Test Achats vs Council of Ministers
Encyclopedia
Test Achats versus the Council of Ministers was a case before the European Court of Justice
. The issue was whether it is legal for insurance companies to discriminate on the basis of gender in the European Union
. Specifically the question was whether Article 5 (2) of a European Law called Directive 2004/113/EC
which gave a derogation to insurance companies to continue to discriminate based on gender if based on relevant and accurate actuarial and statistical data was compatible with the constitutional treaties of the European Union. Test Achats is the name of the Belgian consumers' association.
On March 1st 2011 the court ruled in favor of Test Achats that article 5 (2) of the directive in question was in breach of the Charter of Fundamental Rights of the European Union
and therefore void. However the court ruled that there would be a transitional period to enable insurance companies to comply with the ruling this will last until the 21st of December 2012.
The ruling means that when the transitional period is over all new insurance contracts entered into in the 27 European Union member states will not be able to use gender to determine premiums paid or benefits granted. The ruling will benefit male drivers who have traditionally paid more for their motor insurance than women it will also benefit female purchasers of life insurance who tend to live longer than men. Naturally it is likely that female drivers and male life insurance purchasers will pay more.
The case raised important issues in the jurisprudence of the European Union namely the court ruled that the legislative organs of the E.U. do not have the power to legislate in such a way that contravenes the treaties and that it is the court and not the legislature who has the sole right to interpret the treaties.
The ruling was welcomed by many as a step forward for gender equality and for ending outdated practices but met with some controversy particularly from U.K. conservative politicians who felt the court was overstepping its power and in effect making its own legislation.
Sources:
http://www.slaughterandmay.com/media/1524002/the-test-achats-case.pdf
European Court of Justice
The Court can sit in plenary session, as a Grand Chamber of 13 judges, or in chambers of three or five judges. Plenary sitting are now very rare, and the court mostly sits in chambers of three or five judges...
. The issue was whether it is legal for insurance companies to discriminate on the basis of gender in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. Specifically the question was whether Article 5 (2) of a European Law called Directive 2004/113/EC
Directive 2004/113/EC
Since the Treaty of Amsterdam came into force in 1999, new EU laws, or Directives, have been enacted in the area of anti-discrimination.The Council Directive 2004/113/EC Since the Treaty of Amsterdam came into force in 1999, new EU laws, or Directives, have been enacted in the area of...
which gave a derogation to insurance companies to continue to discriminate based on gender if based on relevant and accurate actuarial and statistical data was compatible with the constitutional treaties of the European Union. Test Achats is the name of the Belgian consumers' association.
On March 1st 2011 the court ruled in favor of Test Achats that article 5 (2) of the directive in question was in breach of the Charter of Fundamental Rights of the European Union
Charter of Fundamental Rights of the European Union
The Charter of Fundamental Rights of the European Union enshrines certain political, social, and economic rights for European Union citizens and residents, into EU law. It was drafted by the European Convention and solemnly proclaimed on 7 December 2000 by the European Parliament, the Council of...
and therefore void. However the court ruled that there would be a transitional period to enable insurance companies to comply with the ruling this will last until the 21st of December 2012.
The ruling means that when the transitional period is over all new insurance contracts entered into in the 27 European Union member states will not be able to use gender to determine premiums paid or benefits granted. The ruling will benefit male drivers who have traditionally paid more for their motor insurance than women it will also benefit female purchasers of life insurance who tend to live longer than men. Naturally it is likely that female drivers and male life insurance purchasers will pay more.
The case raised important issues in the jurisprudence of the European Union namely the court ruled that the legislative organs of the E.U. do not have the power to legislate in such a way that contravenes the treaties and that it is the court and not the legislature who has the sole right to interpret the treaties.
The ruling was welcomed by many as a step forward for gender equality and for ending outdated practices but met with some controversy particularly from U.K. conservative politicians who felt the court was overstepping its power and in effect making its own legislation.
Sources:
http://www.slaughterandmay.com/media/1524002/the-test-achats-case.pdf