PRESS RELEASE ISSUED BY THE MALTA ARBITRATION CENTRE

The Malta Arbitration Centre (MAC) and the Malta Insurance Association (MIA) have entered into an agreement between them on Motor Claims Arbitrations.

Through the agreement MIA undertakes to encourage its members to conduct arbitrations on motor and traffic disputes under the auspices of the MAC without prejudice to its members making use of alternative methods of dispute resolution. On its part, the MAC, by virtue of its powers under the Arbitration Rules 2000, has approved special tariffs applicable to such disputes under certain agreed conditions. These apply when arbitrations are regulated by specially designed procedures which seek to shorten the time needed for decisions. These include procedures when the arbitration is based on documents only.

The two sides have also agreed to actively seek to develop specimen arbitration clauses and conditions which can be used by members of the MIA in their policies to enable as many motor and traffic disputes as possible to be settled by arbitration and to cooperate in educational and promotional efforts in this regard.

It is the intention of the MAC to make the principles enunciated by the same terms and conditions available to members of the general public who may wish to submit a motor or traffic dispute to arbitration.

The agreement covers disputes arising from collisions between motor vehicles, damage to person or property caused by motor vehicles or disputes arising from such events.

Dr. Max Ganado, Chairman of the MAC, and Mr. Lino Ferris, President of the MIA signed the agreement on behalf of their respective organizations on Thursday, 15^th March 2001.