Brussels, 25/01/2007 (Agence Europe) - The European Commission has decided to send Ireland a formal request to submit its observations on the continued legality of the exemption of the Irish Voluntary Health Insurance Board (VHI) from certain EU rules on non-life insurance. This follows a complaint that VHI was unlawfully pursuing insurance activities without being subject to the First Non-Life Insurance Directive (directive 73/239/EEC).
When this directive was adopted in the 1960s, it was considered necessary to exclude some public and semi-public monopoly institutions providing, in particular, health or fire insurance, from the scope of application of the Directive. VHI has been affected by this exclusion since Ireland's accession, to the EU in 1973. The Commission is currently investigating whether VHI - whose legal status has developed greatly since then - can still be considered to fulfil the requirements for exemption.
Dublin now has one month in which to respond, but it is unlikely that the Commission will have to continue the procedure since, on the same day as the announcement of the launch of the procedure, VHI published a statement on its internet site, stating that the government “have already moved to address this situation. New legislation (is) currently being drafted. VHI Healthcare has committed to complying with this decision”. (mb/cd)