The Policyholders Compensation Fund (PCF) is a State Corporation under the Ministry for Finance that was established through Legal Notice No.105 of 2004 and commenced its operations in January 2005. The Fund was established for the primary purpose of providing compensation to policyholders of an insurer that has been declared insolvent and for the secondary purpose of increasing the general public’s confidence in the insurance sector. The decision to establish the Fund was informed by the collapse of several Insurance companies prior to the year 2005