Motor Insurance Insolvency Compensation Act 2024
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Amendment of section 2 of Act of 1964 | ||
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25. Section 2 of the Act of 1964 is amended— | ||
(a) in subsection (6), by the insertion of the following paragraphs after paragraph (f): | ||
“(fa) any sums paid to the Compensation Body— | ||
(i) during the course of the winding-up proceedings of a relevant insurer, or | ||
(ii) by virtue of the exercise by the Compensation Body of the rights and remedies referred to in section 11 (1) or (3) of the Act of 2024, | ||
to the extent that such sums are paid to the Compensation Body by virtue of the Compensation Body having paid the relevant amount within the meaning of section 9 of the Act of 2024, | ||
(fb) sums transmitted to the Bank pursuant to section 14 (2) of the Act of 2024, | ||
(fc) unless otherwise specified in circumstances set out in regulations made under section 2A(1), contributions referred to in that section,”, | ||
(b) in subsection (7)— | ||
(i) in paragraph (a)(ii), by the insertion of “and the Act of 2024” after “this Act”, | ||
(ii) by the insertion of the following paragraphs after paragraph (a): | ||
“(aa) sums to meet the costs and expenses necessarily incurred by the MIBI, on or after 1 January 2023 up to the date of the commencement of section 5 (1) of the Act of 2024, in preparing itself to become the Compensation Body, | ||
(ab) subject to subsection (7A), sums to meet the costs and expenses incurred by the Compensation Body in performing its functions in relation to the relevant purposes,”, | ||
and | ||
(iii) in paragraph (c), by the insertion of “and section 6 (1) and (2) of the Act of 2024” after “this Act”, | ||
(c) by the insertion of the following subsection after subsection (7): | ||
“(7A) (a) The costs and expenses which fall within subsection (7)(ab) (which may include the costs and expenses incurred in contesting a claim) shall be determined by reference to an agreement in writing negotiated and concluded between the Minister and a body proposed to be authorised under section 5 (1) of the Act of 2024 as the compensation body referred to in section 5 (1)(a) of that Act. | ||
(b) The Minister and the Compensation Body may amend the agreement referred to in paragraph (a) by a further agreement in writing negotiated and concluded between them.”, | ||
and | ||
(d) in subsection (8)— | ||
(i) in paragraph (a), by the substitution of “Subject to paragraph (aa), the Bank”, for “The Bank”, and | ||
(ii) by the insertion of the following paragraphs after paragraph (a): | ||
“(aa) The Bank shall cause the abstract and report referred to in paragraph (a) to be prepared in such a way that the provisions of the abstract and of the report relating to the Compensation Body are readily identifiable as such. | ||
(ab) The Bank may, for the purposes of performing its functions under this subsection, by notice in writing given to the Compensation Body, request the Compensation Body to provide the Bank with such information as the Bank may reasonably require for those purposes and the Compensation Body shall, as soon as is practicable after it receives the notice, comply with that request.”. |