Rights against insurers delayed
Posted: 2nd May 2013
A new law which aims to help those claiming against insolvent companies has been delayed, probably until 2014.
The Third Parties (Rights Against Insurers) Act 2010 will allow a person with a claim against an insolvent company to make the claim directly against the insurer of the insolvent company without first having to obtain a judgment against the insolvent company.
The changes will also allow claims to be brought directly against companies that are in corporate voluntary arrangements with their creditors.
Prior to the issue of the proceedings, there will be a right to make requests of the insurer to ascertain the scope of the coverage of the policy.
It was originally intended that the changes would be introduced this year, but it has now been announced that the law will proceed 'when Parliamentary time permits'.