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Third Parties Rights Against Insurers – The 2010 Act is Now in Force!


Insolvency Practitioners and third parties who wish to claim against the insurer of an insolvent company/individual will be pleased to see that the Third Parties (Rights Against Insurers) Act 2010 came into force this week on 1 August 2016.

The 2010 Act replaces the Third Parties (Rights Against Insurers) Act 1930 in respect of all insolvency proceedings commenced on or after 1 August 2016 (the old 1930 Act regime will still apply to any insolvency that commenced prior to that date).

The 2010 Act introduces a less complex and potentially less costly procedure for any claimant that is seeking to claim against the insurer of an insolvent individual or corporate defendant.

Essentially the 2010 Act enables a third party claimant to claim directly against the insolvent’s insurance company, without the third party needing to issue proceedings and establish liability against the insolvent beforehand.  This in turn avoids the need for third party claimants to have to restore dissolved companies in order to bring such a claim (which they would previously have had to do under the 1930 Act). 

The new provisions of the 2010 Act will be of benefit to Insolvency Practitioners as they will no longer need to consent to proceedings being issued against companies in administration and/or incur any time, costs or potential liability through being involved in such proceedings. 

The 2010 Act for third parties’ rights against insurers also clarifies the obligations placed on Insolvency Practitioners to provide information to third party claimants wishing to claim against the insurer of an insolvent company or individual.  Under the new provisions, when an Insolvency Practitioner receives a notice requesting information about the defendant’s insurance arrangements, they should provide the following information within 28 days:

Should you have any queries regarding the application of the Third Parties (Rights Against Insurers) Act 2010 in the context of an insolvency, then please do not hesitate to contact us. 

Disclaimer: Anything posted on this blog is for general information only and is not intended to provide legal advice on any general or specific matter. Please refer to our terms and conditions for further information. Please contact the author of the blog if you would like to discuss the issues raised.