Insurance (Amendment) Act 2018
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Amendment of section 3 of Act of 1964 (payments out of Fund) | ||
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10. Section 3 of the Act of 1964 is amended— | ||
(a) in subsection (2) by substituting “under subsection (1) or (5A)(d)” for “under subsection (1)”, | ||
(b) by substituting the following for subsection (3): | ||
“(3) The amount that the High Court may order to be paid to a person in respect of a sum due to the person under a policy shall not exceed the amount that remains due after the assets of the insurer in liquidation have been used to satisfy a portion of the sum otherwise due to the person under the policy.”, | ||
(c) by substituting the following for subsection (5): | ||
“(5) Where any sum referred to in subsection (1) relates to the liability of the insured to a third party (other than under a policy issued by an insurer in liquidation that is a vehicle insurer) the limitations prescribed by subsections (3) and (4) on payment out of the Fund apply to the sum required to meet the liability of the insured to that third party.”, | ||
(d) by inserting the following subsection after subsection (5): | ||
“(5A) (a) Where— | ||
(i) any sum referred to in subsection (1) relates to the liability of the insured to a third party under a policy issued by an insurer in liquidation that is a vehicle insurer, and | ||
(ii) the liquidator or, in the case of an insolvent insurer authorised in another Member State, the person who performs the equivalent functions to a liquidator in the Member State concerned, is appointed in respect of the vehicle insurer on or after 30 September 2011, | ||
then, the limitations prescribed by subsections (3) and (4) on payment out of the Fund shall not apply to the sum required to meet the liability of the insured to that third party. | ||
(b) In a case where paragraph (a) applies— | ||
(i) any amount approved under subsection (1) in respect of personal injuries shall be paid in full, and | ||
(ii) any amount approved under subsection (1) in respect of injury to property shall be limited to the sum specified in section 56 (2)(a) of the Road Traffic Act 1961 , applying at the time the event giving rise to the claim occurred. | ||
(c) Where, on or after the coming into operation of Part 3 of the Insurance (Amendment) Act 2018, a liquidator or, in the case of an insolvent insurer authorised in another Member State, a person who performs the equivalent functions to a liquidator in the Member State concerned, is appointed in respect of a vehicle insurer, any amount payable by virtue of this subsection, in excess of the limitation prescribed by subsection (4) on payment out of the Fund, shall be met by a payment out of the MIIC Fund to the Fund in accordance with section 3E(5). | ||
(d) In a case where paragraph (a) applies, where an amount was approved under subsection (1) and paid to a person out of the Fund before the coming into operation of Part 3 of the Insurance (Amendment) Act 2018, there may, with the approval of the High Court, be paid to the person out of the Fund such amount or amounts as that Court may authorise in respect of any sum that remains due to that person under the policy concerned after such coming into operation, together with the costs and expenses (if any) necessarily and reasonably incurred by the person in endeavouring to secure payment of the sum.”, | ||
(e) in subsection (6) by substituting “under subsection (1) or (5A)(d)” for “under subsection (1)”, and | ||
(f) by deleting subsection (7). |