From Jim Irish, University of Technology
John Hind
(11 November, p 60)
says that people who know from a genetic test
that they are predisposed to a disease may be at a competitive advantage in
obtaining insurance if they withhold that information from the insurer.
However, throughout the English-speaking world the law of insurance contracts
is based on the doctrine of “utmost good faith”. Unlike other forms of contract
(marriage, for example), each party to an insurance proposal is required to tell
the other everything that a reasonable person would consider relevant. If you
don’t admit to knowing about a genetic predisposition to a disease, or are
already ill, the insurer can cancel the contract.
You shouldn’t be compelled to take a genetic test, whether for insurance or
other purposes. But if you have such a test and the result is unfavourable, you
have to tell an insurer if you apply for life or disability insurance. You
aren’t obliged to tell the insurer if the insurance is merely being renewed
after you receive the results.
Sydney
