The Third Parties (Rights against Insurers) Act 2010 (c. 10) received
royal assent
Royal assent is the method by which a monarch formally approves an act of the legislature, either directly or through an official acting on the monarch's behalf. In some jurisdictions, royal assent is equivalent to promulgation, while in othe ...
on 25 March 2010. Its
long title describes it as
It came into force on 1 August 2016,
[ Pinsent Masons]
Third Parties (Rights against Insurers)
published 6 January 2016, accessed 10 June 2022 removing a provision in the Third Parties (Rights against Insurers) Act 1930 which required a third party claimant affected by the insolvency of an insured party to obtain a judgment on the insurer's liability before being able to issue proceedings. Since 2016, the third party claimant has been able to issue proceedings directly against the insurer. Schedule 1 to the Act also established a regime under which information about the insolvent party's insurance could be made available to a person with a "reasonable belief" that they had a transferred right to claim.
The act came into force over six years after its royal assent. The delay holding back its "long-awaited" implementation was related to certain shortcomings concerning business
insolvency
In accounting, insolvency is the state of being unable to pay the debts, by a person or company ( debtor), at maturity; those in a state of insolvency are said to be ''insolvent''. There are two forms: cash-flow insolvency and balance-sheet i ...
,
administration
Administration may refer to:
Management of organizations
* Management, the act of directing people towards accomplishing a goal: the process of dealing with or controlling things or people.
** Administrative assistant, traditionally known as a se ...
and
dissolution, which were addressed in the
Insurance Act 2015.
The (
20 & 21 Geo. 5. c. 25), and its
Northern Ireland
Northern Ireland ( ; ) is a Countries of the United Kingdom, part of the United Kingdom in the north-east of the island of Ireland. It has been #Descriptions, variously described as a country, province or region. Northern Ireland shares Repub ...
equivalent, the (20 & 21 Geo. 5. c. 19 (N.I.)), were
repeal
A repeal (O.F. ''rapel'', modern ''rappel'', from ''rapeler'', ''rappeler'', revoke, ''re'' and ''appeler'', appeal) is the removal or reversal of a law. There are two basic types of repeal; a repeal with a re-enactment is used to replace the law ...
ed by the 2010 act.
In 2001, the
Law Commission of England and Wales and the
Scottish Law Commission reviewed the 1930 legislation and found that it was not working as well as it should. The two commissions' final report set out proposals for reform which were largely reproduced in the new Act.
The 1930 acts continue to apply in certain circumstances.
References
{{UK-law-stub
Insurance legislation
2010 legislation