Text proposed by the Commission Amendment

Article 10a Article 10a

Protection of injured parties in case of insolvency of an insurance undertaking or lack of cooperation of an insurance undertaking Protection of injured parties in case of insolvency of an insurance undertaking

-1. Member States shall take all measures necessary to ensure that injured parties have the right to claim compensation, at least up to the limits of the insurance obligation referred to in Article 9(1) or the guarantee limits prescribed by the Member State, if higher, for personal injuries or damage to property caused by a vehicle insured by an insurance undertaking in the following situations:

(a) the insurance undertaking is subject to bankruptcy proceedings; or

(b) the insurance undertaking is subject to winding-up proceedings as defined in Article 268(d) of Directive 2009/138/EC of the European Parliament and of the Council (*) .

1. Member States shall set up or authorise a body to compensate injured parties habitually residing within their territory, at least up to the limits of the insurance obligation referred to in Article 9(1) for personal injuries or material damage, caused by a vehicle insured by an insurance undertaking in any of the following situations: 1. Each Member State shall set up or authorise a body to compensate injured parties, habitually residing within their territory, in the situations referred to in paragraph - 1.

(a) the insurance undertaking is subject to bankruptcy proceedings;

(b) the insurance undertaking is subject to a winding up procedure as defined in Article 268(d) of Directive 2009/138/EC of the European Parliament and of the Council (***);

(c) the insurance undertaking or its claims representative has not provided a reasoned reply to the points made in a claim for compensation within three months after the date on which the injured party presented his or her claim to that insurance undertaking.

2. Injured parties may not present a claim to the body referred to in paragraph 1 if they have presented a claim directly to or taken legal action directly against the insurance undertaking and such claim or legal action is still pending.

3. The body referred to in paragraph 1 shall give a reply to the claim within two months after the date on which the injured party has presented his or her claim for compensation. 3. The injured party may apply for compensation directly to the body referred to in paragraph 1. That body shall, on the basis of information provided at its request by the injured party, provide the injured party with a reasoned reply regarding the payment of any compensation within three months from the date when the injured party applies for compensation.

Where compensation is due, the body referred to in paragraph 1 shall within three months of communicating its reply, provide the full compensation to the injured party or, when compensation is in the form of agreed periodic payments, start such payments.

When an injured party has filed a claim to an insurance undertaking or its claims representative, which before or during a claim became subject to the situations referred to in paragraph - 1, and that injured party has not yet received a reasoned reply from that insurance undertaking or its claims representative, the injured party shall be able to re-submit his or her claim for compensation to the body referred to in paragraph 1. .

4. Where the injured party is resident in another Member State than the Member State in which the insurance undertaking referred to in paragraph 1 is established, the body referred to in paragraph 1 and which has compensated that injured party in his or her Member State of residence, shall be entitled to claim reimbursement of the sum paid by way of compensation from the body referred to in paragraph 1 in the Member State in which the insurance undertaking which issued the policy of the liable party is established . 4. Where the insurance undertaking received the authorisation in accordance with Article 14 of Directive 2009/138/EC in a Member State different from the Member State for which the body referred to in paragraph 1 is competent, that body shall be entitled to claim reimbursement of the sum paid by way of compensation from the body referred to in paragraph 1 in the Member State in which the insurance undertaking received the authorisation .

5. Paragraphs 1 to 4 are without prejudice to: 5. Paragraphs -1 to 4 are without prejudice to:

(a) the right of Member States to regard compensation paid by the body referred to in paragraph 1 as subsidiary or non-subsidiary; (a) the right of Member States to regard compensation paid by the body referred to in paragraph 1 as subsidiary or non-subsidiary;

(b) the right of Member States to make provision for the settlement of claims in respect of the same accident between: (b) the right of Member States to make provision for the settlement of claims in respect of the same accident between:

(i) the body referred to in paragraph 1; (i) the body referred to in paragraph 1;

(ii) the person or persons liable for the accident; (ii) the person or persons liable for the accident;

(iii) other insurance undertakings or social security bodies required to compensate the injured party. (iii) other insurance undertakings or social security bodies required to compensate the injured party.

6. Member States shall not allow the body referred to in paragraph 1 to make the payment of compensation subject to any requirements other than those laid down in this Directive and in particular not the requirement that the injured party should establish that the party liable is unable or refuses to pay. 6. Member States shall not allow the body referred to in paragraph 1 to make the payment of compensation subject to any reduction or to any requirements other than those laid down in this Directive . In particular, Member States shall not allow the body referred to in paragraph 1 to make the payment of compensation subject to the requirement that the injured party establish that the party liable or the insurance undertaking is unable or refuses to pay.

7. The Commission shall be empowered to adopt delegated acts in accordance with the procedure referred to in Article 28b in order to define the procedural tasks and the procedural obligations of the bodies set up or authorised pursuant to Article 10a with regard to the reimbursement. 7. This Article shall take effect:

(a) after an agreement has been concluded between all the bodies referred to in paragraph 1, set up or authorised by the Member States, relating to their functions and obligations and the procedures for reimbursement;

(b) from a date to be fixed by the Commission once it has ascertained, in close cooperation with the Member States, that the agreement referred to in point (a) has been concluded ."

7a . Injured parties referred to in Article 20(1) may, in the situations referred to in paragraph - 1, apply for compensation from the compensation body referred to in Article 24 in their Member State of residence.

7b. The injured party may apply for compensation directly to the compensation body which, on the basis of information provided at its request by the injured party, shall provide the injured party with a reasoned reply within three months of the date when the injured party applies for compensation.

Upon receipt of the claim, the compensation body shall inform the following persons or bodies that it has received a claim from the injured party:

(a) the insurance undertaking subject to bankruptcy or winding-up proceedings;

(b) the liquidator appointed for that insurance undertaking, as defined in Article 268(f) of Directive 2009/138/EC;

(c) the compensation body in the Member State where the accident occurred; and

(d) the compensation body in the Member State where the insurance undertaking received the authorisation in accordance with Article 14 of Directive 2009/138/EC in case that Member State differs from the Member State where the accident occurred.

7c. Upon receipt of the information referred to in paragraph 7b, the compensation body in the Member State where the accident occurred shall inform the compensation body in the injured party's Member State of residence whether the compensation by the body referred to in paragraph 1 is to be regarded as subsidiary or non-subsidiary. The compensation body in the injured party's Member State of residence shall take into account that information when providing compensation.

7d. The compensation body which has compensated the injured party in his or her Member State of residence shall be entitled to claim reimbursement of the sum paid by way of compensation from the compensation body in the Member State where the insurance undertaking received the authorisation in accordance with Article 14 of Directive 2009/138/EC.

7e. The latter body shall be subrogated to the injured party in his or her rights against the body referred to in paragraph 1 established in the Member State where the insurance undertaking received the authorisation in accordance with Article 14 of Directive 2009/138/EC in so far as the compensation body in the injured party's Member State of residence provided compensation for personal injuries or damage to property.

Each Member State shall be obliged to acknowledge this subrogation as provided for by any other Member state.

7f. The agreement between compensation bodies, referred to in Article 24(3), shall contain provisions relating to the compensation bodies' functions, obligations and procedures for reimbursement resulting from this Article.