Third Parties (Rights Against Insurers) Act 2010
Ralph Fearnhead
Business Shapers
12 May 2016

Third Parties (Rights Against Insurers) Act 2010

August 2016 will see the biggest shake up to UK Insurance law in living memory. In addition to the implementation of a new general Insurance Act, making substantial changes to the rights of policyholders and insurers, it has recently been announced that the "new" Third Parties (Rights Against Insurers) Act 2010 will finally come into effect on 1 August 2016.

The new Third Parties Act is significant. It applies both to companies and individuals and will be of interest to anyone with a claim against an insolvent party. In addition to bringing the current Act up to date with current insolvency law, it allows the party with a claim to:

  1. Find out whether the insolvent party has any insurance policies which would have provided cover against the liabilities the claim relates to, and
  2. Bring a claim directly against the insolvent party's insurers, avoiding the risk and uncertainty of suing an insolvent entity.


The ability to access an insolvent party's insurance cover is not new. The existing 1930 Act of the same name allows claims to be brought against an insolvent party's insurers, but not without significant risk and expense. The new Act purposefully makes it much easier and cheaper to do so and is expected and intended to be more widely used as a result.

Like the existing Act, the new Act does not generally transfer to a third party any greater rights against the insolvent party's insurers than the insolvent party itself would have had. However, it includes significant new provisions in an attempt to overcome the practical issues which have prevented the existing 1930 Act from being utilised more widely.

Read the full article here.