Kyle, we (Sovereign) would have been very happy to talk to you at any stage to help you report the facts around how we approach policyholders who are incapacitated due to mental illness. Unfortunately there were many inaccuracies in the article you have referenced as your source.

The insurance policies under discussion are generically termed ‘income protection’ policies where policyholders will make a claim because they cannot work due to illness. They receive a monthly benefit, depending on their specific policy. Sovereign’s product is called ‘Disability Income Insurance’. Benefits under these types of policies at the moment don’t actually cover treatment cost. However, we may elect to pay for treatment costs to facilitate rehabilitation and this could include mental health payments, if advocated by the treating doctor. Our position on these types of payments has not changed.

Payments for mental health issues are not covered under health insurance products and this is most likely to be the case for most other providers.

In terms of how we may approach a policyholder who cannot work due to mental health issues:
• Sovereign pays for evidenced-based treatment. A rehabilitation programme for a policyholder suffering from mental health may include Cognitive Behavioural Therapy (CBT), an exercise programme, and/or pharmacological treatment. Any rehabilitation programme is developed and managed by the policyholder and their own GP.

• If CBT is prescribed by a medical practitioner as part of a rehabilitation programme, Sovereign pays for the treatment - we will also provide funding for Specialist Assessment as a Psychiatrist has the training and experience to develop treatment programmes for people suffering from mental illness.

• We work closely with our policyholders who suffer from depression to do everything possible to help them back to a life where they can function as they did, pre-claim. For example, we recognise (as do the Mental Health Foundation) that exercise is probably one of the most effective ways for a person to recover from depression and as such, we may pay for occupational therapists to develop an exercise programme designed to introduce not only physical activity into the person's life, but a daily routine. Much of this work and relationship management is not covered under any policy, but we recognise it is much better for everyone for a person to be back at work and living a life with better wellbeing.

David Drillien
General Manager Marketing and Product, Sovereign