European Communities (Non-Life Insurance) (Amendment) Regulations, 1992

• Jurisdiction: Ireland
• Citation: IR SI 244/1992

S.I. No. 244 of 1992.

EUROPEAN COMMUNITIES (NON-LIFE INSURANCE) (AMENDMENT) REGULATIONS, 1992.

I, DESMOND O'MALLEY, Minister for Industry and Commerce, in exercise of the powers conferred on me by section 3 of the European Communities Act, 1972 (No. 27 of 1972), and for the purpose of giving effect to Council Directive No. 90/618/EEC of 8 November, 1990, hereby make the following Regulations: 1. (1) These Regulations may be cited as the European Communities (Non-Life Insurance) (Amendment) Regulations, 1922 and shall come into operation on the 20th day of November, 1992.

(2) These Regulations shall be construed as one with the Principal Regulations, as amended. 2. (1) In these Regulations:

"the Principal Regulations" means the European Communities (Non-Life Insurance) Regulations, 1976 (S.I. 115 of 1976);

"the Regulations of 1991" means the European Communities (Non-Life Insurance) (Amendment) (No. 2) Regulations, 1991 (S.I. 142 of 1991);

"the Directive" means EEC Council Directive 90/618/EEC1;

"the second Directive" means EEC Council Directive 88/357/EEC2;

"the Minister" means the Minister for Industry and Commerce;

"a third country" means a country which is not a Member State;

"the Declined Cases Agreement" means the Agreement made on the 18th day of June, 1981 between the Minister of the one part and each of those insurance companies and members of the Underwriting Syndicates at Lloyds who carry on motor vehicle insurance business in the State.

1 O.J. No. L 330, 29.11.1990, p. 44.

2 O.J. No. L 172, 4.7.1988, p. 1.

(2) Words and expressions used in these Regulations which are also used in the Directive have the same meaning as in the Directive. 3. Article 4 (1) of the Regulations of 1991 is hereby amended by the addition of the following definitions—

"vehicle" means a vehicle as defined in Article 1 (1) of Council Directive 72/166/EEC;3

"the Motor Insurers' Bureau of Ireland" means the national compensation body as defined in Article 1 (3) of Council Directive 72/166/EEC;

"the guarantee fund" means the national guarantee fund required by Articles 1 (4) and 2 (2) of Council Directive 84/5/EEC;4

"parent undertaking" means a parent undertaking as defined in articles 1 and 2 of Council Directive 83/349/EEC;5

"subsidiary" means a subsidiary undertaking as defined in Articles 1 and 2 of Council Directive 83/349/EEC; any subsidiary undertaking of a subsidiary undertaking shall also be regarded as a subsidiary of the parent undertaking which is at the head of those undertakings. 4. The Principal Regulations are hereby amended by the substitution for Article 3A inserted by the Regulations of 1991 of the following:

"3A (1) For the purposes of these Regulations 'large risks' means:

( a ) risks classified under classes 4, 5, 6, 7, 11 and 12 of the Annex;

( b ) risks classified under classes 14 and 15 of the Annex, where the policyholder is engaged in an industrial, commercial or professional activity and the risks relate to such activity;

3 O.J. No. L 103, 2.5.1972, p. 1.

4 O.J. No. L 129, 19.5.1990, p. 33.

5 O.J. No. L 193, 18.7.1983, p. 1.

( c ) risks classified under Classes 3, 8, 9, 10, 13 and 16 of the Annex in so far as the policyholder exceeds the limits of at least two of the following three criteria:

first stage: until 31 December, 1992.

balance sheet total: 12.4 million ECU;

net turnover: 24 million ECU;

average number of employees during the financial year: 500.

second stage: from 1 January, 1993:

balance sheet total: 6.2 million ECU;

net turnover: 12.8 million ECU;

average number of employees during the financial year: 250.

(2) Where the policyholder belongs to a group of undertakings for which consolidated accounts within the meaning of Council Directive 83/349/EEC are drawn up, the criteria specified in paragraph (c), subarticle (1) of this Article shall be applied on the basis of consolidated accounts.

(3) Risks insured for professional associations, joint ventures or temporary groupings shall also be classified as large risks where they comply with the criteria specified in paragraph (c) of subarticle (1) of this Article.". 5. Articles 5 to 8 of these Regulations apply to subsidiaries of parent undertakings governed by the laws of a third country and to acquisitions of holdings by such parent undertakings. 6. (1) The Minister shall notify the Commission:

( a ) of any authorization of a direct or indirect subsidiary, one or more parent undertakings of which are governed by the laws of a third country,

( b ) whenever such a parent undertaking acquires a holding in a Community insurance undertaking which would turn the latter into its subsidiary.

(2) When authorization is granted to the direct or indirect subsidiary of one or more parent undertakings governed by the law of third countries, the structure of the group shall be specified in the notification which the Minister shall address to the Commission. 7. The Minister shall inform the Commission of any general difficulties encountered by insurance undertakings who hold an authorization granted by the Minister in establishing themselves or carrying on their activities in a third country. 8. (1) The Minister shall comply with the decision which has been...