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Third Parties (Rights against Insurers) Act 2010

Type of Bill:
Government Bill
Sponsors:
Lord Bach
Ministry of Justice
Jack Straw
Ministry of Justice

Progress of the Bill

Bill started in the House of Lords

  1. House of Lords
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  2. House of Commons
    1. 1st reading
    2. 2nd reading
    3. Committee stage
    4. Report stage
    5. 3rd reading
  3. Consideration of Amendments
  4. Royal Assent

Last event

Act of Parliament

House Act Date
Commons Third Parties (Rights against Insurers) Act 2010 c.10 | PDF version, 113KB 25.03.2010

Latest news on the Third Parties (Rights against Insurers) Act 2010

Following agreement by both Houses on the text of the Bill it received Royal Assent on 25 March. The Bill is now an Act of Parliament (law).

Summary of the Third Parties (Rights against Insurers) Act 2010

The purpose of the Third Parties (Rights Against Insurers) Bill is to amend existing legislation governing the relationship between insurers and claimants, with specific regard to “third parties”, to make it easier and less expensive to claim compensation from insolvent defendants.  Current legislation dictates that claimants must establish an insolvent defendant’s liability before bringing a separate claim against their insurer.  However, the Bill would enable claimants to sue the insolvent defendant’s insurer directly, without having to sue the wrongdoer first.

Key areas

  • The Bill would remove the need for separate proceedings to establish the insured parties’ liability before suing the insurer, thereby reducing time and costs.
  • Claimants would be provided with the right to obtain insurance policy information quicker to establish the likelihood of success.
  • The existing legislation in relation to the involvement of foreign companies would be clarified.
  • Existing legal requirements for a dissolved company to be restored to the register of companies would be removed.

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