The Third Parties (Rights against Insurers) Regulations 2016
The Third Parties (Rights against Insurers) Act 2010 (“the 2010 Act”) applies where an insured person incurs a liability to another and is or becomes a “relevant person” (by falling within the insolvency and similar circumstances listed in sections 4 to 7 of the 2010 Act). In such circumstances, the 2010 Act transfers the rights of the relevant person under the insurance contract to the person to whom the liability is incurred, thus enabling the latter to enforce those rights directly against the insurer, rather than the proceeds of the insurance policy being treated as the assets of the insured for distribution to creditors in the insolvency. The Third Parties (Rights against Insurers) Regulations 2015 (“the Regulations”) amend the 2010 Act to add further circumstances by which a corporate or unincorporated body may become a relevant person and make some related minor amendments to the 2010 Act.