An Australian student won an important court ruling that could have implications on travel insurance around the world
A Melbourne woman won a momentous discrimination case after being denied her travel insurance claim due to her mental illness.
After suffering a severe episode of depression Ella Ingram cancelled a school trip in 2012 to the United States. It was the first time she had shown symptoms of the illness.
The insurance giant QBE, denied the claim after her family applied to QBE to claim back the costs of the cancelled trip. QBE argued its policies did not extend to cover mental illness.
But the now 21-year old nursing student, Ingram, took the case to court, claiming the insurance policy was discriminatory.
The tribunal agreed with Ingram, awarding her nearly $4,300 for economic losses arising from the claim, and a further $15,000 for hurt and humiliation.
The tribunal said that QBE had engaged in “unlawful discrimination when it included the mental illness exclusion” in its travel insurance policy. It argued that mental illness can be classed as a disability and is therefore covered by anti-discrimination laws.
“I really want this to pave the way for others living with a mental illness to stand up for their rights, and insurers to not treat us like second-class citizens,” Ingram said in a statement issued through Victorian Legal Aid, which provided her with representation. “I thought their treatment of me might be what I would experience for the rest of my life.”
The tribunal rejected claims by the insurer that it would suffer “unjustifiable hardship” if it removed blanket exclusions on mental health claims.
“There was no evidence that it considered any statistics, actuarial data or expert medical information about the risks presented by different types of mental illnesses when it created this travel insurance policy and decided to exclude all claims made because of a mental illness,” said Melanie Schleiger from Victorian Legal Aid.
“Ella’s win confirms that compliance with discrimination laws is not optional and that insurers need to base their decisions on evidence, not stereotypes and assumptions, when they reject a claim or cover because of a mental illness.”
After suffering a severe episode of depression Ella Ingram cancelled a school trip in 2012 to the United States. It was the first time she had shown symptoms of the illness.
The insurance giant QBE, denied the claim after her family applied to QBE to claim back the costs of the cancelled trip. QBE argued its policies did not extend to cover mental illness.
But the now 21-year old nursing student, Ingram, took the case to court, claiming the insurance policy was discriminatory.
The tribunal agreed with Ingram, awarding her nearly $4,300 for economic losses arising from the claim, and a further $15,000 for hurt and humiliation.
The tribunal said that QBE had engaged in “unlawful discrimination when it included the mental illness exclusion” in its travel insurance policy. It argued that mental illness can be classed as a disability and is therefore covered by anti-discrimination laws.
“I really want this to pave the way for others living with a mental illness to stand up for their rights, and insurers to not treat us like second-class citizens,” Ingram said in a statement issued through Victorian Legal Aid, which provided her with representation. “I thought their treatment of me might be what I would experience for the rest of my life.”
The tribunal rejected claims by the insurer that it would suffer “unjustifiable hardship” if it removed blanket exclusions on mental health claims.
“There was no evidence that it considered any statistics, actuarial data or expert medical information about the risks presented by different types of mental illnesses when it created this travel insurance policy and decided to exclude all claims made because of a mental illness,” said Melanie Schleiger from Victorian Legal Aid.
“Ella’s win confirms that compliance with discrimination laws is not optional and that insurers need to base their decisions on evidence, not stereotypes and assumptions, when they reject a claim or cover because of a mental illness.”
