Third Parties (Rights Against Insurers) Act 2010 to come into force

On 1 August 2016 the Third Parties (Rights Against Insurers) Act 2010 (Act) will come into force.

It replaces the Third Parties (Rights against Insurers) Act 1930, except for cases where both the insured incurs liability to a third party and its insolvency proceedings commenced before 1 August 2016.  The new Act will not apply to reinsurance.

The Act received royal assent some six years ago and introduces a simpler and potentially cheaper procedure for claiming directly against the insurer of an insolvent individual or corporate defendant.

For more information, contact the Banking and Finance team.