(1) Subject to subsection (2), the Risk Equalisation Scheme shall apply to -

(a) each registered undertaking, and

(b) each undertaking that has ceased to be a registered undertaking but was a registered undertaking at any time when the Scheme was in force.

(2) The Risk Equalisation Scheme shall not apply to a restricted membership undertaking.

(3) The Risk Equalisation Scheme shall not apply to so much of the activities of a registered undertaking as consist of effecting health insurance contracts where such a contract -

(a) either of itself or as construed with any linked or related other health insurance contract, makes no provision for the making of in-patient indemnity payments, or

(b) relates solely to the public hospital daily in-patient charges made under the Health (In-patient Charges) Regulations 1987 (S.I. No. 116 of 1987).