Section 12B of the Principal Act (inserted by section 10 of the Act of 2001) is hereby amended by -

(a) the substitution of the following subsection for subsection (1):

"(1)

(a) Subject to paragraph (c), a registered undertaking (other than a restricted membership undertaking) may, before the date on which it commences the carrying on of a health insurance business (in this section referred to as the `commencement date'), serve a notice on the Authority stating that it does not wish-

(i) a requirement of a scheme to make a return or returns, in so far as the return or returns would relate to the period of 6 months beginning on the commencement date, or

(ii) the other provisions of a scheme in respect of the period of 36 months beginning on the commencement date, to apply to it.

(b) Where a registered undertaking serves a notice under and in accordance with paragraph (a), and the commencement date in respect of that undertaking falls not later than 3 months after the service by it of that notice, neither-

(i) a requirement of a scheme, to make a return or returns in so far as the return or returns would relate to the period of 6 months beginning on that commencement date, nor

(ii) the other provisions of a scheme in respect of the period of 36 months beginning on that commencement date.