Insurance companies in Cyprus will no longer be able to turn down a customer for motor vehicle cover without providing a written explanation, under legislation accepted by the House of Representatives today by 53 votes.
The Motor Vehicles (Third Party Liability Insurance) (Amendment) Law 2026 prohibits insurers from arbitrarily and unjustifiably refusing to conclude insurance contracts and requires them to give any rejected customer a documented and clearly reasoned written justification for the refusal. The law is designed to prevent discriminatory practices and promote equal access to insurance.
The House did not vote on the law itself today but unanimously accepted a referral of it by President Nikos Christodoulides, who had sent it back to parliament over legal ambiguities and potential conflicts with constitutional principles, including the right to contract and the separation of powers. The law will now be revised before entering into force.
Bill proposer Alexandra Attalides urged MPs to accept the referral, stressing that it does not challenge the substance or aim of the law but focuses on issues of clarity, practical implementation and constitutional balance. “We want it to be implemented correctly and to protect citizens from discrimination,” she said.
Some provisions of the revised law will take effect within four months, with the remainder entering into force from 1 January 2027. During the transitional period the law’s provisions will be limited to existing insured persons.