1 / 11

Third Parties (Rights Against Insurers) Act 2010

Third Parties (Rights Against Insurers) Act 2010. Owen Gorman Director: Delta Claims Services Limited. Summary. 1930 Act & previous position Hopes/Fears and Bankruptcies Objectives Key changes Impact on Insurers Observations Bill procedure – unique Trial Procedure. Previous position.

niveditha
Download Presentation

Third Parties (Rights Against Insurers) Act 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Third Parties (Rights Against Insurers) Act 2010 Owen Gorman Director: Delta Claims Services Limited

  2. Summary • 1930 Act & previous position • Hopes/Fears and Bankruptcies • Objectives • Key changes • Impact on Insurers • Observations • Bill procedure – unique Trial Procedure

  3. Previous position • Common Law position - Insurance funds added to pot for other unsecured creditors • 1930 Act transfers Insured’s rights to TP • Issues: • TP to establish liability against Insured • Restoration of dissolved company • Recover against Insurer • Expensive, cumbersome & a deterrent

  4. Fears & Bankruptcies • UK Bankruptcies (incl. IVA’s) 134,142 • 2006 “record” figures 107,288 • 2010 believed to on track for new record! • Complex nature of 1930 Act benefited in blocking/steaming access to Insurers funds • Another intervention not provided for in premium considerations?

  5. Objectives of Act • Easier access to compensation from insolvent defendants • Less expense in doing so • Single stage proceedings against Insurer • Greater access to Insurance policy information • Need to restore defunct company removed

  6. Key changes – TP rights • Statutory transfer of rights to access Insurer • Limit on rights transferred as per 1930 Act • No restoration of company required • Access to policy information expanded • Insurers, Brokers, Company etc. • Insured’s liability clarified to be only those sums not covered by policy

  7. Key changes – Insurer rights • Defences as per 1930 Act except • Condition for Insured to “do” something can be satisfied by TP • Continuing info & co-operation from Insured does not apply where Insured cannot comply • “Pay 1st” clauses do not apply to TP • Outstanding Premiums can be offset

  8. Key changes - scope • Wider application to alternatives to insolvency including voluntary procedures • Applies to voluntarily incurred liabilities e.g. Legal expenses, health & car repair Insurances • UK jurisdiction choice of own domicile or that of Insurer regardless of policy

  9. Impact on Insurers • Increase in Third Party claims • Cost savings to balance this? • Increase in requests for information: Admin burden • This may lead to greater duties on the part of the TP to present prompt, meritorious claims?

  10. Practical observations • Has anything really changed in practice? • Insurers views – generally relaxed • Investigation problems from increase in business failures – not specifically the Act • Debtors to business versus Third Parties – does this reflect fairness? • Removes posturing and tactical positioning

  11. Bill Procedure • First presented to Parliament 23/11/09 • Committee stage ended 9/2/10 • Report stage & 3rd reading started 22/2/10 • Part of new House of Lords procedure • Then House of Commons 5 part procedure • Royal Assent 25 March 2010 • CILA’s role

More Related