Third Parties (Rights Against Insurers) Act |
(CHAPTER 395) |
(Original Enactment: 20 & 21 Geo. 5, c. 25)
REVISED EDITION 1994 |
(20th May 1994) |
An Act to confer on third parties rights against insurers of third-party risks in the event of the insured becoming insolvent and in certain other events. |
[12th November 1993*] |
* Date when this Act was made applicable by the Application of English Law Act (Cap. 7A). |
Rights of third parties against insurers on bankruptcy, etc., of the insured |
Duty to give necessary information to third parties |
2.—(1) In the event of any person becoming bankrupt or making a composition or arrangement with his creditors, or in the event of an order being made under section 124 of the Bankruptcy Act [Cap. 20], in respect of the estate of any person, or in the event of a winding-up order being made, or a resolution for a voluntary winding up being passed, with respect to any company or of a receiver or manager of the company’s business or undertaking being duly appointed or of possession being taken by or on behalf of the holders of any debentures secured by a floating charge of any property comprised in or subject to the charge, it shall be the duty of the bankrupt, debtor, personal representative of the deceased debtor or company, and, as the case may be, of the trustee in bankruptcy, trustee, liquidator, receiver, or manager, or person in possession of the property to give at the request of any person claiming that the bankrupt, debtor, deceased debtor, or company is under a liability to him such information as may reasonably be required by him for the purpose of ascertaining whether any rights have been transferred to and vested in him by this Act and for the purpose of enforcing such rights, if any, and any contract of insurance, in so far as it purports, directly or indirectly, to avoid the contract or to alter the rights of the parties thereunder upon the giving of any such information in the events aforesaid or otherwise to prohibit or prevent the giving thereof in the said events shall be of no effect.
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Settlement between insurers and insured persons |
3. Where the insured has become bankrupt or where, in the case of the insured being a company, a winding-up order has been made or a resolution for a voluntary winding up has been passed, with respect to the company, no agreement made between the insurer and the insured after liability has been incurred to a third party and after the commencement of the bankruptcy or winding up, as the case may be, nor any waiver, assignment, or other disposition made by, or payment made to the insured after the commencement aforesaid shall be effective to defeat or affect the rights transferred to the third party under this Act, but those rights shall be the same as if no such agreement, waiver, assignment, disposition or payment had been made. |
Application to limited liability partnerships |
3A. This Act applies to limited liability partnerships registered under the Limited Liability Partnerships Act 2005 as it applies to companies. [5/2005 wef 01/04/2005] |
Short title |
4. This Act may be cited as the Third Parties (Rights against Insurers) Act. |