DRIVERS OVER 70 YEARS OF AGE - INCREASE IN INSURANCE PREMIUMS NOT DUE TO AGE, BUT ONLY IF COMPANIES PROVE THAT THERE IS A RISK - Filenews 30/3
The Human Rights Committee of the Parliament discussed the referral by the President of the Republic of the law on Motor Vehicles, regarding insurance against third parties, with MPs taking a positive position on proposed proposals. As the Lawyer of the Republic, Elli Florentzou, stated before the Committee, the goal of the Legal Service is not to delete the law, but to correct its structure.
Ms. Florentzou explained that the legislation, which was passed following a law proposal by the independent MP, Alexandra Attalidou, so that drivers do not discriminate in vehicle insurance on the sole basis of their age, introduces positive regulations. He added, however, that corrections need to be made, among other things, to shield the application of the law and not to have the room to interpret it before a court as a violation of the rights of insurance companies.
Specifically, Ms. Florentzou stated that it should be clarified that the prohibition on an insurer refusing insurance coverage for a motor vehicle or imposing a premium increase, without providing the person in question with sufficient and documented justification, should be explicitly stated in the law that it applies in relation to an existing insured person. He explained that in the event that it is not stated that the prohibition already concerns an existing customer of the insurance company, then it can be interpreted before a court as a violation of the company's right to contract with a customer.
Ms. Florentzou went on to say that it should be stated in the law that, in case of the insurer's intention to refuse motor vehicle insurance coverage or impose a premium increase on an existing insured person, the justification should be provided in writing at least three months before the end of the contract.
"This is how the guarantees are given for the citizen, so that he can be insured, but also so that the insurance company cannot say that its rights are violated," she explained. He also noted that this legislation provides tools for the state to control the services provided by insurance companies, so that they do not impose age discrimination. At the same time, he said that citizens are given the opportunity to address the Commissioner for Administration, a court, but also the Financial Commissioner, if they find violations.
However, answering a question by the President of the Committee and Member of Parliament of AKEL, Giorgos Koukoumas, regarding the implications that the term of revision of insurance policy of a general nature may have, Ms. Florentzou explained that it means the application of rules that concern an objectively defined risk category and are applied uniformly to all persons subject to it, without targeted or exclusive differentiation based on age.
He added that, according to this term, differentiations can be applied to the insurance of people of one age group, only if the companies provide data showing that there are special risk reasons and after these data are evaluated by the competent services of the state.
In addition to the clarifications in the text of the law, the Legal Service also recommended the adoption of transitional provisions, for better implementation of the law. One of them concerns the submission of data by insurance companies to the Registrar of Insurance Companies, noting that this should start from 1/1/2027, so that companies have the opportunity to start collecting complete data.
The MPs of DISY, Rita Superman and Marios Mavridis, as well as the independents, Alexandra Attalidou and Irini Charalambidou, took a positive position on the proposed proposals. The MPs of AKEL and DIKO reserved their position at the plenary session, where the text will be raised.
In statements after the meeting, Ms. Attalidou stated that she has received complaints from citizens that insurance companies are proceeding with the cancellation of contracts. He noted that the issue was raised with the Committee and that the Superintendent of Insurance Companies undertook to immediately contact the Association representing the insurance companies, in order to put an end to this practice.
He called on "all citizens to immediately address both the Financial Commissioner and the Commissioner for Administration", adding that "we will record these complaints and from now on we will name the insurance companies that thus voluntarily discriminate against people based on age".
CNA
