ABSTRACT
An Act to confer on third parties rights against insurers of third-party risks in the event of the insured becoming insolvent, and in certain other events. [10th July 1930]
NOTE: This Act is repealed and replaced by the Third Parties (Rights Against Insurers) Act 2010, as from a date to be
Rights of third parties against insurers on bankruptcy, etc. of the insured 1.—(1) Where under any contract of insurance a person (hereinafter referred to as the insured) is
insured against liabilities to third parties which he may incur, then-(a) in the event of the insured becoming bankrupt or making a composition or arrangement with
his creditors; or (b) in the case of the insured being a company, in the event of a winding-up order [or an
administration order] being made, or a resolution for a voluntary winding-up being passed, with respect to the company, or of a receiver or manager of the company’s business or undertaking being duly appointed, or of possession being taken, by or on behalf of the holders of any debentures secured by a floating charge, of any property comprised in or subject to the charge [or of a voluntary arrangement proposed for the purposes of Part I of the Insolvency Act 1986 being approved under that Part];
if, either before or after that event, any such liability as aforesaid is incurred by the insured, his rights against the insurer under the contract in respect of the liability shall, notwithstanding anything in any Act or rule of law to the contrary, be transferred to and vest in the third party to whom the liability was so incurred.
