Third party claims against insurers

The venerable Third Parties (Rights against Insurers) Act 1930 was meant to be suppressed no less than six years ago and supplanted  by its namesake, the Third Parties (Rights against Insurers) Act 2010. Unfortunately, owing to a drafting glitch connected with insolvency law, the 2010 Act could not be brought into force; and so we still have the 1930 Act. But not for much longer. The glitch has now been cured by amendments brought in under the 2015 Insurance Act, and the shiny new 2010 Act comes into force on 1 August this year. A few changes (apart from length: the old Act made do with 5 sections, whereas the new model has 21 and 4 schedules, but that’s life). One is the obviation of the need to raise long-defunct companies from the dead, so as to be able technically to sue the corporate zombie and get judgment against it, so as to be able then to say that it could sue the insurer. Another is the abolition of “pay-to-be-paid”, except in the case of non-personal-injury marine insurance claims; yet another, the curtailment of the right of the insurer to rely on lack of notification by its own insured, provided such notification is given by the claimant.

The new Act makes it clear that it applies to insurance and not to reinsurance.

Details in brief from Clyde & Co’s ever-useful updating service.

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