Third Parties (Rights against Insurers) (CAP. 426 1

CHAPTER 426

THE THIRD PARTIES (RIGHTS AGAINST INSURERS) ACT

Arrangement of Sections
Section

1. Short title.
2. Rights of third parties against insurers on bankruptcy,

etc., of the insured.
3. Duty to give necessary information to third parties.
4. Settlement between insurers and insured persons.

THIRD PARTIES (RIGHTS AGAINST INSURERS)

(23rd December, 1949.) 6/1949.
32/1956.

1. This Act may be cited as the Third Parties (Rights short tide.
against Insurers) Act.

2. (1) Where under any contract of insurance a per- Rightsofthird
parties against

son (hereinafter referred to as the insured) is insured
against liabilities to third parties which he may incur, then- bankmptc~, etc.,

of the insured.

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

(6) in the case of the insured being a company, in
the event of a winding-up order being made, or a reso-
lution 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

LAWS OF ANTIGUA AND BARBUDA

2 CAP. 426) Third Parties (Rights against Insurers)

charge, of any property comprised in or subject to the
charge;

if, either before or after that event, any such liability, as afore-
said is incurred by the insured, his rights against the insurer
under'the contract in respect of the liability shall, notwith-
standing anything in any Act or rule of law to the contrary,
be transferred to and vest in the third party to whom the lia-
bility was so incurred.

(2) Where an order is made under section 113 of the
Cap. 41. Bankruptcy Act, 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 con-
tract in respect of that liability shall, notwithstanding any-
thing in the said Act, 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 indi-
rectly, to avoid the contract or 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 subsec-
tion ( I ) , or upon the making of an order under section 113

Cap. 41. of the Bankruptcy Act, in respect of his estate, the contract
shall be of no effect.

(4) Upon a transfer under subsection (1) or subsection
(2), the insurer shall, subject to the provisions of section 4,
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.

LAWS OF ANTIGUA AND BARBUDA

Third Parties (Rights against Insurers) (CAP. 426 3

(5) For the purposes of this Act, the expression "liabili-
ties 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 con-
tract of insurance.

(6) This Act shall not apply-

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

(6) to any case to which subsections (1) and (2) of
section 29 of the Workmen's Compensation Act, Cap.475.
applies.

3. (1) In the event of any person becoming bankrupt Duty to give neces
sary information or making a composition or arrangement with his creditors, to third parties.

or in the event of an order being made under section 113 of
the Bankruptcy Act, in respect of the estate of any person, or Cap. 41.
in the event of a winding-up order being made, or a resolu-
tion for a voluntary winding-up being passed, with respect to
any company or of a receiver or manager of the company's
business or undertaking being duly appointed or of posses-
sion being taken by or on behalf of the holders of any deben-
tures secured by a floating charge of any property comprised
in or subject to the charge it shall be the duty of the
bankrupt, debtor, personal representative of the deceased
debtor or company, and, as the case may be, of the trustee in
bankruptcy, trustee, liquidator, receiver, or manager, or per-
son in possession of the property to give at the request of any
person claiming that the bankrupt, debtor, deceased debtor,
or company is under a liability to him such information as
may reasonably be required by him for the purpose of ascer-
taining whether any rights have been transferred to and vest-
ed in him by this Act and for the purpose of enforcing such
rights, if any, and any contract of insurance, in so far as it
purports, whether directly or indirectly, to avoid the contract
or to alter the rights of the parties thereunder upon the giv-
ing of any such information in the events aforesaid or other-
wise to prohibit or prevent the giving thereof in the said
events shall be of no effect.

(2) If the information given to any person in pursuance
of subsection (1) discloses reasonable ground for supposing

LAWS OF ANTIGUA AND BARBUDA

4 CAP. 426) Third Parties (Rights against Insurers)

that there have or may have been transferred to him under
this Act rights against any particular insurer, that insurer
shall be subject to the same duty as is imposed by the said
subsection on the persons therein mentioned.

(3) The duty to give information imposed by this sec-
tion shall include a duty to allow all contracts of insurance,
receipts for premiums, and other relevant documents in the
possession or power of the person on whom the duty is so
imposed to be inspected and copies thereof to be taken.

(4) If without reasonable excuse any person fails to
comply with the provisions of this section or wilfully makes
any false statement in reply to any such demand as aforesaid
he shall be guilty of an offence and shall be liable on summa-
ry conviction to a fine not exceeding three thousand dollars
or to imprisonment for a term not exceeding three months.

Settlement
between insurers

4. Where the insured has become bankrupt or where
and insured in the case of the insured being a company, a winding-up
persons. order has been made or a resoluGon for ivoluntary win&&

up has been passed, with respect to the company, no agree-
ment made between the insurer and the insured after
liability has been incurred to a third party and after the com-
mencement of the bankruptcy or winding-up, as the case
may be, nor any waiver, assignment, or other disposition
made by, or payment made to the insured after the com-
mencement aforesaid shall be effective to defeat or affect the
rights transferred to the third party under this Act, but those
rights shall be the same as if no such agreement, waiver,
assignment, disposition or payment had been made.