S.L. 403.13 Art. 7Contributions to the Fund.

(1) The contributions to the Fund to be made by insurers pursuant to article 50 of the Act are those prescribed by this regulation.

(2) Subject to the provisions of the following subregulations, the Committee shall in every calendar year -

(a) for the purpose of the Fund under regulation 3(1)(a):

(i) in so far as that purpose relates solely to general business, require every insurer carrying on in Malta general business, whether or not such business constitutes, in whole or in part, business of a protected risk, to pay a contribution to the Fund to be utilised exclusively for the payment of claims relating to protected risks situated in Malta;

(ii) in so far as that purpose relates solely to long term business, require every insurer carrying on in Malta long term business, whether or not such business constitutes, in whole or in part, business of a protected commitment, to pay a contribution to the Fund to be utilised exclusively for the payment of claims relating to protected commitments where Malta is the country of the commitment;

(b) for the purpose of the Fund under regulation 3(1)(b), require every insurer carrying on business of motor insurance in Malta, to pay, in addition to the contribution required to be made under paragraph (a) of this subregulation, a further contribution to the Fund, of such amount, and at such time or times, as the Committee may determine, taking into account the sums required, or expected to be required, for this purpose of the Fund, to be utilised exclusively for the payment of compensation relating to protected liabilities.

(3) The obligation to pay contributions under subregulation (2)(a)(ii) shall also apply to an insurer, other than an insolvent insurer which was licensed under the Insurance Business Act, 1981, repealed by the Act, or is authorised under the Act to carry on business of long term insurance, whether or not such business constitutes, in whole or in part, business of a protected commitment and which ceased to carry on that business and is carrying out servicing of that business, or which ceases to carry on that business and shall carry out servicing of that business. The obligation to pay contributions shall continue until the insurer proves to the satisfaction of the competent authority that it has no further liability arising from such business.

(4) Without prejudice to subregulation (3), where an insurer holds an authority on the date of coming into force of these regulations to carry on in Malta both long term business and general business, separate treatment shall be given to contributions paid by the insurer into the Fund under this regulation -

(a) in respect of long term business, to be utilised exclusively for the payment of claims relating to protected commitments where Malta is the country of the commitment;

(b) in respect of general business, to be utilised exclusively for the payment of claims relating to protected risks situated in Malta.

(5) Subject to the provisions of regulation 9, the amount every insurer shall be required to contribute under subregulation (2)(a) shall be:

(a) if the contribution is made under subparagraph (i) thereof, 0.125 of, and calculated by per centum reference to, the gross premium income by the insurer for the year ending last before the beginning of that calendar year in respect of general business;

(b) if the contribution is made under subparagraph (ii) thereof, 0.125 of, and calculated by per centum reference to, the gross premium income by the insurer for the year ending last before the beginning of that calendar year in respect of long term business effected after 30 June 1986: Provided that, the gross premium income shall exclude premiums which relate to the following classes of business of insurance:

(i) in respect of risks situated in Malta classes 4, 5, 6, 7, 11, 12, 14 and 15 in Part I of the Third Schedule to the Act;

(ii) in respect of commitments where Malta is the country of the commitment classes III, V, VI and VIII in the Second Schedule to the Act.

(6) A sum not exceeding 5 of the total amount of per centum contributions payable to the Fund under subregulation (2) as may be determined by the Management Committee shall be at the disposal of the Committee to meet ordinary expenses incurred by the administration of the Fund, other than extraordinary expenses incurred in relation to the purposes specified in regulation 3(1)(a).

(7) Expenses incurred by the Fund pursuant to, or in consequence of, regulation 3(1)(a) shall be paid out:

(a) in relation to protected risks situated in Malta, from the contributions made in respect of general business; and

(b) in relation to protected commitments where Malta is the country of the commitment, from the contributions made in respect of long term business.

(8) The contributions payable by every insurer under subregulation (2) shall be due on the first day of July of each calendar year but may be paid on any working day during that month.

(9) Any contribution payable under this regulation remaining unpaid by any insurer for any reason whatever, other than by reason of the insolvency of the insurer, shall be recoverable by the Fund from the insurer in the same manner as an administrative penalty is recoverable by the competent authority under the regulations made for the purposes of article 67(6) of the Act, and, in any such recovery, any reference to ''the competent authority'' made in those regulations shall be deemed to be a reference to ''the Fund''.