Car leasing companies have warned they will stop offering
personal accident insurance if stricter European regulation is
pushed through, it was reported.
Leasing companies, along with rental companies, are currently
exempt from Financial Services Authority (FSA) regulation when
selling personal accident insurance (PAI) over the counter.
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The European Commission (EC) is currently seeking views from the
leasing industry, as well as the rental industry, which would also
be affected, and this could lead to a consultation later in 2010 to
look at making PAI subject to FSA rules.
The British Vehicle Renting and Leasing Association (BVRLA) has
reportedly said a survey of its trade body members showed they
would drop PAI under stricter regulation.
Tough lobbying on the reforms from BVRLA is on the cards in
Europe.
The EC has said there is too much variation in regulation of
leasing and rental cars in Europe, running contrary to the ideal of
a single market.
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By GlobalData
