The Australian Law Reform Commission has declined to recommend removing insurers’ right to discriminate when offering some types of cover.

The commission’s inquiry into the impact federal laws have on disabled people was expected to examine life and travel insurance.

Its report, released last week, says concerns were expressed about exclusions – such as for pre-existing conditions and mental illness – and the transparency of data on which decisions are based, plus insurers’ reliance on the insurance exemption under the Disability Discrimination Act.

The commission focused on disabled people having decisions made for them, and how their wishes are considered in decision-making.

It says it will make no recommendations on consumer protection law without further considering the impact on disabled people who remain capable of making decisions.

The Insurance Council of Australia had argued exemptions from disability discrimination laws allow insurers to manage risks appropriately.