James Lawless (Kildare North, Fianna Fail) | Oireachtas source

I agree with the Minister's comments. I worked in the insurance industry and the health insurance industry, in particular, and, therefore, I am familiar with the motivation behind the section. Deputy Daly will be glad to know that the advertisements that the VHI or other health insurers run and any tests they may perform as regards a predisposition to various conditions and diseases under law can have no effect on the premium they charge because of community rating, which means health status and categories of illness are immaterial when it comes to premium pricing.

There is a difficultly with the amendments. The Minister stated that one of the grounds for the purposes of a contract is that consent be freely given. Life insurance has always been risk-rated as opposed to community-rated and there is a difficulty in this regard. For instance, when completing a proposal form, one is required to outline various health conditions and information which is necessary for actuarial pricing for the performance of the contract. Under the amendment, there is the possibility of the data subject withholding consent. I do not know how that would work if a contract has been signed. If a client filled out a proposal form to take out a life insurance contract and at a later stage withheld consent for the use of this information, how could a claim be processed if no one has access to the information that was the subject of the contract in the first place? The amendments are well-intentioned but they are problematic and I do not see how they could work. I will oppose the amendments.