A decision by the European Court has ruled it is “discriminatory” for insurance companies to offer cheaper rates of motor insurance to women drivers despite statistical evidence that demonstrates they are safer drivers.
The ruling, which comes into effect in 2013, obliges insurance companies to offer unisex cover without any benefits for women drivers who statistically have a lower road accident rate.
The European Federation of Insurers has declared “profound disillusionment” with the sentence as the statistics demonstrate that the sex of a driver has “an obvious impact on the risk.”
The case was brought by the Constitutional Tribunal of Belgium under a European directive introduced in 2007 which establishes an equal right to services and goods regardless of sex. A clause added by the UE Commission authorizing the 27 member states to make exceptions in the case of insurance has now been declared discriminatory.
The resolution will affect not only motor insurance but any policy based on the sex of a person as criteria. In the UK this may have important repercussions for different products connected with pensions.
Inevitably sources in the insurance industry warn that all premiums will rise as a result of this judgment.
In Spain male drivers currently pay an average 200 euros more than female drivers for motor insurance.
