Life insurers have been granted approval to “co-ordinate” on a joint policy response aimed at ensuring frontline healthcare workers won’t be excluded from coverage because of COVID-19.

The Australian Competition and Consumer Commission’s (ACCC) interim authorisation to the Financial Services Council (FSC) and its members means the industry cannot use potential or actual exposure to the respiratory illness as a reason to decline coverage, charge higher premiums or apply risk exclusions to any new policy.

The authorisation applies to new policies but excludes pricing action.

“This is a stressful time for everyone, but especially those working at the front line of our response to the COVID-19 pandemic,” ACCC Chairman Rod Sims said. “It’s sadly understandable that such workers may consider life insurance coverage at this time.

“We see a clear public interest in allowing FSC members to work together to provide a consistent, clear and fair approach to people performing critical work during this pandemic.”

He says the authorisation does not include co-ordination on pricing, “meaning customers should still shop around”.

Frontline healthcare workers include doctors, nurses, all hospital staff, people working at GP surgeries or clinics, people working on COVD-19 vaccines, pharmacists, police, aged care workers and volunteers supporting people with COVID-19.

Last month the FSC said no existing life insurance policies have exclusions that would prevent the policy paying out a death claim related to coronavirus if government travel advice had been followed.

However, start dates for new cover may be deferred depending on policyholders’ recent or planned travel. The delays may also apply to policyholders planning to reinstate or increase their policies.