HC Deb 23 May 1973 vol 857 cc83-4W
Mr. Hicks

asked the Secretary of State for Trade and Industry if he will itemise those regulations and directives accepted by the EEC prior to the United Kingdom becoming a full member which relate to assurance and state their effects upon British practices; and if he will indicate the nature of discussions taking place at the present time which will result in draft regulations and directives being considered.

Sir G. Howe

There are three broad categories of directives relating to insurance:

1. Directives already in force before the United Kingdom joined the Community of which there are two:

(a) The directive of 25th February 1964 on the abolition of restrictions on freedom of establishment and freedom to provide services in respect of reinsurance and retrocession.

This directive has no effect upon British insurance practices.

(b) The directive of 24th April 1972 on the approximation of the laws of member States relating to insurance against and liability in respect of motor vehicles and the enforcement of the obligation to take out such insurance. This directive requires motor policies to include that cover which is compulsory in other member States and abolishes inspection of "green cards" for motorists from those countries. In addition, the Motor Insurers' Bureau or its equivalent in each country must accept financial responsibility for compulsory liabilities following accidents involving vehicles registered in their own country, whether insured or not, occurring in other EEC countries. The operative date of this directive for United Kingdom insurers is 1st January 1974, by which date their policies will have to provide the wider territorial cover required by the directive.

2. Directives agreed but not in force before United Kingdom accession:

Two Council directives confer freedom of establishment in non-life insurance business.

These harmonise the laws and administrative practices relating to the authorisation of insurers wishing to establish branches or agencies in other member States and abolish discriminatory provisions. Modifications are being negotiated to take account of the particular needs of the United Kingdom and the other acceding countries.

3. Directives not yet agreed:

Possible directives are now at various stages of consideration among the members of the Community on the following aspects of insurance and insurance supervision:

  1. (a) Freedom to provide services in respect of transport, industrial and commercial risks.
  2. (b) Freedom of establishment in life assurance business.
  3. (c) Winding-up of insurance companies.
  4. (d) Co-ordination of laws and administrative provisions relating to insurance contracts.
  5. (e) Taxation of insurance contracts.
  6. (f) Freedom of establishment for intermediaries (brokers and agents).