Third Parties (Rights against Insurers) Act 2010

Thursday 25th April 2013 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Mrs Helen Grant)]

In my written ministerial statement of 18 December 2012, Official Report, column 96WS about the Third Parties (Rights against Insurers) Act 2010 (“the 2010 Act”) I undertook to make a further statement before the end of the current Session of Parliament.

I am pleased to announce that the Government intend to amend the 2010 Act to include (a) a number of specific insolvency situations and (b) a power for the Secretary of State to add further insolvency situations to the 2010 Act by order should the need arise. We intend to bring the 2010 Act into force as soon as reasonably possible after these amendments have been made.

The specific insolvency situations omitted are within the scope of the Third Parties (Rights against Insurers) Act 1930 and the Third Parties (Rights against Insurers) Act 1930 (Northern Ireland). Commencing the 2010 Act without first including them would deprive third parties, such as individuals and businesses, of the protection they now have from the consequences of the insolvency of the person who has incurred a liability to them. These insolvency situations include: administrations (other than those ordered by the court) under the Insolvency Act 1986; debt relief orders in Northern Ireland; and certain subject specific types of administration orders, such as air traffic administration orders and energy administration orders. The proposed power will provide a straightforward means to remedy any other omissions that may exist now and to add any insolvency situations that are created in the future.

Legislation to effect the necessary amendments to the 2010 Act will be introduced when parliamentary time permits.