The Third Parties (Rights against Insurers) Regulations 2016

• Citation: S.I. 2016/570
• Sections: 7

Section 1 Commencement and citation

(1) These Regulations come into force on the day appointed under section 21(2) of the 2010 Act for the coming into force of that Act, immediately after that Act and section 20 of, and Schedule 2 to, the Insurance Act 2015 come into force.

(2) They may be cited as the Third Parties (Rights against Insurers) Regulations 2016.

Section 2 Interpretation

In these Regulations, “the 2010 Act” means the Third Parties (Rights against Insurers) Act 2010.

Section 3 Relevant persons: bodies in insolvency or administration under sectoral legislation

(1) In section 6 of the 2010 Act (relevant persons: corporate bodies etc), after subsection (4) insert—

(4A) A body corporate or unincorporated body is a relevant person if it is in insolvency under Part 2 of the Banking Act 2009 .

(4B) A body corporate or unincorporated body is a relevant person if it is in administration under relevant sectoral legislation as defined in Schedule A1.

(2) Before Schedule 1 to that Act insert—

Administration under relevant sectoral legislation

For the purposes of section 6(4B)—

(a) a body is in administration under relevant sectoral legislation if the appointment of an administrator of the body under an enactment listed below has effect, and

(b) the body does not cease to be in administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.

Aviation

Chapter 1 of Part 1 of the Transport Act 2000

Energy

Chapter 3 of Part 3 of the Energy Act 2004

Chapter 5 of Part 2 of the Energy Act 2011

Part 2 of the Energy Act (Northern Ireland) 2011 (c.6 (N.I.) )

Financial Services

Part 2 of the Insolvency Act 1986 (as it has effect by virtue of section 249 of the Enterprise Act 2002 ), as applied by Schedule 15A to the Building Societies Act 1986

Part 3 of the Insolvency (Northern Ireland) Order 1989 ( S.I. 1989/2405 (N.I.19) ) (as it has effect by virtue of article 4 of the Insolvency (Northern Ireland) Order 2005 ( S.I. 2005/1455 (N.I.10) )), as applied by Schedule 15A to the Building Societies Act 1986

Part 3 of the Banking Act 2009

Investment Bank Special Administration Regulations 2011 ( S.I. 2011/245 )

Part 6 of the Financial Services (Banking Reform) Act 2013

Postal Services

Part 4 of the Postal Services Act 2011

Railways

Part 1 of the Railways Act 1993

Chapter 7 of Part 4 of the Greater London Authority Act 1999

Water and sewerage

Chapter 2 of Part 2 of the Water Industry Act 1991

Chapter 2 of Part 3 of the Water and Sewerage Services (Northern Ireland) Order 2006 ( S.I. 2006/3336 (N.I. 21) )

Section 4 Relevant persons: bodies that have been dissolved

After section 6 of the 2010 Act insert—

Corporate bodies etc that are dissolved

(6A)

(1) A body corporate or unincorporated body is a relevant person if the body has been dissolved, subject to the exceptions in subsections (2) and (3).

(2) The body is not a relevant person by virtue of subsection (1) if, since it was dissolved (or, if it has been dissolved more than once, since it was last dissolved), something has happened which has the effect that the body is treated as not having been dissolved or as no longer being dissolved.

(3) Subsection (1) applies to a partnership only if it is a body corporate.

(4) For the purposes of this section, “dissolved” means dissolved under the law of England and Wales, Scotland or Northern Ireland (whether or not by a process referred to as dissolution).

Section 5 Conditions affecting transferred rights

(1) Section 9 of the 2010 Act (conditions affecting transferred rights) is amended as follows.

(2) In subsection (3)—

(a) omit “or” at the end of paragraph (a), and

(b) after paragraph (b) insert—

, or

(c) an unincorporated body, other than a partnership, that has been dissolved.

(3) In subsection (7) omit the definition of “dissolved”.

(4) After that subsection insert—

(8) For the purposes of this section—

(a) “dissolved” means dissolved under the law of England and Wales, Scotland or Northern Ireland (whether or not by a process referred to as dissolution), and

(b) a body has been dissolved even if, since it was dissolved, something has happened which has the effect that (but for this paragraph) the body is treated as not having been dissolved or as no longer being dissolved.

Section 6 Notices requiring disclosure

(1) Paragraph 3 of Schedule 1 to the 2010 Act (notices requiring disclosure: defunct bodies) is amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a), omit “that P claims has been incurred to P by a body corporate, and”, and

(b) for paragraph (b) substitute—

(b) P claims the liability has been incurred to P by—

(i) a body corporate, or

(ii) an unincorporated body other than a partnership, and

(c) the body has been dissolved,

(3) In sub-paragraph (2)(b), for “became defunct” substitute “was dissolved (or, if it has been dissolved more than once, immediately before it was last dissolved)”.

(4) Omit sub-paragraphs (4) and (5).

(5) At the end insert—

(6) For the purposes of this paragraph—

(a) “dissolved” means dissolved under the law of England and Wales, Scotland or Northern Ireland (whether or not by a process referred to as dissolution), and

(b) a body has been dissolved even if, since it was dissolved, something has happened which has the effect that (but for this paragraph) the body is treated as not having been dissolved or as no longer being dissolved.

(6) In the heading of the paragraph, for “defunct bodies” substitute “bodies that have been dissolved”.

Section 7 Consequential amendments

(1) In section 6 of the 2010 Act (relevant persons: corporate bodies etc)—

(a) for subsection (1) substitute—

(1) A body corporate or unincorporated body is a relevant person if a compromise or arrangement between the body and its creditors (or a class of them) is in force, having been sanctioned in accordance with section 899 of the Companies Act 2006 .

(b) in subsections (5) and (6), for “subsection (1)(a)” substitute “subsection (1)”.

(2) In section 14(2)(b) of that Act (effect of transfer on insured’s liability), for “6(1)(a)” substitute “6(1)”.

(3) In section 19A(1) of that Act (interpretation)—

(a) omit “, 9(7)”, and

(b) for “and paragraph 3(2)(b), (4) and (5)” substitute “, Schedule A1 and paragraph 3(2)(b)”.