Insurance law lacking across half the EU

Insurance policy holders in eight member states may not be sufficiently protected because their governments have not implemented EU law, the European Commission said on Thursday.

It has stepped up its battle with those governments, demanding they transpose the law at national level within two months.

The EU directive covers the winding up of failed insurance companies with branches in other member states.

Under its rules, policy holders are better protected when the company folds.

Brussels has sent formal requests, known as 'reasoned opinions', to Belgium, Greece, France, Luxembourg , the Netherlands, Finland, Sweden and the UK.

This is the second stage in the EU infringement procedure where member states have not put EU law in place, and could lead to a government being hauled before the European Court of Justice if it does not respond to the request within two months.

A commission spokesman said "Potentially, policy holders are not as well covered as they might be".

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