Third Parties (Rights against Insurers) Act 2010 coming into force - update

Thursday, 21st July 2016

The long awaited Third Parties (Rights against Insurers) Act 2010 ("the Act") will finally come into force on 1 August 2016.

Although the Act received Royal Assent in 2010, its implementation has been delayed due to a need to correct various errors and omissions, which have now been addressed by the Insurance Act 2015 and by The Third Parties (Rights against Insurers) Regulations 2016.

The Act gives third parties rights to bring a direct claim against the insurer of an insolvent company or individual without first having to establish the liability of the insured.  In addition, third parties will have rights to request information relating to the insurance from the insured or from others who the third party reasonably believes may hold such information (for example insurance brokers).

Our article of last year gives further detail on the implications of the Act - click here to read the article.

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