Brussels, 26/07/2000 (Agence Europe) - The European Commission sent the Italian government a "warning letter" (first stage in the infringement proceedings) over the case concerning motor vehicle insurance. The decision to open the proceedings was included in the agenda of the Commission meeting last 5 July, but it had been postponed as the Italian authorities had announced the presentation of new elements. The Commission then gave a waiting period: however in the absence of new information, it opened the procedure last week, and presently the letter of warning has been sent to Rome. The commission was held to act as it had received formal complaints from the Association of Italian Insurers (ANIA)and several other complaints. The opening of the procedure obviously does not pre-judge the final decision.
Since last 29 March, the insurance companies operating in Italy are no longer free to set their commercial offers and their premiums concerning "third party" insurance contract in the motor vehicle sector. The measure was the object of a government decree, then converted into law by the parliament on 26 May. The government decree had a general character, aiming "urgent provisions for the limiting of inflationary pressure." The parliament suppressed the other aspects (distribution of fuels, rail transports, etc.) by not maintaining the "motor vehicle insurance" aspect. Under these conditions, the Commission considers that the measure is not part of the general system of price controls and cannot be justified by considerations of general interest. The Italian government's "anti-inflationary" justification falls short, in the Commission's opinion, which felt that the measures in question could go against "the free marketing if insurance products in the EU and constitutes a barrier to the right of establishment and the freedom to provide services."
The provisions of the Italian law, in particular: a) prohibit for one year any upward adjustment in premiums for insured parties whose contracts include a scale of premiums of providing adjustment in the event of accidents, b) the establishing of a freeze on premiums for all new contracts, c) forcing insurance companies to offers a "no-claims contracts with an excess of no more than ITL 1 million.
The Commission underlined that these provisions are also applicable to contracts offered from another Member States in free provision of services. These limitation discourage or even prevent the entry of new insurer on the Italian market.