EU takes Ireland to court over VHI's lack of compliance (Irish Times)

04 November 2011
The European Commission is taking Ireland to court for failing to implement an adequate regulatory regime to oversee State-owned health insurer VHI.

The commission, which has consistently threatened legal action over the issue, said it had decided to refer Ireland to the European Court of Justice (ECJ) over the exemption of the Irish Voluntary Health Insurance (VHI) board from certain rules on non-life insurance.

The VHI still benefits from an exemption from the general insurance supervisory regime established by two EU non-life insurance directives, even though the firm has expanded beyond the health insurance market. This discharges the company from meeting certain obligations its rivals in the non-life-insurance sector have, such as setting aside reserves for a minimum guarantee fund and meeting solvency levels.