Cap. 104 Art. 4Requirements in respect of policies.

(1) In order to comply with the requirements of this

Ordinance, a policy of insurance in respect of the use of a motor vehicle which is normally based in Malta or in the territory of a designated State must, in addition to being a policy of insurance defined in article 2, cover:

(a) any civil liability up to such liability, if any, as the

Minister responsible for transport with the concurrence of the Minister responsible for finance may from time to time prescribe by regulations under this article, which may be incurred in respect of the death of or bodily injury to any person, including all passengers (other than the driver), or damage to any may from time to time prescribe by regulations under this article, caused by the motor vehicle in the territory of a designated State, according to the law in force in that designated State; and

(c) any loss or injury up to such liability, if any, as the Minister responsible for transport with the concurrence of the Minister responsible for finance may from time to time prescribe by regulations under this article, caused by the motor vehicle which is suffered by a Maltese national or a national of a designated State during a direct journey between Malta and the territory of a designated State or between the territories of two designated States, if there is no foreign bureau responsible for the territory which is being crossed: Provided that such a policy of insurance shall not be required to cover:

(i) liability for such damage to third party property as may be prescribed by regulations made by the Minister responsible for Transport under this article; or

(ii) liability for damage to goods carried for hire or reward in or on the vehicle or in or on any trailer (whether or not coupled) drawn by the vehicle; or

(iii) any liability for damage to third-party property on or in the insured motor vehicle or in the possession of the person insured; or

(iv) any contractual liability.

(1A) A policy of insurance in respect of the use of a motor vehicle which is normally based in Malta or in the territory of a designated State shall cover, on the basis of a single premium and during the whole term of the contract, the entire territory of Malta and all designated States, including for any period in which the vehicle remains in other designated States during the term of the contract, and guarantee, on the basis of the same single premium:

(a) in Malta, the cover required under this Ordinance; and

(b) in each designated State, the cover required by the law of that State or the cover required by the law of the State in the territory of which the vehicle is normally based if that cover is higher.

(1B) Where any payment is to be effected by an authorized insurer under a policy issued under this Ordinance, the authorized insurer shall not demand the payment of any excess as a condition to effect payment to the injured party and an authorized insurer shall not deduct any amounts to the injured party in the event that on a road, and the person who has so died or been bodily injured has to the knowledge of the authorized insurer received treatment in a hospital in respect of the fatal or other bodily injury so arising, there shall also be paid by the authorized insurer to such hospital the expenses reasonably incurred by the hospital in affording such treatment, to an amount not exceeding fifty-eight euro and twenty-three cents (58.23) for each person so treated.

For the purposes of this subarticle the expression "hospital" means an institution which provides medical or surgical treatment for in-patients.

(3) A person issuing a policy of insurance under this article shall be liable to indemnify the persons or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of persons.

(4) A policy of insurance shall be of no effect for the purposes of this Ordinance unless and until there is issued by the authorised insurer in favour of the person by whom the policy is effected a certificate (hereinafter referred to as a "certificate of insurance") in the prescribed form; and where the policy of insurance consists of an international certificate of insurance, such international certificate shall, for all purposes of this Ordinance except where the context otherwise requires, be the certificate of insurance required to be issued under this subarticle.