Section 83 of this ancient Act gives interested persons the right to demand that insurance money is used to reinstate a building damaged by fire, rather than being paid to the policyholder.

As part of its ongoing review of Insurance Contract Law, the Law Commission is considering whether this section is in need of reform. It has reached the tentative conclusion that it is not. The Law Commission have however invited responses on whether problems do arise in this area. In particular, they question whether there are cases in which tenants and other parties with an interest in the property have been unable to obtain reinstatement of the property because they were not parties to the relevant insurance contract.

A copy of the memo can be found by clicking here.