Amendment affects children's welfare

Since the amendment to Article 107 of Insurance Law governing child insurance took effect Feb. 3, which states clearly that a policy holder must be 15 or above before death benefits can be received in the event of the policyholder's death, insurance companies have stopped offering accidental death coverage for people aged under 15.

This change has caused many charity organizations to cancel outdoor activities for disadvantaged children, while many schools have called a halt to graduation trips.

Taichung Mayor Jason Hu said the amendment -- initiated following strong pressure from C.V. Chen, a local attorney and president of the Red Cross Society of the Republic of China, to prevent insurance fraud in which parents murder their children in order to claim the insurance money -- was passed into law in a spirit of goodwill, but he questioned whether the insurance companies had overreacted to the change in the law.

The amendment forbids any payments at all in the event of the death of an insured child less than 15 years of age. It requires that if a minor is insured for accidental death and dies before 15 years of age, the insurer should pay out only the premium plus interest accrued.

Previously, the beneficiary could receive up to NT$2 million (US$62,500) in funeral expenses for an insured minor aged 14 or under, or those diagnosed as suffering from a mental disorder who die before the age of 14.

As the amendment does not apply retroactively to insurance policies sold prior to the amendment, about 520,000 insured minors are unaffected by the amendment.

Hu instructed Taichung city officials to find out whether the amendment is too restrictive or prohibitive and to notify the administration and the Legislative Yuan if there should be any remedial measures applied to the new law.

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