WRITTEN QUESTION E-2367/02 by Ioannis Souladakis (PSE) to the Commission. Illegal increases in insurance premiums.
Date: 2002-08-02
Institutions: European Parliament, Provisional data
Subjects: consumer protection, financial legislation, fixing of prices, insurance company, insurance premium

C 51 E/4

Official Journal of the European Union

EN

26.2.2004

(2004/C 51 E/004)

WRITTEN QUESTION E-1583/02

by Gerhard Schmid (PSE) to the Commission

(4 June 2002)

Subject: Recognition of German notarial documents in Spain

It is my understanding that Spanish authorities repeatedly refuse to register deeds from German notaries
with the Spanish Property Registry. The authorities refer in such cases to Resolution 3a (cid:1) Expte 166/99-B
of 15 March 2002 of the Spanish Ministry of Justice (Ministerio de Justicia, Secretaria de Estado de Justicia,
Dirección General de los Registros y del Notariado).

1.

2.

3.

Is the Commission aware of this situation?

Does it infringe European legislation?

If so, what action does the Commission intend to take to rectify the situation?

Supplementary answer
given by Mr Bolkestein on behalf of the Commission

(5 November 2002)

After writing to the Spanish authorities, the Commission has received information from them that can be
summarised as follows.

There are no formal requirements for transfers of ownership of property in Spain.

Registration of property ownership is voluntary in Spain, but highly recommended by the authorities as
such registration provides publicity in relation to third parties.

Registration of a document established in Spain requires that the document is certified with ‘public faith’
(Escritura Publica). Since 1999, in accordance with the Royal Decree 664/1999, Spanish authorities also
register deeds from other Member States if they are certified with ‘public faith’ from the Member States in
question or otherwise fulfil the requirements for registration in those Member States.

The Spanish authorities require deeds from Germany to be certified by a German notary as this is a formal
requirement under German law for registration of a document in Germany. Private documents from
Germany without notary certification or otherwise ‘public faith’ cannot be registered in Spain.

To summarise, according to the information received from the Spanish authorities, there is no evidence
that Spanish authorities repeatedly refuse the registration of notary deeds from Germany. On the contrary,
the Royal Decree in question provides for the registration of notary deeds from Germany.

Accordingly,
restriction of the freedom to provide services (Article 49 of the EC Treaty) in Spain.

the Commission concludes that

the information now received does not

indicate any

(2004/C 51 E/005)

WRITTEN QUESTION E-2367/02

by Ioannis Souladakis (PSE) to the Commission

(2 August 2002)

Subject: Illegal increases in insurance premiums

Insured persons have complained recently that private insurance companies have introduced excessive
increases in their insurance premiums by reformulating the terms of insurance contracts. The insurance
companies justify these excessive increases by arguing that they are the result of a more general crisis
affecting the stock market and investments.

26.2.2004

EN

Official Journal of the European Union

C 51 E/5

Since the policy of privately insuring European citizens is constantly gaining ground and is replacing
public medical care and insurance services, will the Commission say:

1. Has it taken any measures to protect insured persons from arbitrary indexing practices by insurance

companies?

2. Has it made any provision for the implementation of common frameworks for insurance conditions in

contracts so as to protect insured persons in Europe?

Answer given by Mr Bolkestein on behalf of the Commission

(17 September 2002)

As the Honourable Member may know financial services companies, including insurance, are subject to the
principle of freedom of contract. The Commission does not in principle intervene in the insurance markets
nor interfere in the fixing of prices.

It seems that the aftermath of 11 September 2001 led to increases in reinsurance costs and consequently
increases in direct insurance premiums for a number of insurance products. Also the general downturn in
markets has reduced insurers’ investment returns and has increased pressure on prices. An unfavourable
investment climate means the return on investment of premium is reduced. The Commission makes every
effort to improve the efficiency of the internal insurance market. Its plans are set out in the Financial
Services Action Plan. It is persuaded that increased competition should help the consumer to find lower
prices as well as a wider choice of products.

Excessive prices may raise concern under the Community competition rules where they are imposed by a
dominant company. The Commission may also intervene if insurance companies have agreed or colluded
to fixed prices. However, similar price increases are not necessarily a sign of collusion, but might be a
rational individual response by each insurer to changes in external circumstances. For any intervention,
any allegation of collusion would need to be substantiated with evidence.

The concrete kind of practices of arbitrary indexing of prices by insurance undertakings to which the
Honourable Member refers is not clear for the Commission. Nevertheless, it should be noted that any
clause in an insurance contract which could be considered as abusive for the consumer would fall within
the scope of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in cousumer contracts (1).

(1) OJ L 95, 21.4.1993.

(2004/C 51 E/006)

WRITTEN QUESTION P-2420/02

by Marco Cappato (NI) to the Commission

(8 August 2002)

Subject: Further humanitarian aid for North Korea

The Commission has recently decided to extend humanitarian aid for North Korea by earmarking a further
EUR 4 175 million from the ECHO budget in order to fund basic health care structures in that country.
Meanwhile, the international press is increasingly reporting the alarming news that the North Korean
regime has been misappropriating humanitarian aid and using it to strengthen its military and police
forces.

What measures has the Commission taken to verify that humanitarian aid is not being used for the upkeep
of the repressive machinery of the Pyongyang regime?