Wednesday, 5 October 2011

Withdrawal from car insurance after having an accident

The European Commission started an action against Italy for incorrect implementation of the Directive 2002/65/EC concerning the distance marketing of consumer financial services. This Directive applies to situations in which consumers buy a service e.g. from a credit card company, an investment fund, an insurance company etc. over the internet of by telephone etc. Article 6 gives consumers a right to withdraw from such a contract within 14 calendar days of its conclusion. However, Italy has an exception to this right of withdrawal in its law. Namely, when a consumer concludes a car insurance contract he may not withdraw from it if within these 14 initial days an accident covered by the insurance policy has taken place. After having been informed by the European Commission of the non-compliance Italy agreed to adjust this rule, but the time for this has lapsed by now (see: Distance marketing of financial services: Commission refers Italy to the Court of Justice).

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