Q&As

In relation to a PI claim what is the correct process when issuing proceedings against a company which is in liquidation and is likely to be dissolved after proceedings have been issued? Does the Third Parties (Rights against Insurers) Act 2010 apply in these circumstances and require proceedings to be issued against the company’s insurers?

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Published on LexisPSL on 14/03/2017

The following PI & Clinical Negligence Q&A provides comprehensive and up to date legal information covering:

  • In relation to a PI claim what is the correct process when issuing proceedings against a company which is in liquidation and is likely to be dissolved after proceedings have been issued? Does the Third Parties (Rights against Insurers) Act 2010 apply in these circumstances and require proceedings to be issued against the company’s insurers?

In relation to a PI claim what is the correct process when issuing proceedings against a company which is in liquidation and is likely to be dissolved after proceedings have been issued? Does the Third Parties (Rights against Insurers) Act 2010 apply in these circumstances and require proceedings to be issued against the company’s insurers?

The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) simplifies and modernises the procedure for third-party victims to seek compensation from an insurer where the insured has become insolvent or ceased to exist. It allows a claimant to claim an indemnity directly from a defendant’s liability insurer if the defendant becomes insolvent, which prevents any monies paid out by insurers in these circumstances from becoming an asset in the insolvent estate.

One of the key aspects of TP(RAI)A 2010, compared with its 1930 predecessor, the Third Parties (Rights against Insurers) Act 1930 (TP(RAI)A 1930) (which also granted this right), is that

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