HONG KONG EOC HELPS WOMAN SUE INSURER OVER DISABILITY DISCRIMINATION

Hong Kong’s Equal Opportunities Commission (EOC) has helped Viola Wan Yim-mei to launch a legal action against American International Assurance, a subsidiary of New York-based AIG, for breaching the province’s Disability discrimination Ordinance. It is the first such legal action in the 11 years that the Ordinance has been in force. The insurance sector is understood to be concerned that, if the claimant is successful, there could be a significant impact in the way life assurers in Hong Kong sell policies. Ms Wan claims that, in August 2004, AIA rejected her employer’s application for a plan on her behalf, offering instead a plan that was 74% more expensive, with a narrower range of benefits than were available under the original plan. Ms Wan suffers from Incomplete Behcet’s Syndrome, caused by an overactive immune system. The writ claims that Ms Wan and her company accepted the revised offer when AIA said that the premium might be further raised if it were not accepted by November 2004. Kelvin Wong Kam-fai, chairman of Asia Pacific Life Insurance Council, warned that if an insurer considers the applicant high-risk, then the company might levy a higher insurance premium. He warned that, if the EOC and the plaintiff won this case, agents would have to be more prudent when making risk assessments on an applicant before completing any sale.