MPs Back Changes to Motor Insurance Law on Age Discrimination

Legal Service says changes needed to protect both consumers and insurers

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The House Human Rights Committee on Monday discussed the President's referral back to parliament on the motor vehicle insurance law, with MPs expressing their support for proposed amendments.

Speaking before the committee, Elli Florentzou frrom the Attorney General's office said the aim is not to scrap the law, but to improve its structure.

Preventing discrimination

The law, originally proposed by independent MP Alexandra Attalides, seeks to prevent age discrimination in vehicle insurance. While Florentzou said it includes positive provisions, she stressed that changes are needed to ensure it is applied properly and cannot be challenged in court as violating the rights of insurance companies.

She explained that the law should clearly state that insurers cannot refuse coverage or increase premiums without proper justification, but that this should apply specifically to existing customers. Without this clarification, she warned, it could be interpreted as limiting a company’s right to choose its clients.

Florentzou also said insurers should be required to provide written justification at least three months before the end of a policy if they intend to refuse renewal or raise premiums for an existing customer.

“This ensures protection for citizens, while also safeguarding the rights of insurance companies,” she said, adding that the law gives the state tools to monitor insurers and prevent age-based discrimination.

Scrapping ageism 

She noted that citizens who believe they have been treated unfairly can file complaints with the Ombudsman, the courts, or the Financial Ombudsman.

Responding to a question from committee chair and AKEL MP Giorgos Koukoumas, Florentzou clarified that general insurance policy reviews must be based on objective risk categories applied equally, without targeting specific age groups.

She added that differences in insurance terms for certain age groups would only be allowed if companies provide evidence of higher risk, which must be assessed by state authorities.

The Legal Service also proposed transitional provisions to help implement the law, including a requirement for insurance companies to begin submitting data to the Insurance Registrar from 1 January 2027.

Name and shame

Disy MPs Rita Superman and Marios Mavridis, as well as independents Alexandra Attalides and Irene Charalambidou, welcomed the proposals. MPs from AKEL and DIKO said they would take a final position during the plenary session.

After the meeting, Attalides said she had received complaints from citizens that insurance companies were cancelling policies. She added that the Insurance Registrar would contact the insurers’ association to address the issue.

She urged citizens to report cases to the relevant authorities, warning that companies found to be discriminating based on age would be publicly named.

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