- Latest available (Revised)
- Original (As enacted)
This is the original version (as it was originally enacted).
(1)Subsection (2) applies where a person brings proceedings for a declaration under section 2(2)(a), or for a declarator under section 3(2)(a), and the proceedings are started or, in Scotland, commenced—
(a)after the expiry of a period of limitation applicable to an action against the insured to enforce the insured’s liability, or of a period of prescription applicable to that liability, but
(b)while such an action is in progress.
(2)The insurer may not rely on the expiry of that period as a defence unless the insured is able to rely on it in the action against the insured.
(3)For the purposes of subsection (1), an action is to be treated as no longer in progress if it has been concluded by a judgment or decree, or by an award, even if there is an appeal or a right of appeal.
(4)Where a person who has already established an insured’s liability to that person brings proceedings under this Act against the insurer, nothing in this Act is to be read as meaning—
(a)that, for the purposes of the law of limitation in England and Wales, that person’s cause of action against the insurer arose otherwise than at the time when that person established the liability of the insured,
(b)that, for the purposes of the law of prescription in Scotland, the obligation in respect of which the proceedings are brought became enforceable against the insurer otherwise than at that time, or
(c)that, for the purposes of the law of limitation in Northern Ireland, that person’s cause of action against the insurer arose otherwise than at the time when that person established the liability of the insured.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: