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People with HIV/AIDS now able to obtain bonds
Mziwakhe Hlangani. The Mercury, 21 August 2002. Reprinted courtesy of Independent Newspapers (Pty) Ltd.
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HIV and AIDS status will no longer be a factor in the granting of home loans of up to R150 000.
The watershed deal, a major victory to people living with HIV and AIDS, follows an agreement reached this week at a National Economic Development and Labour Council meeting between the banks, labour and government.
Previously, certain banks insisted on testing for HIV. Those found to be positive were rejected or else ordered to take high-premium life cover.
The new scheme will not require medical underwriting, thus giving people with HIV and AIDS under the age of 50 guaranteed access to bonds.
Dudu Msomi, deputy director of the Life Insurance Association of South Africa, said: "It's a commitment that all financial institutions felt was necessary in order to deal with the most pressing issue in relation to systematic discrimination against poor communities and those living with HIV."
In co-operation with the government, she said, financial institutions would fine-tune the scheme to ensure low-income households and those living with HIV and AIDS, or their dependants, were not denied access to basic financial services.
Msomi reiterated the industry's commitment to ending discrimination and reducing inequalities, saying even financial subsectors had begun developing a code of conduct against discrimination.
Medical tests to determine risks involved for individual insurance applicants would remain, she said, pointing out that "differentiation remained the legitimate objectives of the insurance industry.
"It is based on a basic principle, making it imperative for actuaries to analyse the risks involved between a smoker and a non-smoker," she said.
Banking Council chief executive Bob Tucker said practical steps were being taken to begin implementing specific issues of the framework agreement.
"Government involvement will make it easier for legislation on amendments to be finalised soon in relation to addressing housing needs for the poor and simultaneously maintain international standards of banking practice," he said.
Tucker also said alternative approaches were being considered, in partnership with the department of trade and industry, to develop housing units for the many communities that were unable to own houses or pay for electricity and water. |
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