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What has happened to the Third Parties (Rights Against Insurers) Act 2010?

29 March 2012

The Lord Chancellor has reported to Parliament on the progress, or, more accurately, the lack of progress, towards implementation of the Third Parties (Rights Against Insurers) Act 2010.

When implemented, the Act will make it easier for a person with a claim against an insolvent but insured wrongdoer to claim against the wrongdoer’s insurer. It will allow the claimant to proceed against the insurer directly without first establishing the liability of the insolvent person. The question of liability can be tested in proceedings against the insurer.

Implementation of the Act has apparently been delayed by work “on other priorities”. Additionally, the Lord Chancellor reported that some rules of court will need to be amended before it comes into force; the Act requires an amendment to cover all forms of administration; and that it should be extended to the newly introduced Debt Relief Orders in Northern Ireland.

In view of this it is unlikely that the Act will come into force until 2013.

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Jonathan Newbold

Jonathan Newbold

Partner and Head of Financial Services & Insurance

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