Road Traffic Act 1988 (c. 52)

Part VI E+W+S Third-Party Liabilities

Modifications etc. (not altering text)

C1 Pt. VI: power to modify conferred (E.W.) by National Health Service Act 1977 (c. 49, SIF 113:2), ss. 23(4), 27(5) (as amended by Road Traffic (Consequential Provisions) Act 1988 (c. 54, SIF 107:1), s. 4, Sch. 3 para. 18(1)(2))

C2 Pt. VI modified (16.8.2006) by The Dover Harbour Revision Order 2006 (S.I. 2006/2167), art. 27

Compulsory insurance or security against third-party risks E+W+S

153 Bankruptcy, etc., of insured or secured persons not to affect claims by third parties. E+W+S

(1) Where, after a certificate of insurance or certificate of security has been delivered under section 147 of this Act to the person by whom a policy has been effected or to whom a security has been given, any of the events mentioned in subsection (2) below happens, the happening of that event shall, notwithstanding anything in the M1 Third Parties (Rights Against Insurers) Act 1930, not affect any such liability of that person as is required to be covered by a policy of insurance under section 145 of this Act.

(2) In the case of the person by whom the policy was effected or to whom the security was given, the events referred to in subsection (1) above are—

(a) that he becomes bankrupt or makes a composition or arrangement with his creditors or that his estate is sequestrated or he grants a trust deed for his creditors,

(b) that he dies and—

(i) his estate falls to be administered in accordance with an order under section 421 of the M2 Insolvency Act 1986,

(ii) an award of sequestration of his estate is made, or

(iii) a judicial factor is appointed to administer his estate under section 11A of the M3 Judicial Factors (Scotland) Act 1889,

(c) that if that person is a company—

(i) a winding-up order F1 . . . is made with respect to the company [F2 or the company enters administration],

(ii) a resolution for a voluntary winding-up is passed with respect to the company,

(iii) a receiver or manager of the company’s business or undertaking is duly appointed, or

(iv) possession is 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.

(3) Nothing in subsection (1) above affects any rights conferred by the Third Parties (Rights Against Insurers) Act 1930 on the person to whom the liability was incurred, being rights so conferred against the person by whom the policy was issued or the security was given.

Textual Amendments

F1 Words in s. 153(2)(c)(i) omitted (15.9.2003) by virtue of The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 4, Sch. Pt. 1 para. 14 (subject to art. 6)

F2 Words in s. 153(2)(c)(i) inserted (15.9.2003) by The Enterprise Act 2002 (Insolvency) Order 2003 (S.I. 2003/2096), art. 4, Sch. Pt. 1 para. 14 (subject to art. 6)

Modifications etc. (not altering text)

C3 S. 153 excluded (23.6.1999) by S.I. 1999/1736, art. 8(1)(b)(2)(b)

Marginal Citations

M1 1930 c. 25.

M2 1986 c. 45.

M3 1889 c. 39.