S.L. 403.13 Art. 16Claimsin the event of insolvency.

(1) Whenever an insurer is unable to meet its obligations, the Committee may, in respect of the said obligations arising from a claim under a policy of insurance covering a protected risk situated in Malta or a protected commitment where Malta is the country of the commitment, make payments out of the Fund, under and in accordance with the provisions of this Part, to a qualifying person.

(2) Payment shall also be made out of the Fund under this Part if the insolvent insurer, is at the time that it is unable to meet its obligations, servicing or running-off the business of insurance it was licensed to carry on under the Act.

(3) No payment shall be made out of the Fund under this Part unless the Committee is satisfied that the name of the insolvent insurer is struck off the register or the insolvent insurer is definitely wound up.

(4) For the purposes of these regulations, a person is a qualifying person in relation to an insolvent insurer if -

(a) he is an insured of the insolvent insurer eligible for protection under this regulation; or

(b) he is a person other than the policyholder to whom payment in respect of any sums falling due under the policy could have been made in accordance with the policy; or

(c) he is a person to whom the insolvent insurer is liable to pay any sum or other consideration in respect of the insured’s legal liability to such person under the policy of insurance.