Regulations, 2015

L.N. 405 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

Protection and Compensation Fund (Amendment)

Regulations, 2015

IN exercise of the powers conferred by articles 51 and 54 of the

Insurance Business Act, the Minister for Finance, after consultation

with the Malta Financial Services Authority, has made the following

(1) The title of these regulations is the Protection and

Compensation Fund (Amendment) Regulations, 2015, and these

regulations shall be read and construed as one with the Protection and

Compensation Fund Regulations, hereinafter referred to as ''the

principal regulations''.

(2) These regulations shall come into force on the 1st January

2016.

Regulation 2 of the principal regulations shall be amended

(a)

in sub-regulation (1) thereof

(i)

the definition ''the Authority'' shall be

deleted;

(ii) immediately after the definition ''business of

motor insurance'', there shall be inserted the following new

definition

'' ''competent authority'' means the Malta

Financial Services Authority established by

the Malta Financial Services Authority Act;'';

(iii) in the definition ''gross premiums''

(aa) for the words ''receivable by the

company under reinsurance contracts accepted by

the company but before deduction of premiums for

reinsurance ceded and before deduction of

commission payable by the company:'', there shall

be substituted the words ''receivable by the

insurance undertaking under reinsurance contracts

accepted by the undertaking but before deduction

of premiums for reinsurance ceded and before

deduction of commission payable by the

undertaking:''; and

(bb) in the proviso thereof, for the words

''which is a company whose head office is in a

country outside Malta, or a company whose head

office is in Malta and carries on business of

insurance in a country outside Malta,'', there shall

be substituted the words ''which is an undertaking

whose head office is in a country outside Malta, or

an undertaking whose head office is in Malta and

carries on business of insurance in a country

outside Malta,'';

(iv) for the definition ''insurer'', there shall be

substituted the following

'' ''insurer'' in relation to the Fund, means an

insurance undertaking authorised under the Act to

carry on in Malta long term business or general

business or an insurance undertaking which on the

date of coming into force of these regulations is

authorised thereunder to carry on both long term

business and general business whether or not such

business is, in each case, combined with business

of reinsurance but excludes an undertaking whose

business is restricted to reinsurance;''; and

(b) in sub-regulation (2) thereof, for the words ''shall

not apply to an authorised company which carries on solely and

exclusively business of reinsurance'', there shall be substituted

the words ''shall not apply to an authorised reinsurance

undertaking''.

In sub-regulation (1) of regulation 5 of the principal Amends

regulations, for the word ''Authority'', and wherever it appears regulation

the principal

throughout the principal regulations, there shall be substituted the regulations.

words ''competent authority''.

In sub-regulation (5) of regulation 6 of the principal Amends

regulations, for the words ''may issue an insurance rule'', there shall regulation

the principal

be substituted the words ''may issue Insurance Rules''.

regulations.

In sub-regulation (3) of regulation 7 of the principal

regulations, for the words ''until the company proves to the

satisfaction of the Authority'', there shall be substituted the words

''until the insurer proves to the satisfaction of the competent

authority''.

In sub-regulation (1) of regulation 8 of the principal

regulations, for the words ''of the gross premium income of the

company'', there shall be substituted the words ''of the gross premium

income of the undertaking''.

In paragraph (a) of regulation 18 of the principal

regulations, for the words ''at the time the company concerned ceased

to carry on such business'', there shall be substituted the words ''at the

time the undertaking concerned ceased to carry on such business''.

In sub-regulation (1) of regulation 23 of the principal

regulations, the definition ''company'' shall be deleted.

Regulation 30 of the principal regulations shall be

amended as follows

(a)

in the marginal note thereto, for the words ''to issue

insurance rules.'', there shall be substituted the words ''to issue

Insurance Rules.''; and

(b) in sub-regulation (1) thereof, for the words ''The

Authority may issue insurance rules'', there shall be substituted

the words ''The competent authority may issue Insurance

Rules''.

€0.27