New Zealand’s Human Rights Commission is reviewing its guidelines for the insurance market. It hopes to revise the rules to ensure they reflect changing demographics and new knowledge on mental health issues.

In particular, the commission will review the use of mental illness exclusions. Insurers are able to rely on blanket exclusions against certain ailments to avoid writing policies perceived as risky.

A discussion paper on the rules says such exclusions have the potential to be discriminatory, particularly with regard to life insurance.

“If all insurers were to impose blanket exclusions in respect of particular ailments, the effect of the practice would be to place any person who may come to suffer from a particular ailment at a clear disadvantage with others in society,” the commission said in its overview.

“(This is) regardless of actuarial or statistical justification, (and has) the potential to perpetuate society prejudices.”

Since 2002, the commission has received 48 inquiries about possible cases of discrimination in insurance – 17 of them related to mental illness.

The commission will also consider the potential for discrimination according to genetic predispositions – an issue that has been widely examined in Australia. Public submissions on the guidelines are being accepted until December 11.