Published on 

Minister Shatter announces the mandatory introduction of unisex insurance

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.