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ARTICLE · 15 OCTOBER 2017

Has new NSW insurance legislation created more problems than it has solved for claimants, creditors and insolvency practitioners?

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Below, we offer an overview of what the NSW Act does, and outline three key issues it raises.

AustraliaInsurance
Michael Catchpoole
Michael Catchpoole
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In June 2017, the New South Wales Parliament introduced the Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW Act), designed to clarify the rights of claimants to proceed directly against insurance companies. But in the context of insolvent corporations, has it created more problems than it has solved?

Below, we offer an overview of what the NSW Act does, and outline three key issues it raises for claimants, creditors and insolvency practitioners. We also outline our observations on the other aspects of the Act we feel require further consideration.

WHAT DOES THE NSW ACT DO?

At a high level, the NSW Act provides for direct claims by creditors against insurers - sidestepping the need to sue the insured party or the beneficiary directly.

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