Third Parties (Rights against Insurers) Act 2010

To make provision about the rights of third parties against insurers of liabilities to third parties in the case where the insured is insolvent, and in certain other cases.

The purpose of the Third Parties (Rights Against Insurers) Bill is to amend existing legislation governing the relationship between insurers and claimants, with specific regard to “third parties”, to make it easier and less expensive to claim compensation from insolvent defendants. Current legislation dictates that claimants must establish an insolvent defendant’s liability before bringing a separate claim against their insurer. However, the Bill would enable claimants to sue the insolvent defendant’s insurer directly, without having to sue the wrongdoer first.Key areas

• The Bill would remove the need for separate proceedings to establish the insured parties’ liability before suing the insurer, thereby reducing time and costs.

• Claimants would be provided with the right to obtain insurance policy information quicker to establish the likelihood of success.

• The existing legislation in relation to the involvement of foreign companies would be clarified.

• Existing legal requirements for a dissolved company to be restored to the register of companies would be removed.