S.L. 403.25 Art. 36Subrogation in favour of the Protection and Compensation Fund.

(1) Where the Protection and Compensation Fund has provided compensation to an injured party resident in Malta and the policyholder of the vehicle causing the injuries is insured by a

European insurance undertaking which is subject to bankruptcy, winding up proceedings or any other equivalent proceedings, the said Fund shall be subrogated in the rights of the injured party against the person who caused the accident or the said European insurance undertaking:

Provided that such subrogation shall not take place with respect to rights against the policyholder or other injured person who caused the accident in so far as the liability of the policyholder or of the injured person would be covered by the European insurance undertaking subject to bankruptcy, winding up proceedings or any other equivalent proceedings in accordance with applicable national law:

Provided further that, to the extent that the European compensation body shall reimburse the Protection and Compensation Fund in terms of Articles 10a(10) or 25a(10), as the case may be, of the Motor Insurance Directive, the right of subrogation shall be assigned to the European compensation body, for any such sum so reimbursed.

(2) Any subrogation made by a European compensation body in pursuance of Articles 10a(10) and 25a(10) of the Motor Insurance Directive, shall be acknowledged and recognised by the Protection and Compensation Fund.