The latest legislation enshrining the “right to be forgotten” in Portugal prevents insurers from increasing insurance premiums or excluding guarantees based on serious illnesses that have been overcome, such as cancer.
With the publication of regulation nº 12/2024, of December 17, insurers are prohibited from increasing premiums or refusing insurance on the basis of medical histories of diseases that have already been overcome. This measure aims to promote fairness and inclusion, ensuring that health history is not an obstacle to accessing insurance and financial products.
The right to be forgotten, now officially incorporated into Portuguese law through this regulatory norm, ensures that citizens are not treated unequally due to medical histories, especially in cases of serious illnesses that have been overcome or with mitigated disabilities.
In other words, someone who has overcome a serious illness, such as cancer, can’t be hindered when taking out life insurance, applying for a bank loan or accessing other financial services. The aim of the measure is, therefore, to ensure that medical history is not a permanent barrier, allowing people to move on after completing treatment and achieving full recovery.
In fact, credit institutions and insurance companies can’t collect health information related to situations of aggravated health risk or disability in pre-contractual processes, as long as the following deadlines are met without interruption:
- Ten years after the end of treatment, in the case of serious illnesses or disabilities that have already been overcome;
- Five years after the end of treatment, if the illness was overcome before the age of 21;
- Two years of effective and continuous treatment, in the case of diseases or disabilities that have been mitigated.
According to the regulations explained by ECOseguros, an insured person who has overcome or mitigated a serious health condition can answer negatively to the questions in the initial questionnaire about these situations. Besides, insurers are obliged to inform customers about the right to be forgotten before signing the contract.
Insurers also can’t offer less favorable conditions, such as higher premiums or exclusions from coverage, based on disability or health risks, unless the risk is technically relevant. In these cases, any decision must be substantiated with rigorous statistical and technical data.
What are the advantages of this new measure?
This change guarantees greater fairness and protection for those who have already overcome serious health conditions or live with mitigated situations.
The legislation thus has three main assumptions:
- Prohibition of discrimination in insurance and financial products: insurers and financial institutions can’t use the medical history of serious illnesses that have already been overcome as grounds for refusing contracts or establishing unfavorable conditions;
- Ensuring transparency: entities under regulation must inform consumers about the application of the right to be forgotten, as well as the conditions under which it is applied;
- Supervision: The Insurance and Pension Funds Supervisory Authority (ASF) will monitor compliance with this rule, imposing penalties whenever necessary.
This measure is designed to guarantee equality in the contracting of insurance and other financial services, which are often essential for obtaining loans or financing the purchase of a home.
It also acts as a mechanism for social inclusion, eliminating discriminatory practices and strengthening the right to equal opportunities. At the same time, it makes it possible to combat prejudices associated with certain health conditions.
