Derek Adamson discusses the current issues with the Third Parties (Rights against Insurers) Act 2010, & suggests some improvements
On 1 August 2016, the Third Parties (Rights against Insurers) Act 2010 (the 2010 Act) came into force. This well-intentioned legislation 80 years after its predecessor of the same name (the 1930 Act) was supported by insurers and claimants as it streamlined the process for recovery of damages in long-tail disease litigation. The new statute permits an action against the insurer of an insolvent tortfeasor directly rather than restoring the insured company and obtaining judgment before being able to enforce against the insurer. The legal costs of restoration and the resultant delay would be avoided. A win-win for all… or so it seemed.
During 2017, as the impact of the new law bedded in, two issues relating to mesothelioma and asbestos-related lung cancer claims emerged. A key transitional provision is that where the insolvency event and the incurring of liability both take place before 1 August 2016, the 1930 Act continues to apply.
