ECJ Case 82/10 VHI Derogation from Third Non Life Directive. Receipt of Formal Notice from the European Commission

27 February 2012

The Department will continue to work with the Commission to progress a range of issues relating to the legal status of the VHI. It is making good progress in relation to these and will press ahead with them as planned.

The European Commission has just issued the State with a Letter of Formal Notice under Article 260 TFEU.

This follows the European Court of Justice’s judgement against Ireland on 29 September 2011 which found that the State had failed to apply EU law relating to non-life insurance equally to all insurance undertakings. The effect of the ruling is that VHI can no longer benefit from a derogation from the requirement to be authorised by the Central Bank of Ireland (CBI). In response to this judgement on 29 September 2011, the Government agreed to:

The Letter of Formal Notice now received is a procedural notification that the Commission is obliged to issue within six months of a judgement. The letter had been expected and the Department has been in regular contact with the Commission in relation to the case.

The Department will continue to work with the Commission to progress a range of issues relating to the legal status of the VHI. It is making good progress in relation to these and will press ahead with them as planned.

Dr James Reilly, Minister for Health will now consider the terms of the Formal Notice in the normal way and respond to the Commission within the two month period given by it.