Cap. 104 Art. 9BProvisions as to claims representatives.

(1) An authorized insurer shall appoint a claims representative in every designated State, which claims representative shall handle and settle claims arising from an accident in the cases referred to in article 9A(1):

Provided that the accident from which the claim arises is caused by the use of a motor vehicle which is insured through an establishment in Malta or a designated State and is normally based in Malta or the territory of a designated State, and that the injured party is not resident in Malta or in the establishment’s State or in the State where the vehicle is normally based.

(2) An authorized insurer shall choose its claims representative at its own discretion: Provided that the claims representative shall:

(i) be resident or established in the designated State where he is appointed; and

(ii) be capable of dealing with cases in the official language or languages of the designated State of residence of the injured party.

(3) The claims representative shall, in relation to the claims referred to in subarticle (1), collect all information necessary in connection with the settlement of the claims and shall take the measures necessary to negotiate a settlement of claims.

(4) The authorized insurer shall take all necessary measures to vest the claims representative with sufficient powers to represent the authorized insurer in relation to injured parties in the cases referred to in subarticle (1) and to meet their claims in full.

(5) The requirement of appointing a claims representative shall not preclude the right of the injured party or his insurance the accident or to its claims representative:

(a) in cases where liability is not contested and the damages have been quantified, the authorized insurer of the person who caused the accident or his claims representative is required to make a reasoned offer of compensation; or

(b) in cases where liability is denied or has not been clearly determined or the damages have not been fully quantified, the authorized insurer to whom the claim for compensation has been addressed or his claims representative is required to provide a reasoned reply to the points made in the claim, in either case within three months of the date when the injured party presented his claim.

(7) If no offer or reply such as referred to in subarticle (6) is made within the three-month time limit, the authorized insurer of the person who caused the accident shall be liable to a penalty not exceeding eleven thousand and six hundred and forty-six euro and eighty-seven cents (11,646.87), payable to the Protection and Compensation Fund, as may be prescribed, such penalty to be receivable as a civil debt by the said fund. If an offer such as is referred to in subarticle (6)(a) is not made within the three-month time limit, interest shall be payable by the authorized insurer on the amount of compensation offered or awarded by the Court to the injured party: provided that, if interest is due it shall commence to run from the date that the claim is presented by the injured party, until the date compensation is received by the injured party concerned, and in any case the insurer shall be liable to pay interest on the difference in the amount between the offer of compensation made under subarticle (6) and the amount actually received by the injured party.

(8) The aforementioned provisions are not intended to, or do not restrict any rights which the injured party, or its authorized insurer or insurance undertaking as the case may be, may have or which would enable such persons to begin legal proceedings against the person causing the accident or that person’s authorized insurer or insurance undertaking as the case may be.

(9) The appointment of a claims representative shall not in itself constitute the opening of a branch within the meaning of paragraph (b) of Article 1 of Directive 92/49/EEC and the claims representative shall not be considered an establishment within the meaning of paragraph (c) of Article 2 of Directive 88/357/EEC or an establishment within the meaning of Regulation (EC) No. 44/ 2001. from which the claim arises is caused by the use of a motor vehicle which is insured through an establishment in a designated State, and is normally based in the territory of a designated State.

(2) An injured party resident in Malta may present a claim to the compensation body:

(a) if, within three months of the date when the injured party presented his claim for compensation to the insurance undertaking issuing the policy of insurance in respect of the use of the motor vehicle which caused the accident or its claims representative, the insurance undertaking or its claims representative has not provided a reasoned reply to the points made in the claim; or

(b) if the insurance undertaking issuing the policy of insurance in respect of the use of the motor vehicle which caused the accident has failed to appoint a claims representative in Malta. Provided that, an injured party may not present a claim to the compensation body if he has presented a claim for compensation directly to the insurance undertaking and if he has received a reasoned reply within three months of presenting the claim: Provided that an injured party may not present a claim to the compensation body if he has taken legal action directly against the insurance undertaking.

(3) The compensation body shall take such action as may be prescribed by regulations made by the Minister responsible for Transport under this article, within two months of the date when the injured party presents a claim for compensation to it but shall terminate its action if the insurance undertaking, or its claims representative, subsequently makes a reasoned reply to the claim.

(4) The compensation body shall immediately inform:

(a) the insurance undertaking of the motor vehicle the use of which caused the accident or its claims representative;

(b) the compensation body in the designated State of the insurance undertaking’s establishment which issued the policy;

(c) if known, the person who caused the accident, that it has received a claim from the injured party and that it will respond to that claim within two months of the presentation of that claim.

(5) The payment of compensation shall be subject to such limitations and restrictions as may be prescribed by regulation made under subarticle (3). The compensation body shall not make the payment of compensation conditional on the injured party's compensation from the compensation body in the designated State of the insurance undertaking’s establishment which issued the policy of insurance, the latter body shall be subrogated to the injured party in his rights against the person who caused the accident or his insurance undertaking in so far as the compensation body in Malta has provided compensation for the loss or injury suffered.

(7) If an authorized insurer in Malta issued the policy of insurance in respect of the use of the motor vehicle which caused the accident in the cases referred to in article 9B(1), the compensation body in the injured party’s designated State of residence which has compensated such injured party shall be entitled to claim reimbursement of the sum paid by way of compensation from the compensation body in Malta, in which case the latter body shall be subrogated to the injured party in his rights against the person who caused the accident or his authorized insurer in so far as the compensation body in the injured party’s designated State of residence has provided compensation for the loss or injury suffered.