QBE says mental illness exclusions in travel insurance “are still necessary”, despite a tribunal finding in favour of a woman who claimed she was a victim of discrimination.

Ella Ingram was forced to pull out of a year 11 school trip to New York four years ago when she developed a depressive illness.

She claimed for $5860, but QBE declined to pay because the policy excluded mental illness.

Ms Ingram, from Melbourne, took her case to the Victorian Civil and Administrative Tribunal and won after QBE failed to demonstrate the exclusion was based on reasonable data, or that it would have suffered unjustifiable hardship without it.

She was awarded $4292 to cover economic losses and a further $15,000 for hurt and humiliation. But the insurer says the ruling will not affect policy wordings.

“We recognise this case and its outcome relates only to a specific set of circumstances and therefore accept the… finding in this matter,” it told insuranceNEWS.com.au in a statement.

“In order to keep our travel insurance product at affordable levels and ensure we can continue to provide this important cover for travellers, we have determined mental illness cover a necessary exclusion at this time.

“We welcome further engagement with all stakeholders around the issue of mental illness and how it relates to the insurance industry. We are already working closely with the Insurance Council of Australia on these issues and look forward to continuing this work.”

Consumer Action Law Centre Senior Policy Officer David Leermakers believes insurers can expect further challenges.

“Blanket mental health exclusions do not strike the right balance,” he told insuranceNEWS.com.au.