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PART 2
Compensation Body
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Authorisation of body as State’s compensation body for purposes of Act and Articles 10a and 25a of Directive
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5. (1) (a) Subject to paragraph (b), the body known as the Motor Insurers’ Bureau of Ireland is hereby authorised as the compensation body for the State for the purposes of this Act and Articles 10a and 25a of the Directive.
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(b) (i) Subject to paragraph (c) and subsection (5), the Minister may, where he or she is satisfied that it is in the interests of the effective and efficient performance of the Compensation Body’s functions in relation to the relevant purposes to do so, by order, authorise a body other than the Motor Insurers’ Bureau of Ireland to be the compensation body referred to in paragraph (a) with effect from a date specified in the order.
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(ii) The order may provide for such transitional arrangements as the Minister considers necessary or expedient to reflect such authorisation, including matters relating to—
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(I) the transfer of records, data and information,
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(II) the preparation of final accounts,
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(III) the continued performance, by the body ceasing to be the compensation body referred to in paragraph (a), of functions specified in the order in relation to the relevant purposes until a date, or an event, specified in the order, and
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(IV) such incidental, supplementary and consequential provisions as will assist the body becoming the compensation body referred to in paragraph (a) in performing its functions in relation to the relevant purposes.
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(c) The Minister may exercise his or her power under paragraph (b) in relation to a body authorised under that paragraph to be the compensation body referred to in paragraph (a) in such a way as to authorise a body other than the body first mentioned in this paragraph to be such competent body and paragraph (b) shall, with all necessary modifications, be construed accordingly.
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(d) The body for the time being authorised under this subsection to be the compensation body referred to in paragraph (a) shall, for the relevant purposes, be known as Comhlacht na hÉireann um Chúiteamh Mótair.
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(2) (a) Subject to paragraph (b), the Compensation Body shall provide compensation to injured parties resident in the State (and regardless of whether the accident concerned occurred in the State or another Member State) at least up to the limits of the MTPL insurance obligation, for damage to property or personal injuries caused by a vehicle insured by a relevant insurer, from the moment when the insurer is subject to a winding-up decision.
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(b) Paragraph (a) shall not prejudice the operation of section 3BA of the Act of 1964.
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(3) (a) The Compensation Body shall have the power to negotiate and conclude an agreement, for the performance of its functions in relation to the relevant purposes, in accordance with Articles 10a and 25a of the Directive, with one or more than one compensation body (other).
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(b) Where the Minister exercises his or her power under subsection (1)(b) to authorise a different body as the compensation body referred to in subsection (1)(a), that different body shall, in its capacity as the Compensation Body, be bound by the provisions of any agreement referred to in paragraph (a) which have any force or effect on or after that different body becomes such compensation body.
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(4) (a) Where there is a failure by the Compensation Body to perform one or more than one of its functions in relation to the relevant purposes, the Minister may, after having regard to—
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(i) the circumstances giving rise to the failure,
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(ii) the consequences if the failure is not remedied,
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(iii) the impact, or potential impact, of the failure on one or more than one injured party, and
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(iv) any proposal put to the Minister by the Compensation Body to remedy the failure,
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by notice in writing given to the Compensation Body, request that the Compensation Body perform the function or functions the subject of that failure within the period specified in the notice for the purpose, being a period reasonable in all the circumstances of the case.
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(b) The Compensation Body shall comply with a request given to it under paragraph (a).
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(5) (a) Subject to paragraph (b), the Compensation Body may, by notice in a form specified by the Minister for the purposes of this paragraph, make a request to the Minister to exercise his or her power under subsection (1)(b) to authorise a different body to be the compensation body referred to in subsection (1)(a).
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(b) Subject to paragraph (c), a request referred to in paragraph (a) shall specify a date, being a date not earlier than the second anniversary of the date on which the Minister receives the request, on which the Compensation Body wishes the Minister to comply with the request and, accordingly, the Minister shall comply with the request on the date so specified.
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(c) A request referred to in paragraph (a) shall not be construed to prejudice the generality of the Minister’s power under subsection (1)(b) and, accordingly, that power may be exercised, as the Minister thinks fit, before the date referred to in paragraph (b) specified in the request.
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(6) Any person who is or was a director, or other officer or employee, of the body for the time being authorised under subsection (1) as the compensation body referred to in subsection (1)(a) shall not be liable in damages for anything done, purported to be done or omitted to be done in such body’s performance of one or more than one of its functions in relation to the relevant purposes unless the act or omission is shown to have been done, purported to have been done or omitted to have been done, as the case may be, in bad faith.
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