Desjardins removing self-injury exclusion clause from some policies

Desjardins Group is changing its policy of denying benefit payments to people who attempt to harm themselves, reports CBC.

Effective immediately, adds CBC, the insurer “is removing a contentious exclusion clause from the employee benefits plan of at least one of its clients, the Centre for Addiction and Mental Health (CAMH) in Toronto.” This move by Desjardins follows a CBC investigation into the use of such exclusion clauses by insurers across Canada. Read more.

As Advisor.ca recently reported, self-injury clauses have typically been used in products such as accidental death policies and disability policies to prevent claimants from injuring themselves for monetary gain. But these clauses, and the language within them, are viewed by some as outdated due to the evolving conversation around mental health.

As a result, the Canadian Life and Health Insurance Association says many companies are now reviewing the language and exclusions used in their policies. And, CLHIA is offering guidance to insurers as they make changes.

For more on how to help clients with claims, click here.

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