The Third Parties (Rights Against Insurers) Bill was put before Parliament (First Reading) on 23 November 2009. It received its Second Reading at Grand Committee Stage in the House of Lords on 7 December 2009.

The Bill will allow claimants to sue an insolvent defendant’s insurer directly, without having to join the insured in the proceedings or to establish the defendant’s liability fi rst. A list of information disclosable to the third party will be set out in the statute, in an effort to give third parties a right to obtain insurance policy information faster, to reach a view on the likelihood of success. The Bill also clarifi es the law where a foreign company is involved. The legal requirement for a dissolved company to be restored to the register of companies is removed. The rights transferred to the third party are still subject to the same defences that the insurer could have used against the insured, but with a small number of enhancements to the third party’s rights. For example, a third party will be able to provide notice of a claim and corporate Insureds that have been dissolved will no longer be treated as being in breach of policy conditions requiring continuing cooperation/assistance. For more information, go to