Q&As

Will an insurance company accept a claim brought against an insolvent company by a purchaser when the product became faulty/damage arose while the company was still solvent/and paying their policy premiums?

read titleRead full title
Published on LexisPSL on 16/06/2020

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • Will an insurance company accept a claim brought against an insolvent company by a purchaser when the product became faulty/damage arose while the company was still solvent/and paying their policy premiums?

The Third Parties (Rights Against Insurers) Act 2010 (TP(RAI)A 2010) applies if the company is in administration, liquidation or subject to a company voluntary arrangement (CVA). One of the main improvements under TP(RAI)A 2010 is that a third party can bring proceedings against the insurer without establishing liability. However, the insured's liability will still have to be established (both its existence and amount) before those rights can actually be enforced, although this can now be done by way of a relatively cheap and quick court declaration (as well as judgment, settlement or arbitration award). In practice, this means that the third party only needs to issue one set of proceedings against the insurer seeking declarations from the court both on:

Related documents:

Popular documents