WRITTEN QUESTION P-2583/99 by Christopher Huhne (ELDR) to the Commission. Travel insurance bundling.
Date: 1999-12-16
Institutions: European Parliament, Provisional data
Subjects: United Kingdom, competition law, consumer information, consumer protection, insurance contract, travel, travel agency

C 225 E/174

Official Journal of the European Communities

EN

8.8.2000

The Commission has also established the business test panel project, within the single market action plan,
which is a mechanism whereby proposed Community legislation can be critically reviewed directly by
individual businesses in the Member States. This review process complements the BIA system, helps to see
whether proposals will result in new increased compliance costs and administrative burdens for business,
and gives an idea of their scale and magnitude. The business test panel is a pilot project, which will be
reviewed in the year 2000.

A BIA appears as part of the documentation accompanying every legislative proposal which is likely to
have a significant impact on business. This is published as part of a COM document which is submitted to
the Council, the Parliament and the Economic and social committee. These documents are distributed by
the Office of publications, they are available to outside interests, and scrutiny of their content is welcome.

Proposals to improve the BIA system are under active consideration within the Commission at a time of
substantial changes and re-organisation of directorates-general. This review will assess the effectiveness of
the current procedures against the background of the Commission(cid:146)s commitment to (cid:145) better regulation(cid:146).
This will also be done in close co-ordination with other Commission work and initiatives on the
simplification of internal market legislation, such as simplification of legislation for the single market
(SLIM), and the business test panel pilot project.

To answer the specific questions posed by the Honourable Member:

1. Due to the complexity of the decision making process, it is difficult to say how many legislative
proposals have been dropped over the years directly as a result of a BIA. This would need to be
considered on a case by case basis, and would take up considerable resources.

2. Up to now no quantification of the impact of BIAs on reducing or preventing costs has been carried
out. However, the Commission published in 1997 a report on (cid:145)Improving the quality of legislation for
business: The European Commission(cid:146)s business impact assessment system(cid:146). This report outlined the
history and the development of the business impact assessment system along with a comprehensive
collection of business impact assessments over the last years.

3. This question will need to be evaluated in the context of the review of the system.

4. The Commission agrees that it is important that BIAs are undertaken in respect of proposals that
could impose costs on enterprises, but the system in itself should not become an unnecessary burden
and a purely bureaucratic exercise. For these reasons BIAs should be limited to those proposals with a
significant impact on businesses.

5. More detailed guidance on BIAs is being considered and the work will be taken forward as part of the

review of the system.

6. A BIA is already required for all legislative proposals with a significant impact on business.

7. The new unit on (cid:145)Regulatory co-ordination (cid:129) simplification and impact of legislation on SMEs(cid:146)
became operational on 1st January 2000 and works in close co-operation with other directorates-
general responsible for bringing forward legislative proposals.

(1)

SEC(90) 2188.

(2000/C 225 E/192)

WRITTEN QUESTION P-2583/99

by Christopher Huhne (ELDR) to the Commission

(16 December 1999)

Subject: Travel insurance bundling

Is the Commission aware of the practice widespread in the United Kingdom, of travel agents bundling
insurance with travel packages? Practices which require consumers to purchase the travel agent(cid:146)s in-house

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Official Journal of the European Communities

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insurance with package holidays include travel agents offering so-called (cid:145)free insurance(cid:146) as part of the travel
package and tour operators refusing to confirm a holiday booking until the customer provides evidence of
an equivalent alternative policy. Is the Commission aware of such practices in other Member States, and
does it consider that such practices are compatible with EU law?

Answer given by Mr Byrne on behalf of the Commission

(2 February 2000)

The Commission has no specific information nor has it received complaints relating to the practices
mentioned by the Honourable Member.

The matter is, in Community law, regulated by Council Directive 90/314/EEC of 13 June 1990 on package
travel, package holidays and package tours (1). Article 4(1)(b) requires the organiser or retailer to provide
the consumer, in writing or any other appropriate form, with (cid:145)information on the optional conclusion of
an insurance policy to cover the cost of cancellation by the consumer or the cost of assistance, including
repatriation, in the event of accident or illness.(cid:146).

In case the practices referred to by the Honourable Member appeared prima facie to infringe upon the
implementing measures (cid:129) for example by
Directive(cid:146)s provisions as complemented by the national
imposing compulsory instead of optional
insurance (cid:129) it would appear appropriate that the issue be
taken up with the national authorities.

In addition, it would seem advisable for consumers confronted with dubious contractual arrangements to
contact a consumer organisation, with a view to assessing the legitimacy of the practices in question and
considering the most effective course of action.

With regard to competition law, the practice of making the sale of one product conditional upon the
purchase of another unrelated product, or (cid:145)tying(cid:146) as this is also known, can constitute an infringement of
the Community competition rules if the undertaking carrying out this practice enjoys a dominant position
on the market, or if the practice arises as a result of an agreement between undertakings. The Honourable
Member does not allege that travel agents in the United Kingdom have agreed among themselves to oblige
consumers to combine the purchase of insurance with a travel package, while the Commission has no
reason to believe that any travel agent or tour operator enjoys a dominant position in the United
Kingdom. Under these circumstances, there would appear to be no reason for the Commission to open
an investigation under the competition rules.

(1) OJ L 158, 23.6.1990.

(2000/C 225 E/193)

WRITTEN QUESTION E-2584/99

by Herbert B(cid:246)sch (PSE) to the Commission

(11 January 2000)

Subject: BSE pathogens in meat-and-bone meal

According to a report on 26 August 1999 on Swiss German language television, there is evidence that EU
provisions on the destruction of any BSE pathogens during the production of meat-and-bone meal were
disregarded in Switzerland up to the end of 1997.

The report indicates that the Swiss producers at that time were unable in purely technical terms to heat the
meat-and-bone meal as prescribed at pressure of 3 bar for 20 minutes at 133o C. Nonetheless, official
export papers were issued, on the basis of which thousands of tonnes of meat-and-bone meal were
exported from Switzerland into the EU area.