Directive 2006/112/EC1 provides for the exemption, not simply of insurance services, but also of 'related services performed by insurance brokers and insurance agents'2.
The wording has been incorporated into UK legislation (following the Card Protection Plan case referred to in V4.122), in the following form3:
'The provision by an insurance broker or insurance agent of any of the services of an insurance intermediary in a case in which those services—
(a) are related (whether or not a contract of insurance or reinsurance is finally concluded) to an insurance transaction or a reinsurance transaction; and
(b) are provided by that broker or agent in the course of his acting in an intermediary capacity.'
It is worth emphasising the point that the intermediary's service may be exempt even though no contract of insurance subsequently materialises.
The UK wording appears to add little to the clarity of the EU legislation, and the tendency of the courts has been to go direct to EU legislation. In Century Life v C & E Comrs4, Jacob J said
'there is common ground that the effect of the United Kingdom domestic legislation is the same as that of the Sixth Directive [now Directive 2006/112/EC] and intended to implement it. One wonders why a draftsman implementing a directive or other international treaty provides his own elaborate language attempting to set out what the implemented law is supposed to be.'
It can be seen that, rephrasing UK legislation, the services of an insurance intermediary are exempt provided