Press Release: Insurance: Commission calls on Luxembourg to stop imposing a compulsory system of motor vehicle excesses

The European Commission has served on Luxembourg a formal request to stop imposing a compulsory system of excesses in third party motor insurance. In the Commission's view, a system whereby the maximum amounts of excesses are laid down by law for all insurance policies covering third party liability in respect of vehicles habitually used in a Member State must be considered contrary to the freedom to market insurance products introduced by the third non-life insurance Directive. Such a system has the effect of restricting free competition between insurance undertakings and of limiting the choice of products available to prospective policyholders. The formal request is in the form of a reasoned opinion. If Luxembourg does not give a satisfactory answer within two months of receiving the reasoned opinion, the Commission may decide to refer the matter to the Court of Justice.

• Primary Source

http://ec.europa.eu/comm/internal_market/insurance/motor/infring_en.htm http://ec.europa.eu/comm/internal_market/insurance/motor/infring_en.htm

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