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MP slams insurance premium ruling

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An MP has slammed a European court ruling stating car insurance premiums should not be determined by gender.

Mark Hoban, financial secretary to the Treasury, said the decision by the European Court of Justice that could end female-only car insurance premiums "goes against the grain" of a common-sense approach to equality.

According to the Association of British Insurers, the new regulations could see women under the age of 25 face an increase in their car and van insurance costs by 25%.

The MP has confirmed that the new European rules trying to put an end to the use of gender in determining premiums will apply on policies taken out only on or after December 21, 2012.

In light of the decision, Mr Hoban said he will consult on changes to the UK Equality Act.

He also added that he would seek "legal certainty" regarding the ruling and would pursue an amendment to the European Commission's Gender Directive.

© Press Association 2011