S.L. 403.25 Art. 3Establishment of the Protection and Compensation Fund.

(1) The Protection and Compensation Fund shall consist of different funds as may be prescribed by these regulations, and of all contributions made thereto and of all other assets and revenues pertaining to it. Without prejudice to the proviso to regulation 6(3), the assets of every fund shall be kept separate and separately identifiable from the assets of the other funds. The assets and liabilities of each fund shall be treated for all intents and purposes of law as a patrimony separate from the assets and liabilities of each of the other funds. The liabilities incurred in respect of each fund shall be paid out from the assets forming part of the patrimony of the said fund. No creditor shall seek, whether in any proceedings or by any other means whatsoever, to attempt to use any assets attributable to any one fund to satisfy the liability which is not attributable to such fund.

(2) The purposes of the Protection and Compensation Fund shall be:

(a) for the payment of any claims in respect of risks situated in Malta, excluding the payment of claims of motor vehicle liability insurance business made on or after the initiation date, and of commitments where Malta is the country of the commitment, in the amounts prescribed by these regulations against an insurer, remaining unpaid by reason of the insolvency of such insurer;

(b) for the payment of any claims in respect of risks relating to motor vehicle liability insurance business, whether such business is carried on in Malta or from Malta, against an insurer, remaining unpaid by reason of insolvency of such insurer;

(c) for the payment of compensation to victims of road traffic accidents in circumstances prescribed by these regulations.

(3) For the purposes of sub-regulation (2):

(a) Parts III and IV make provision with respect to payment of claims in the event of an insolvent insurer; and

(b) Part V makes provision with respect to compensation to victims of road traffic accidents.

(4) There shall hereby be prescribed:

(a) in relation to Fund A in Part III:

(i) in respect of risks situated in Malta, the following classes or part classes specified in Part I of the Third Schedule to the Act as a protected risk, in classes or part classes 1 where the insured is an individual, in classes or part classes 2, 3, 8, 9, 10, 13, 16, 17 and 18, and shall exclude class 10 as from the initiation date;

(ii) in respect of commitments where Malta is the country of the commitment, classes I, II, IV, VII and IX specified in the Second Schedule to the Act as a protected commitment;

subject, in each case, to such limitations and restrictions prescribed by such Part; COMPENSATION FUND)

(b) in relation to Fund B in Part IV, in respect of risks situated in Malta, in class 10 as specified in Part I of the Third Schedule to the Act as a protected risk carried on by an insurer in Malta on or after the initiation date;

(c) in relation to Fund C in Part IV, in respect of risks situated outside Malta in class 10 as specified in Part I of the Third Schedule to the Act carried on by an insurer from Malta on or after the initiation date;

(d) in relation to Fund D in Part V, any civil liability to any person who is required to be covered by a policy of insurance under compulsory insurance legislation as a protected liability, subject to such limitations and restrictions prescribed by such Part.