A bill tabled by independent MP Alexandra Attalidou on vehicle insurance for older drivers is now one step away from the plenary, at a time when complaints about age discrimination by insurance companies are intensifying. Review of the proposal was completed in the House Human Rights Committee on Monday, with parties expressing their intention to support it. The proposal now moves forward for debate and possible adoption in the plenary.
What the proposal provides
The bill aims to address practices that have been denounced for years by citizens and pensioners’ organisations, according to which insurance companies impose excessive premium increases or outright refuse insurance to older drivers based solely on their age. At the core of the proposal is the provision that every citizen holding a valid driving licence is entitled to access third-party liability insurance. Age alone cannot constitute grounds for refusal of insurance nor justify blanket and unjustified surcharges.
At the same time, the proposal introduces a requirement for written and substantiated justification in every case of refusal of insurance or imposition of less favourable terms. Insurance companies will be required to base their decisions on objective and actuarial data rather than general assessments linked exclusively to the driver’s age.
Complaints and sanctions
A key aspect of the proposal concerns the ability of citizens to lodge complaints against insurance practices that violate the law. The supervisory framework is strengthened so that competent authorities can investigate complaints about unjustified refusals of insurance or abusive premium increases. In the same vein, the proposal provides for administrative sanctions and fines in cases of non-compliance. The thinking is that without deterrent penalties the provisions risk remaining ineffective, allowing practices that lead to social exclusion to continue.
Open letter to political parties
The discussion of the bill is taking place amid intense pressure, with the Pensioners’ Branch of civil servants’ union PASYDY, the Cyprus Third Age Observatory, the Organisation of Elderly Citizens of Cyprus (OPREPO) and the Cyprus Pensioners’ Union (PESY-PEO) denouncing lobbying by insurance companies towards political parties. In an open letter to MPs, the organisations call on Parliament not to bow to business interests that, they argue, seek to influence the vote on the bill.
They state that these pressures are directly linked to provisions of the proposed regulation, which limit the ability of insurance companies to impose blanket increases or refuse coverage based solely on age. The organisations remind that, according to available data presented before parliamentary committees, older drivers are responsible for a small percentage of road accidents – a fact which, they argue, does not justify collective penalisation or exclusion.
In this context, they urge MPs to ensure that the final decision of Parliament is based on principles of equal treatment, transparency and substantive protection of citizens against abusive practices.
This article was originally published in Greek in Politis