Consultation Paper on Review of the Age of Capacity to Enter into an Insurance Contract
Section 58 of the IA provides that an individual between 10 to 16 years of age will have no capacity to enter into a contract of insurance unless there is written consent by a parent or guardian. However, an individual above 16 years old will have the capacity to enter into a contract of insurance independently. The paper proposes to remove the minimum age requirement for entering into an insurance policy and raise the age at which an individual can enter into an insurance contract without parental consent to 18, to align with the age of contractual capacity under the Civil Law Act (Cap. 43). It also proposes to expand the scope of section 58 of the IA to encompass not only policy ownership but all dealings relating to the policy.