{
  "url": "https://openlegislation.uk/draft-third-parties-rights-against-insurers-regulations-2016/note",
  "json_url": "https://openlegislation.uk/draft-third-parties-rights-against-insurers-regulations-2016/note.json",
  "legislation": "ukdsi/2016/9780111144152",
  "legislation_title": "The Third Parties (Rights against Insurers) Regulations 2016",
  "legislation_url": "https://openlegislation.uk/draft-third-parties-rights-against-insurers-regulations-2016",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThe 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.\nRegulation 3 expands the categories of “relevant person” identified in section 6 of the 2010 Act (corporate and unincorporated bodies) to include insolvency under Part 2 of the Banking Act 2009 and administration under the sector specific administration provisions listed in the new Schedule A1.\nRegulation 4 inserts new section 6A in the 2010 Act, extending its coverage to all dissolved corporate and unincorporated bodies except when the body in question is an unincorporated partnership or is treated as not having been dissolved as a result of subsequent events (the latter may still be “relevant persons” by virtue of another provision).\nSection 9(3) of the 2010 Act relieves the third party of the need to comply with a condition in the policy to provide information or assistance to the insurer if that condition cannot be satisfied because the insured no longer exists. Paragraph 3 of Schedule 1 to the 2010 Act provides that in the context of legal proceedings in relation to claims against defunct bodies a third party can require their former employees or officers, insolvency practitioner or official receiver to provide documents relevant to the insured’s liability. Both provisions currently apply only to bodies corporate. Unlike section 9(3), paragraph 3 does not apply if a body is restored or otherwise treated as existing.\nFollowing the changes made by regulation 4, regulations 5 and 6 extend the scope of section 9(3) and paragraph 3 of Schedule 1 to include dissolved unincorporated bodies (except partnerships). In light of the generally short lived duration of restorations, and to help third parties, regulations 5 and 6 align the definition of dissolved in these two cases so that they both apply even if a formerly defunct body is subsequently treated as not having been dissolved, or no longer being dissolved.\nRegulation 7 amends the 2010 Act consequentially upon the above changes.\nA full regulatory impact assessment has not been produced for this instrument because the amounts involved fall below the threshold at which an assessment has to be prepared.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2016/9780111144152/note",
    "retrieved_at": "2026-10-30T15:08:26.490940+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}