The proposed ban on the use of genetic test results in life underwriting should start immediately after federal parliament passes the draft bill, consumer advocates say.

“This means that any offer of insurance that is made after the date of commencement will be subject to the ban,” the consumer groups write in a joint submission with other stakeholders including medical researchers.

There is no need to give insurers more time to prepare, the submission says.

The industry has known the ban will be implemented since at least September last year, and the submission also notes the Council of Australian Life Insurers indicated support for the measure last September at a press conference with Assistant Treasurer Stephen Jones.

“Thus, life insurers should have been preparing for the implementation of this ban since that time.

“Further, the minister indicated several times that he expected the life insurers to move to voluntarily cease using genetic test results to discriminate.

“If life insurers have not done so, they should not be afforded further time to continue to discriminate once the legislation receives royal assent.”

The submission adds life insurers should already have mechanisms to exclude consideration of genetic test results in underwriting because the industry already has a partial, self-regulated moratorium on using them.

“For this reason ... it should be simple to extend this exclusion to every policy underwritten. Some aspects which may require a transition period include updating content on websites, fact sheets, information provided to insurance brokers and in electronic and printed forms.

“Although insurers should be preparing for these legislative changes, it may require a period of time to ensure that the information provided and available meets the requirements set out in the final form of the legislation.”

The submission was made to a Treasury consultation on design issues for the proposed ban.

The Australian Medical Association, a signatory to the submission, urges the federal government to fulfill its promise to ban genetic discrimination in life insurance.

“It is hard to believe we are in a situation where people, acting through fear of financial penalty, might forsake genetic testing that could save their life or the lives of their children or other relatives,” president Danielle McMullen said.

“This must change. No one should have to fear undertaking genetic testing due to concerns over life insurance discrimination.”