New right for direct action against insurers to come into force

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As a lawyer involved in elements of industrial disease work I was delighted to hear that, finally, the Third Parties (Rights Against Insurers) Act 2010 is finally due to come into force. 

I say finally because it has been almost 20 years since the Law Commission first talked about the need to extend the facility to take direct action against insurers. The Act completed its passage through Parliament six years ago but due to drafting errors will now come into force on the 1st August 2016.

The Act replaces the 1930 Act and will allow someone with a long tail disease to sue the insurer of their previous employer direct, if that employer has gone out of business.  It will avoid the need to resurrect the company which,believe me from experience is costly and time consuming!

This is excellent news and will be a relief to those suffering from a terminal diagnosis where time is very much of the essence.

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