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Changes to Third Parties (Rights against Insurers) Act 2010 (15 June 2016)

Date: 15/06/2016
Duncan Lewis, Legal News Solicitors, Changes to Third Parties (Rights against Insurers) Act 2010

Companies House has announced that, from 1 August, new legislation amending the Third Parties (Rights against Insurers) Act 2010 will enable a third party to issue proceedings directly against the insurer of a dissolved company.

The Third Parties (Rights against Insurers) Regulations 2016 will remove the need to restore the dissolved company to make a personal injury claim.

Companies House says the 2010 Act modernises and simplifies the Third Parties (Rights against Insurers) Act 1930 and the Third Parties (Rights against Insurers) Act (Northern Ireland) 1930.

The Act extends to the whole of the UK – and has been updated to reflect changes in insolvency laws since the 1930s, such as voluntary procedures.

The amendments also list the insolvency and insolvency-type circumstances – including dissolution – in which the 2010 Act may apply to companies.

The changes also remove the requirement for claimants to restore dissolved companies that have been struck off the register, in order to resolve claims against insolvent insured parties.

The new law will apply where a company incurred a liability and entered a state of insolvency on or after 1 August 2016, or before 1 August 2016 and the insolvency started on or after 1 August 2016 – or on or after 1 August 2016 and the insolvency started before 1 August 2016.

If both the liability was incurred and the state of insolvency occurred before 1 August 2016, the Third Parties (Rights against Insurers) Act 1930 will continue to apply.

In these circumstances, the company will need to be restored to pursue personal injury claims.

The same rules apply where, instead of entering a state of insolvency, a company is dissolved under Section 1000, 1001 or 1003 of the Companies Act 2006.

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