Rights of third parties against insurers
Authors
Citation
Asian Architect & Contractor, v.21, no.11, 1991, pp. 24, 42
Abstract
In the construction industry it is not unusual for one party to make a claim against another party in connection with some matter which has occurred during construction. Typically, persons such as builders will be insured against such claims. If that person is insured but later goes bankrupt or into liquidation then, formerly, the proceeds of any claims under the insurance policy were paid to the insured's liquidator and distributed among the insured's general creditors. The claimant was then forced to make its claim against the insured's estate as one of those general creditors, perhaps receiving a dividend of only a small percentage of its claim. This situation arose because the third party is often not named in the policy as one of the insured, nor a party to the contract of insurance, and therefore, under ordinary common law principles, was generally unable to proceed directly against the insurer. The Third Parties (Rights against Insurers) Ordinance (Hong Kong), Cap.273 ('the Ordinance'), which was enacted in 1951, modifies this position. In this article, Glenn Haley and Geoffrey Shaw examine the effects of the Ordinance and some cases decided under it. Messrs Shaw and Haley are solicitors with Messrs McKenna & Co Hong Kong. Both have extensive experience in construction and engineering law.
(1) Statutory protection
(2) Other provisions of Ordinance
(3) Cases: the Ordinance in practice
Description
Subject
Type
Article
Format
Date
1991
Language
en