Insurance Distribution (Exemption) Regulations, 2018

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,028, 20 ta’ Lulju, 2018 B 2367

L.N. 237 of 2018

INSURANCE DISTRIBUTION ACT

(CAP. 487)

Insurance Distribution (Exemption) Regulations, 2018

IN EXERCISE of the powers conferred by article 3(3) of the

Insurance Distribution Act, the Minister responsible for the regulation

of Financial Services, after consultation with the Malta Financial

Services Authority, has made the following regulations:-

(1) The title of these regulations is the Insurance Citation, scope

and

Distribution (Exemption) Regulations, 2018.

commencement.

(2) The purpose of these regulations is to transpose and

implement Articles 1(3), 1(4) and 2(2) of the Insurance Distribution

Directive, which shall be interpreted and applied accordingly.

These regulations shall come into force on the 1 st October

(3)

2018.

Any reference in these regulations to the Act is a reference Interpretation.

to the Insurance Distribution Act, and the provisions of article 2 of the Cap. 487.

Act shall also apply to these regulations.

A person carrying out insurance distribution activities on Exemptions of

an ancillary basis in relation to contracts of insurance shall be persons

out ancillary

exempted from the requirement of enrolment in terms of article 43E of insurance

intermediaries

the Act, if all the following conditions are satisfied

activities from

the provisions

of the Act.

(a) the contract of insurance is complementary to the

good or service supplied by the person, where such contract

covers

(i) the risk of breakdown, loss of, or damage to, the

good or the non-use of service supplied by that person; or

(ii) damage to, or loss of, baggage and other risks

linked to the travel booked with that person;

(b) without prejudice to paragraph (c), the amount of the

premium of the contract of insurance does not exceed six

hundred euro (€ 600) calculated on a pro rata annual basis; and

(c)

notwithstanding paragraph (b), where the contract of

insurance is complementary to a service referred to in paragraph

(a), and the duration of that service is equal to, or less than, three

months, the amount of the premium paid, per person, does not

exceed two hundred euro (€ 200).

(1) An authorised insurance undertaking, an enrolled

insurance agent or an enrolled insurance broker which has appointed

and registered an ancillary insurance intermediary which, pursuant to

regulation 3, is exempted from the requirement of enrolment in terms

of article 43E of the Act, shall require such ancillary insurance

intermediary to comply with the following requirements

(a) make information available to the client, prior to the

conclusion of the contract of insurance, about its identity and

address, and about the procedures allowing clients and other

interested parties to lodge complaints and the arrangements for

handling complaints concerning contracts of insurance by such

undertaking, agent or broker;

(b) have appropriate and proportionate arrangements in

place to comply with information and conduct of business

requirements set out in the applicable Conduct of Business

Rules, and to consider the demands and needs of the client before

the proposal of the contract; and

(c) provide to the client, prior to the conclusion of the

contract of insurance, the insurance product information

document, referred to in Conduct of Business Rules.

(2) The provisions of article 43E(11) of the Act shall apply

mutatis mutandis to an authorised insurance undertaking, an enrolled

insurance agent and an enrolled insurance broker which has appointed

and registered an ancillary insurance intermediary exempt from

enrolment pursuant to regulation 3.

The following activities shall not amount to insurance

distribution activities or reinsurance distribution activities

(a) the provision of information on an incidental basis in

the context of another professional activity where

(i) the provider does not take any additional steps

to assist the potential policyholder or policyholder in

concluding or performing a contract of insurance;

(ii) the purpose of that activity is not to assist the

potential policyholder or policyholder in concluding or

performing a contract of reinsurance;

(b) the management of claims of an authorised insurance

undertaking or of an authorised reinsurance undertaking on a

professional basis;

(c) loss adjusting and expert appraisal of insurance and

reinsurance claims;

(d) the carrying on of activities which are strictly limited

to effecting introductions either by means of

(i) the mere provision of data and information on

potential policyholders to insurance intermediaries or

reinsurance intermediaries enrolled under the Act,

authorised insurance undertakings or authorised

reinsurance undertakings; or

(ii) the mere provision of information about

insurance or reinsurance products, insurance intermediaries

or reinsurance intermediaries enrolled under the Act,

authorised insurance undertakings or authorised

reinsurance undertakings, to potential policyholders, where

the provider of such information does not take any

additional steps to assist in the conclusion of a contract of

insurance or a contract of reinsurance

Provided that, the activities referred to in

paragraph (d) are carried out in accordance with the

conditions set out in Insurance Distribution Rules made for

this purpose.

(1) For the better carrying out of these regulations, the Insurance

competent authority may, from time to time, issue Insurance Distribution

Rules and

Distribution Rules and Conduct of Business Rules.

Conduct of

Business Rules.

(2) Such Insurance Distribution Rules and Conduct of Business

Rules may contain such incidental, supplementary and consequential

provisions as appear to the competent authority to be expedient for the

purposes of these regulations.

The Insurance Intermediaries (Exemption) Regulations are Revocation of

the Insurance

hereby revoked.

Intermediaries

(Exemption)

Regulations.

€0.18