Personal Finance

Gender premium plans lack 'common sense'

An MP has suggested that a European court ruling to end women-only insurance premiums lacks common sense.

Financial secretary to the Treasury Mark Hoban said the change "goes against the grain" of a sensible approach to equality.

He explained that he would be seeking "legal certainty" in the wake of the decision on insurance discrimination and said he would push for an amendment to the European Commission's Gender Directive.

In light of the ruling, Mr Hoban will also launch a consultation about the UK Equality Act and added that the UK Government perceives that the judgement applies to insurance contracts entered into on or after December 21, 2012.

Following the ruling, the Association of British Insurers has revealed that it believes the amendments would lead to a 25% hike in car insurance costs for women under 25.

Sam Jackson

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