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ARTICLE · 08 DECEMBER 2010

Third Parties (Rights Against Insurers) Act 2010

Barlow Lyde & Gilbert LLP
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The recently enacted Third Parties (Rights against Insurers) Act 2010 (the "Act") will give greater powers to those seeking to make a recovery against an insolvent party's insurance policy.

United KingdomReal Estate and Construction
Martin Paxton
Martin Paxton

The recently enacted Third Parties (Rights against Insurers) Act 2010 (the "Act") will give greater powers to those seeking to make a recovery against an insolvent party's insurance policy.

In the still-gloomy economic conditions, the rate of insolvencies in the construction industry remains high. Against this backdrop the new Third Parties Act will make it easier for claimants to pursue an insolvent party's insurer.

No date has yet been set for the Act to come into force. Most expect a date around mid-2011 once the new Coalition Government has completed its review of Labour-led legislation. This is an Act that is expected to survive that process, and once it is in force, it will allow third parties to "leap-frog" the insolvent company and bring their claim directly against the insolvent's insurer. Third parties will no longer have to establish liability against the insolvent insured before issuing proceedings against the insurer. The Law Commissions of England and

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