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THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT (NORTHERN IRELAND) 1930 - SECT 1



1.(1) Where under any contract of insurance a person (in this Act referred to
as "the insured") is insured against liabilities to third parties which he may
incur, then

(a)in the event of the insured becoming bankrupt or making a composition or
arrangement with his creditors; or

(b)in the case of the insured being a company, in the event of a winding-up
order being made, or a resolution for a voluntary winding-up being passed with
respect to the company, or of a receiver or manager of the company's business
or undertaking being duly appointed, or of possession being taken, by or on
behalf of the holders of any debentures secured by a floating charge, of any
property comprised in or subject to the charge;

(2) Where an order is made under section twenty-one of the Bankruptcy
Amendment Act (Northern Ireland), 1929, for the administration of the estate
of a deceased debtor according to the law of bankruptcy, then, if any debt
provable in bankruptcy is owing by the deceased in respect of a liability
against which he was insured under a contract of insurance as being a
liability to a third party, the deceased debtor's rights against the insurer
under the contract in respect of that liability shall, notwithstanding
anything in the Bankruptcy Acts (Northern Ireland), 1857 to 1929, be
transferred to and vest in the person to whom the debt is owing.

(3) In so far as any contract of insurance made after the commencement of
this Act in respect of any liability of the insured to third parties purports,
whether directly or indirectly, to avoid the contract or to alter the rights
of the parties thereunder upon the happening to the insured of any of the
events specified in paragraph (a) or paragraph (b) of sub-section (1) of this
section or upon the making of an order under section twenty-one of the
Bankruptcy Amendment Act (Northern Ireland), 1929, in respect of his estate,
the contract shall be of no effect.

(4) Upon a transfer under sub-section (1) or sub-section (2) of this section,
the insurer shall, subject to the provisions of section three of this Act, be
under the same liability to the third party as he would have been under to the
insured, but

(a)if the liability of the insurer to the insured exceeds the liability of the
insured to the third party, nothing in this Act shall affect the rights of the
insured against the insurer in respect of the excess; and

(b)if the liability of the insurer to the insured is less than the liability
of the insured to the third party, nothing in this Act shall affect the rights
of the third party against the insured in respect of the balance.

(5) For the purposes of this Act, the expression "liabilities to third
parties," in relation to a person insured under any contract of insurance,
shall not include any liability of that person in the capacity of insurer
under some other contract of insurance.

(6) This Act shall not apply

(a)where a company is wound up voluntarily merely for the purposes of
reconstruction or of amalgamation with another company; or

(b)to any case to which sub-sections (1) and (2) of section seven of the
Workmen's Compensation Act (Northern Ireland), 1927, apply.


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© 1930 Crown Copyright

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