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Legislative Developments - May 2017

Civil Liability (Third Party Claims Against Insurers) Bill 2017

The NSW Parliament has passed new legislation that will allow claimants in certain circumstances to recover directly from insurers in court proceedings. This will give effect to recommendations previously made by the NSW Law Reform Commission to repeal section 6 (Part 4) of the Law Reform (Miscellaneous Provisions) Act 1946 and replace it with a new mechanism for such claims.

The amending legislation will enable a third party to bring proceedings directly against an insurer in respect of the claim for damages, compensation or costs they would otherwise have against the insured person rather than seeking to enforce a specially created statutory charge.

This was passed by the Legislative Assembly on 24 May 2017 and presently awaiting assent.

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