transferred upon the transfer of the Sphere of Gas and Petroleum in accordance with the Interim Agreement.

Annex Concerning the Sphere of Insurance

1. This sphere includes, inter alia, the licensing of insurers and insurance agents, and the supervision of their activities, including supervision of insurer's deposits and funds and the road safety fund.
   
   
2. Arrangements regarding the compulsory insurance of motor vehicles and the compensation of road accident victims are dealt with in Article XI ( Insurance Issues ) of the Protocol on Economic Relations signed in Paris on April 29, 1994 ( hereinafter: Article XI ).
   
   
1. The Existing Fund, as defined in Article XI, shall be transferred to the Palestinian side. This transfer will include all the Existing Fund's assets and liabilities.
   
   
2. The Palestinian side shall be responsible for all liabilities of the Existing Fund whether arising from accidents occurring prior or subsequent to the date of transfer.
   
   
3. Accordingly, Israel will cease to bear any financial responsibility in this respect. If Israel is sued with regard to the aforesaid liabilities, the Palestinian side will reimburse Israel for the full amount awarded by any court against it in this respect and shall enable the Palestinian side to participate in defending the claim.
   
   

3. With a view to assisting the Palestinian side to deal with claims against the Existing Fund, the following provision shall apply:
   
   
1. A joint experts committee shall be established to examine claims against the Existing Fund ( hereinafter " the Joint Committee " ).
   
   
2. Without prejudice to paragraph 3 ( c ) above, the Joint Committee shall examine and estimate whether the assets of the Existing Fund are sufficient to meet its liabilities as they stand on the day of the transfer. In the event that the Joint Committee concludes that the Existing Fund's assets are not sufficient to meet its liabilities, the Israeli side shall cover the agreed deficit, including claims incurred but not reported ( IBNR ). If the Joint Committee is unable to agree on the above amount, the matter shall be referred to the JEC ( Joint Economic Committee ).
   
   
3. The Joint Committee shall submit recommendations to the Palestinian side concerning administrative or legal changes with a view to expediting settlement of the claims.
   
   
4. The Joint Committee shall conclude its work within three months. The two sides may agree on a one time extension for another three months.
   
   

4. Additionally, the Israeli side will provide to the Palestinian side all the necessary assistance with regard to the Existing Fund, and advice and consultation when requested.

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