Brussels, 08/02/2002 (Agence Europe) - On Friday, the European Commission sent a reasoned opinion to Luxembourg requesting it to cease application of a mandatory no-claims bonus system in third-party motor insurance. It considers the system runs counter to the freedom to set scales of premiums established by the third non-life insurance Directive. The Commission does not dispute the Member States' right to introduce a scale that takes into account the damage caused by policy holders or even a uniform no-claims bonus system. It takes the view, however, that in so far as mandatory no-claims bonus systems have automatic and mandatory repercussions on premiums, they breach the principle of tariff freedom. At the present time, insurers operating on the Luxembourg market are unable to choose other criteria for taking into account the policyholder's past record with a view to freely adjusting the basic premium either upwards or downwards. In the absence of any satisfactory response from Luxembourg in the next two months, the Commission may decide to take the matter before the Court of Justice.