The Third Parties (Rights Against Insurers) Bill received Royal Assent during March and replaces the Third Parties (Rights Against Insurers) Act 1930.
Where a person suffers loss or injury because of the actions of an insured, e.g. a driver rear end shunted by another driver or an employee injured due to fault of an employer, then the injured person can claim against the insured who passes the details to their insurer. However problems with the 1930 Act include:-
• the injured party is required to establish the existence and amount of the insured’s liability before issuing proceedings against the insurer;
• the injured party has to proceed against both insured and insurer;
• certain types of voluntarily-incurred liabilities are not covered;
• disclosure of information can be inadequate as the obligation to provide information only arises when liability is established.
Focusing on the rights of a person who has been injured because of the actions of an insured, the new Third Parties (Rights Against Insurers) Act has the following key differences to the Act it replaces:-
• the existence and amount of the insured’s liability will not have to be established before proceedings can be issued;
• where an insured becomes insolvent, the rights of the insured against the insurers are transferred to the injured party. The injured party can then issue proceedings against the insurers;
• insurers are unable to avoid an insurance policy because the insured has become insolvent or alter the rights of the injured party;
• Injured parties can obtain disclosure of information and terms of policies before the liability of the insured is established;
• voluntarily incurred liabilities will be covered;
• the definition of an insolvent person is widened to include individuals, incorporated and unincorporated bodies and certain trusts.
If you have been injured in an accident that was not your fault, contact Vicky Jones on 0116 212 1000 now or complete one of the on-line forms, even if you think the person or employer liable is insolvent.
