The Third Parties (Rights against Insurers) Act 2010 (2010 Act) received Royal Assent as long ago as 25 March 2010. The Third Parties (Rights against Insurers) Act 2010 (Commencement) Order 2016 was made on 28 April 2016. The Order brings the 2010 Act into force on 1 August 2016.
The long-awaited 2010 Act repeals and replaces the Third Parties (Rights against Insurers) Act 1930 (1930 Act), except for cases where both the insured incurs liability to a third party and its insolvency proceedings commenced before 1 August 2016.
The 2010 Act keeps the overall scheme of the 1930 Act. It introduces a simpler and potentially cheaper procedure for claiming directly against the insurer of an insolvent individual or corporate defendant. The change reflects the reality of litigation where legal liability insurance is in place, which is that claims against defendants are often handled by their insurers.