Cap. 403 Art. 49Establishment of the Protection and Compensation Fund.

(1) There shall be established a fund, as may be prescribed, which shall be known as the "Protection and Compensation

Fund":

(a) for the payment of any claims in respect of:

(i) risks and commitments against an insurance undertaking carrying on business of insurance in

Malta, as may be prescribed under the Insurance Business (Protection and Compensation Fund) Regulations, remaining unpaid by reason of the insolvency of such undertaking, subject to such limitations, restrictions and exclusions as may be prescribed by the said regulations; and

(ii) risks related to motor vehicle liability insurance business against an insurance undertaking carrying on motor vehicle liability insurance business from Malta, as may be prescribed in accordance with the Insurance Business (Protection and Compensation Fund) Regulations, remaining unpaid by reason of the insolvency of such undertaking, subject to such limitations, restrictions and exclusions as may be prescribed by the said regulations; and

(b) for the payment of compensation to victims of road traffic accidents as may be prescribed subject to such limitations and restrictions as may be prescribed.

(2) Without prejudice to the provisions of this Act and of any regulations issued thereunder, the Protection and Compensation Fund shall be a body corporate having a distinct legal personality and shall be capable of entering into contracts, whether of borrowing or if otherwise incurring indebtedness for the purposes of its functions, acquiring, holding and disposing of any kind of property for the purposes of its functions; of suing or being sued, doing all such matters and entering into all such negotiations, transactions and agreements as are incidental or conducive to the exercise or performance of its functions. Without prejudice to the generality of the foregoing, the Protection and Compensation Fund shall for this purpose have the power to enter into such reasonable administrative, management or other arrangements as may be necessary to enable it to fulfil its objectives and functions under this Act and under the Insurance Business (Protection and Compensation Fund) Regulations, including to become a party to the agreement referred to in regulation 10A of the Insurance Business (General Provisions of Supervision)

Regulations, and to delegate to any body or person any of its functions as the Management Committee appointed in accordance with the

Insurance Business (Protection and Compensation Fund) Regulations deems necessary.