Insurance companies in Cyprus required to issue policies to elderly drivers

The Parliament of Cyprus has unanimously supported an initiative by President Nikos Christodoulides to revise amendments to the motor insurance law. The decision was made to eliminate legal inconsistencies and introduce a transitional period that will allow the smooth implementation of the new rules.

What will change for drivers

The updated law is aimed at protecting elderly drivers from discrimination. Insurance companies will no longer be able to arbitrarily refuse to issue them a policy. In case of refusal, the insurer must provide a clear and justified explanation.

A total of 53 out of 56 MPs voted in favor of the changes, highlighting broad consensus on the issue. The law also increases transparency in the insurance sector and introduces additional guarantees of equal treatment for clients regardless of age.

An important part of the reform is the transitional period, which will allow both companies and clients to adapt to the new rules. Full implementation of the law is scheduled for January 1, 2027, with certain provisions being introduced gradually over four months. This approach is intended to reduce risks for the market and prevent abrupt changes in the operations of insurance companies.

Reasons for revising the law

The return of the law for revision was necessary to eliminate potential conflicts with constitutional provisions and to clarify its wording. At the same time, as MPs note, the core objective of the law remains unchanged — to protect citizens' rights and improve fairness in the insurance sector. Independent MP Alexandra Attalides emphasized that the adjustments make the law stronger and more practical, taking into account recommendations from the legal service.

During the discussions, it also emerged that some insurance companies had begun terminating contracts with elderly clients even before the law came into force. This raised concerns among MPs and reinforced the need for the swift introduction of clear rules. In the context of Cyprus’s aging population and the growing number of older drivers, such changes are seen as an important step toward protecting consumer rights and stabilizing the insurance market.

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