Schedule 1: Information and disclosure for third parties Section 16: Voluntarily-incurred liabilities
81.Tarbuck v Avon Plc [2001] 2 All ER 503 held that the Third Parties (Rights against Insurers) Act 1930 did not apply to claims for legal expenses insurance. The Law Commissions indicated that the same reasoning would apply to insurance for other voluntarily-incurred expenses, such as health or car repair insurance. The decision in Tarbuck was distinguished by the Court of Appeal in Re OT Computers Ltd (In Administration) [2004] EWCA Civ 653. Section 16 therefore provides that a third party will be able to make a direct claim against the insurer even if the insurance covered liabilities voluntarily-incurred by the insured.