Biba has welcomed the European Commission's decision to launch proceedings against the 10 EU member states yet to implement the Insurance Mediation Directive.

The Commission has sent “reasoned opinions” to the countries which have yet to adopt the directives nearly 10 months after the 15 January 2005 deadline.

Countries which have failed to adopt the directive are: Belgium, France, Germany, Greece, Italy, Luxembourg, Malta, the Netherlands, Portugal and Spain.

Delays in adopting national legislation in accordance with the directive are creating legal uncertainty and confusion over insurance brokers' rights to operate in other EU countries, according to Biba.

Biba claims that European Court of Justice rulings mean it is likely that brokers can claim damages directly from governments if they are not able to operate in other EU countries and consumers can also claim damages from governments for not being protected by the directive.

Steve White, Biba regulation and compliance manager, said: “We wholeheartedly applaud the decision taken by the EU Commission. The UK insurance industry has already fully implemented the IMD and at Biba we are heartened by the Commission's hard stance on members who are dragging their heels.”