Third Parties (Rights against Insurers) Act 2010
2010 CHAPTER 10
Commentary on Sections
Section 4: Individuals
31.Subsections (1), (2) and (3) list the circumstances in which an individual is a “relevant person” for the purposes of the Act in England and Wales, Scotland and Northern Ireland respectively.
32.Subsection (4) provides that a person in respect of whom a debt relief order made under Part 7 of the Insolvency Act 1986 is in force is only a relevant person if the liability is incurred before he or she becomes subject to the order. This is because a debt relief order has no effect on liabilities incurred after the order is made.
33.After the recall or reduction of a sequestration award made against an insured under Scots law, the insured will no longer be subject to one of the events capable of triggering a statutory transfer. Accordingly subsection (5) provides that the rights that were transferred under section 1 are re-transferred to the insured.
34.Subsection (6) states that, where an insured is discharged under Scots law, but the discharge order is subsequently recalled or reduced, then the order shall be treated as never having been made and thus will have no effect on the rights of a third party under the Act.
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