Information on people's health obtained through genetic testing will not be accessible to insurance companies, employers or lending institutions under a provision of the Disability Bill.
Genetic testing can show if people are susceptible to certain medical conditions. While lending institutions and insurance companies are not at the moment seeking such information, many people vulnerable to genetic disorders fear they might do so in the future.
"For those people and their families the issues are very real," according to Mr Willie O'Dea, the Minister of State at the Department of Justice, Equality and Law Reform. "People may feel pressurised either to undergo genetic tests or reveal results of tests in order to enter the housing market, as mortgage protection cover is a requirement for all mortgages.
"Many people who may have a relative with a genetic disorder feel that they may not be able to get cover or that they will have to pay a very high premium.
"Having a family history of a particular genetic disorder does not mean that one will necessarily be affected by it. But where that possibility exists, at present securing mortgage protection and life assurance could be a problem."
He added that a person with a relative having a genetic disorder may not wish to take a test him or herself, and should not feel pressurised into doing so by the need to buy insurance products.
Therefore the forthcoming Disability Bill will prohibit the use of information from a genetic test in the assessment of an individual for insurance, employment or a mortgage, he said.
According to the insurance industry, 3 to 4 per cent of people seeking life insurance have additional loading because of health problems.
An additional 1 to 2 per cent do not qualify for life cover because of their state of health.
The Irish Insurance Federation already operates a voluntary code of practice whereby information on genetic tests is not sought for life assurance policies below the value of €381,000.