Third Parties (Rights against Insurers) Act 2010
Last amended by The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 in 2023. 1 recorded amendment effect (legislation.gov.uk changes data).
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
This Act modernises and simplifies the procedure by which a third party (e.g., an accident victim) can claim directly against the liability insurer of a defendant who is insolvent or has been dissolved. It replaces the 1930 Act of the same name, removing the requirement for the third party to first establish the insured's liability in separate proceedings before suing the insurer.
Key Points
- Transfers the insured's rights against the insurer directly to the third party on insolvency (s.1)
- Third party can bring proceedings directly against the insurer without first establishing the insured's liability (s.2)
- Third party entitled to information about insurance from insurer and insured (ss.11–12)
- Applies to all types of liability insurance
Parts & Sections
Amendments History
2010 — The Third Parties (Rights against Insurers) Act 2010 (Commencement) Order 2016
38 commencement (coming-into-force) effects (legislation.gov.uk changes data).
2016 — The Bankruptcy (Scotland) Act 2016 (Consequential Provisions and Modifications) Order 2016
25 recorded amendment effects (legislation.gov.uk changes data).
2016 — The Third Parties (Rights against Insurers) Regulations 2016
19 recorded amendment effects (legislation.gov.uk changes data).
2015 — Insurance Act 2015
12 recorded amendment effects (legislation.gov.uk changes data).
2023 — The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023
1 recorded amendment effect (legislation.gov.uk changes data).
Frequently asked questions
- What does the Third Parties (Rights against Insurers) Act 2010 do?
- The Act allows a third party, such as an accident victim, to claim directly against the liability insurer of a defendant who is insolvent or has been dissolved. It modernises the procedure by removing the previous requirement for the third party to first establish the insured's liability in separate proceedings before suing the insurer.
- Does the Act apply to all types of insurance policies?
- Yes, the Act applies to all types of liability insurance. This broad application ensures that third parties can access insurance funds regardless of the specific category of liability covered by the policy, provided the relevant insolvency event has occurred.
- Can a third party request information about the insurance policy?
- Sections 11 and 12 of the Act entitle a third party to request information about the insurance from both the insurer and the insured. This provision helps third parties gather the necessary details to pursue their claim directly against the insurer following an insolvency event.
- When did the Act come into force and has it been amended?
- The Act received 38 commencement effects under the 2016 Commencement Order. It has also been amended by several other pieces of legislation, including the Insurance Act 2015, which recorded 12 amendment effects, and the 2016 Regulations, which recorded 19 amendment effects.