Motor Insurance Insolvency Compensation Act 2024
|
Audit of certain completed claims | ||
|
16. (1) (a) Subject to paragraph (b) and subsection (5), the Agency shall, on an annual basis, carry out an audit of a sample of relevant claims where no further steps need to be taken under section 9 or 10 , as appropriate, by the Compensation Body in respect of such claims. | ||
(b) For the avoidance of doubt, it is hereby declared that paragraph (a) shall not apply to any year in which there are no relevant claims to which that paragraph can apply. | ||
(2) (a) Subject to paragraph (c), the Agency and the Compensation Body shall each have the power to negotiate and conclude an agreement in writing between them as to the timing and extent of audits referred to in subsection (1). | ||
(b) Subject to paragraph (c), the Agency and the Compensation Body may amend the agreement referred to in paragraph (a) by a further agreement in writing negotiated and concluded between them. | ||
(c) The Agency shall not conclude an agreement referred to in paragraph (a) or (b) except with the consent of the Minister. | ||
(3) (a) Subject to paragraph (b), the Agency shall, as soon as is practicable after it completes an audit referred to in subsection (1), prepare and give to the Minister a report in writing on the results of the audit, in particular as regards any matter that the Agency is satisfied should be brought to the attention of the Minister. | ||
(b) The report referred to in paragraph (a) shall include any matter, relating to one or more than one claim to which section 17 (1) applies, that the Agency is satisfied should be brought to the attention of the Minister. | ||
(c) The Minister may from time to time, by notice in writing given to the Agency, request the Agency to provide the Minister with such information relating to the performance of the Agency’s functions under this section as is specified in the notice and the Agency shall, as soon as is practicable after it has been given the notice, comply with that request. | ||
(4) (a) Paragraphs (b), (c) and (d) apply where— | ||
(i) an audit referred to in subsection (1) determines that moneys were paid by the Compensation Body in error, or | ||
(ii) an internal review conducted by the Compensation Body determines that moneys were paid by it in error. | ||
(b) The Compensation Body shall take such steps as it considers reasonable in all the circumstances of the case to recover such moneys. | ||
(c) The Compensation Body shall transmit to the Bank any moneys recovered pursuant to paragraph (b) as soon as is practicable after the Compensation Body receives such moneys. | ||
(d) The Bank shall pay moneys transmitted to it under paragraph (c) into the Fund and the MIIC Fund in the same proportions as moneys were advanced from them to pay the moneys the subject of the error concerned. | ||
(5) An audit referred to in subsection (1) shall also extend to the costs and expenses incurred by the Compensation Body in performing its functions in relation to the relevant purposes in the case of the relevant claims falling within the sample concerned. | ||
(6) In this section— | ||
“relevant claim” means— | ||
(a) a claim under section 9 , or | ||
(b) a claim under section 10 (1) or (3); | ||
“sample”, in relation to relevant claims, means any, or any combination, of the following: | ||
(a) relevant claims made within a specified period of time; | ||
(b) relevant claims in respect of which a payment was made; | ||
(c) relevant claims in respect of which no payment was made; | ||
(d) relevant claims in respect of which a payment was made pursuant to an order of a court. |