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PR(01)01: Reference to the EFTA court concerning failure by Liechtenstein to comply with the legal expenses insurance directive (87/344/EEC)

18.9.2002

The EFTA Surveillance Authority has decided that the alleged failure by Liechtenstein to take the necessary measures to comply with Articles 3(1), 4, 6 and 7, read in conjunction with Article 2, of the Act referred to in point 6 of Annex IX to the EEA Agreement (Council Directive 87/344/EEC of 22 June 1987 on the co-ordination of laws, regulations and administrative provisions relating to legal expenses insurance), as adapted by way of Protocol 1 to the Agreement, shall be brought before the EFTA Court.

The purpose of the Directive is to co-ordinate the provisions laid down by law, regulation or administrative action concerning legal expenses insurance in order to facilitate the effective exercise of freedom of establishment and preclude as far as possible any conflict of interest arising in particular out of the fact that the insurer is covering another person or is covering a person in respect of both legal expenses and any other class and, should such a conflict arise, to enable it to be resolved.

Liechtenstein has notified certain national measures as partially implementing the Directive.

However, the Authority has concluded that these measures do not ensure compliance with Articles 3(1), 4, 6 and 7, read in conjunction with Article 2, of the Directive.

Having assessed observations from the Liechtenstein Government to the Authority’s reasoned opinion issued with respect to the Directive, the Authority has concluded that Liechtenstein has failed to take the necessary measures to comply with these provisions of the Directive. Consequently, the Authority has decided to refer the matter to the EFTA Court.

For further information please contact Mr. Peter Dyrberg, Director of the Legal and Executive Affairs Department, telephone (+32) 2 286 18 30.

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