The Minister for Justice, Equality and Defence, Mr Alan Shatter T.D. today
announced publication of the general scheme of a Bill to provide in Irish
law for the mandatory introduction within the EU of unisex premiums and
benefits in insurance. In Ireland, this will involve changes to current
practices in the areas of motor insurance, life assurance, critical illness
cover, income protection cover, and private annuities and pensions.
Minister Shatter said, "This change has its origin in a gender equality
case brought by a consumer rights group before the courts in Belgium in
2007. The Court of Justice of the EU upheld their complaint in 2011 and
ruled that Article 5(2) of Directive 2004/113/EC, which enables Member
States to maintain an exemption from the rule of unisex premiums and
benefits in insurance, must be considered to be invalid upon the expiry of
an appropriate transitional period. The Court determined that this period
should end on 21 December 2012. Ireland is obliged to implement the
decision of the Court. "
The Minister also launched an information note for consumers on the new
rules on the permitted use of gender by insurance providers, which are to
come into force in December 2012
The information note explains the mandatory introduction within the EU of
unisex premiums and benefits. In Ireland, this will involve changes to
current practices in the areas of motor insurance, life assurance, critical
illness cover, income protection cover, and private annuities and pensions.
Sources of further information and advice and the redress mechanisms
available in the event of disputes are also outlined. The information note
will be made widely available through the existing public information
channels available to the Government Departments, public sector bodies and
insurance sector organisations concerned.
The Minister expressed his thanks to the industry bodies - the Irish
Insurance Federation, the Irish Brokers Association, the Professional
Insurance Brokers Association and the Society of Actuaries in Ireland - who
contributed to the preparation of this advice for consumers, along with the
Departments of Finance, Jobs, Enterprise and Innovation, and of Social
Protection, the Central Bank, the National Consumers Agency, the Citizen
Information Board, the Pensions Board, the Equality Authority, and the
Financial Services Ombudsman's Bureau.
The general scheme and information note are available on the Department of
Justice and Equality website: www.justice.ie
http://www.justice.ie/en/JELR/Pages/PB12000290
http://www.justice.ie/en/JELR/Pages/PB12000296
31 October 2012
ENDS
Note for Editors
In its decision of 1 March 2011, in case C-236/09 (the ‘Test-Achats’
ruling) taken by a Belgian consumer rights organisation, the Court of
Justice of the EU declared that Article 5(2) of Council Directive
2004/113/EC of 13 December 2004, implementing the principle if equal
treatment between men and women in the access to and supply of goods and
services, was invalid with effect from 21 December 2012. This decision is
binding on all Member States of the EU.
The effect of this ruling is that Ireland is obliged to prohibit by law the
selling of private insurance products which differentiate by gender on
price or benefits and to have such provisions in force on or before 21
December 2012. The unisex rule will apply to all contracts concluded for
the first time as and from that date. It also applies to agreements between
parties as and from 21 December 2012 to extend contracts concluded before
that date and which would otherwise have expired.
Gender-sensitive calculation of premiums and benefits are currently only
permitted in Ireland under the Equal Status Acts 2000 to 2011 in the areas
of life assurance (both life cover and mortgage protection), critical
illness cover, income protection cover (PHI), annuities, pensions and motor
insurance. Such differences in treatment must be related to the assessment
of risk and supported by evidence.
Complaints of gender discrimination under the Equal Status Acts may be
referred to the Equality Tribunal, which investigates or mediates claims of
unlawful discrimination under the equality legislation, or to the Circuit
Court.
Consumers may contact the Equality Authority for information and advice
about the Equal Status Acts. The Equality Authority is the statutory body
set up to work towards the elimination of unlawful discrimination, to
promote equality of opportunity and to provide information to the public on
the equality legislation.