Motor Insurance Insolvency Compensation Act 2024
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Section 3 and Act of 2024 | ||
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27. The Act of 1964 is amended by the insertion of the following section after section 3B: | ||
“3BA. (1) Where— | ||
(a) a claim is presented under section 9 of the Act of 2024, or | ||
(b) a claim is presented under section 10 (3) of the Act of 2024, | ||
the provisions of section 3 shall not apply to the claim or to the payment of a sum (if any) out of the Fund consequential to such claim. | ||
(2) Subject to subsection (4), the total amount that may be paid out of the Fund under section 6 (1) of the Act of 2024 in respect of any sum due to a person under a policy shall not exceed (whether as one payment or as the total of a series of payments) 65 per cent of that sum, or €825,000, whichever is the less. | ||
(3) Where a sum is due to a person under a policy by reason of a periodic payments order, the limitation prescribed by subsection (2) on payment out of the Fund shall not apply to the sum required to meet the liability of the insured under the periodic payments order. | ||
(4) (a) Paragraph (b) applies where— | ||
(i) any compensation referred to in section 6 (1) of the Act of 2024 relates to the liability of the insured to a third party under a policy issued by a relevant insurer in respect of risks in the State issued by an insurer (domestic), and | ||
(ii) a liquidator is appointed in respect of the insurer (domestic). | ||
(b) (i) Any compensation referred to in section 6 (1) of the Act of 2024 in respect of the MTPL insurance obligation in relation to personal injuries shall be paid in full. | ||
(ii) Any compensation referred to in section 6 (1) of the Act of 2024 in respect of injury to property shall be limited to the sum specified in section 56 (2)(a) of the Road Traffic Act 1961 , applying at the time the event giving rise to the claim occurred. | ||
(c) Where a liquidator is appointed in respect of an insurer (domestic), any amount payable by virtue of this subsection in respect of risks in the State, in excess of the limitation prescribed by subsection (2) on payment out of the Fund, shall be met by a payment out of the MIIC Fund to the Fund in accordance with section 3E(5). | ||
(5) An amount due to a body corporate or unincorporated body of persons may not be paid out of the Fund under section 6 (1) of the Act of 2024 unless the sum is due in respect of the liability of the body to an individual or in respect of the liability of an individual to that body. | ||
(6) In this section, ‘periodic payments order’ has the same meaning as it has in Part IVB of the Civil Liability Act 1961 .”. |