Insurance Companies to Pay Out

Death and disability claims will no longer be denied to AIDS victims.

The Life Offices' Association, which is the governing organization for 95% of all insurance companies in South Africa, has announced that its members will no longer exclude HIV/AIDS victims and their families from receiving death and disability benefits. In 2005, clauses excluding HIV/AIDS victims were done away with in insurance policies. However, the exclusion clauses in policies taken out before 2005 were still in effect. This latest development means that all policies, regardless of initiation date, will no longer exclude people with HIV/AIDS.

This is a welcome development for many families. In the past, families were driven into financial ruin when policies which they had been paying regularly, were denied them. On behalf of approximately 50 families who were denied coverage, the AIDS Law Project has been tirelessly advocating for the removal of the exclusion clause.

The new focus now will be on obtaining more affordable coverage for people infected with HIV.