S.L. 403.25 Art. 27Contributions to Fund B and Fund C.            S.L. 403.13.

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

(2) Fund B and Fund C shall have sufficient funds available to compensate injured parties when compensation payments are due under this Part in situations where:

(a) the insurer is subject to winding-up proceedings or any other equivalent proceedings, on or after the initiation COMPENSATION FUND)

date; or

(b) the European insurance undertaking, is subject to bankruptcy proceedings, winding up proceedings or any other equivalent proceedings, on or after the initiation date:

Provided that for the avoidance of doubt, in no case shall any claim against Fund B or Fund C be paid out, where any bankruptcy proceedings, winding up proceedings or any other equivalent proceedings of an insurer or of a European insurance undertaking, regardless of whether there was a declaration of insolvency or otherwise of such insurer or of such European insurance undertaking, were commenced before the initiation date.

(3) Subject to the provisions of the following sub-regulations, the Management Committee shall in every calendar year for the purpose of Fund B and Fund C, require:

(a) every insurer carrying on motor vehicle liability insurance business in Malta on and, or after the initiation date, to pay a contribution to Fund B, to be utilised exclusively for the payment of claims relating to motor vehicle liability insurance business carried on in Malta; and

(b) every insurer carrying on motor vehicle liability insurance business from Malta on and, or after the initiation date, to pay a contribution to Fund C, to be utilised exclusively for the payment of claims relating to motor vehicle liability insurance business carried on from Malta.

(4) Where an insurer is authorised to carry on motor vehicle liability insurance business both in Malta and from Malta, separate treatment shall be given to contributions paid by the insurer under this regulation with respect to motor vehicle liability insurance business:

(a) carried on in Malta, contributions shall be utilised exclusively for the payment from Fund B of claims relating to motor vehicle liability insurance business carried on in Malta; and

(b) carried on from Malta, contributions shall be utilised exclusively for the payment from Fund C of claims relating to motor vehicle liability insurance business carried on from Malta.

(5) Without prejudice to regulation 8, and subject to regulation 9, the amount every insurer shall in every calendar year be required to contribute under sub-regulation (3) shall be:

(a) where the contribution is made to Fund B, zero point five per centum (0.5%) of, and calculated by reference to, the gross premium income by the insurer, or where the insurer is not actively carrying on new motor vehicle liability insurance business or is subject to winding-up proceedings or any other equivalent proceedings, zero point one two five per centum (0.125%) of, and calculated by reference to, the technical provisions of the insurer, for the year ending last before the beginning of such calendar year in respect of class 10 in Part I of the Third Schedule to the Act in respect of risks situated in Malta;

(b) where the contribution is made to Fund C, zero point five (0.5%) of, and calculated by reference to per centum the gross premium income by the insurer, or where the insurer is not actively carrying on new motor vehicle liability insurance business or is subject to winding-up proceedings or any other equivalent proceedings, zero point one two five per centum (0.125%) of and calculated by reference to the technical provisions of the insurer, for the year ending last before the beginning of such calendar year in respect of class 10 in Part I of the Third Schedule to the Act in respect of risks situated outside of Malta.

(6) A sum not exceeding 5 (5%) from the total per centum amounts of respective contributions payable to Fund B and Fund C under sub-regulation (3), as may be determined by the Management Committee, shall be at the disposal of the Management Committee to meet ordinary expenses incurred by the administration of the said Funds, other than extraordinary expenses incurred in relation to the purposes specified in regulation 3(2)(b).

(7) Expenses incurred by Fund B and Fund C respectively, pursuant to, or in consequence of, regulation 3(2)(b) shall be paid out:

(a) in respect of Fund B, in relation to risks situated in Malta, from the contributions made in respect of motor vehicle liability insurance business carried on in Malta; and

(b) in respect of Fund C, in relation to risks situated outside of Malta, from the contributions made in respect of motor vehicle liability insurance business carried on from Malta.

(8) The contributions payable by every insurer in accordance with sub-regulation (3) shall be due on the first (1) day of July of each calendar year but may be paid on any working day during that month: COMPENSATION FUND)

Provided that the contribution due under sub-regulation

5(a), only to the extent of the first contribution payable in 2024 under these regulations, shall be fully due by the thirty first (31st) day of

December of the year two thousand and twenty four (2024). No part thereof shall be refundable. Notwithstanding, when calculating the amount of the contribution due under sub-regulation 5(a), account shall be had of any amounts that may have already been paid by the insurer to the Protection and Compensation Fund under regulation 7(5) of the Protection and Compensation Fund Regulations, when assessing the contributions due under regulation 17(5) and regulation 27(5)(a) of these regulations:

Provided further that for the purposes of the contribution due under sub-regulation 5(b), only to the extent of the first annual contribution payable in 2024 under these regulations, this shall be fully st due by the thirty first (31 ) day of December of the year two thousand and twenty four (2024). No part thereof shall be refundable.

(9) Any contribution payable under this regulation remaining unpaid by any insurer for any reason whatsoever, other than by reason of the insolvency of the insurer, shall be recoverable by the Protection and Compensation 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 the said regulations shall be deemed to be a reference to ''the Protection and Compensation Fund''.