ARTICLE · 20 JULY 2017

Section 6: Gone But Not Forgotten – The ‘No Utility' Legacy

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On 1 June 2017, the Civil Liability (Third Party Claims Against Insurers) Act 2017 (the Act) received Royal Assent and entered into force in New South Wales.

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Gavin Beardsell

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On 1 June 2017, the Civil Liability (Third Party Claims Against Insurers) Act 2017 (the Act) received Royal Assent and entered into force in New South Wales. The Act repealed Section 6 of the Law Reform (Miscellaneous Provisions) Act 1946 (the LRMP Act) and replaced it with a new regime to allow a third party claimant to recover the amount of an insured liability by proceeding directly against an insurer.

Under section 5(3) of the Act, the courts of NSW have discretion whether to grant or refuse leave to bring or continue proceedings against an insurer. A recent decision of the NSW Supreme Court concerning section 6 of the LRMP Act is instructive as to how the courts of New South Wales will likely exercise the discretion under section 5(3) of the Act.

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