Bringing Another Seat To The Table: Expansion Of Third Parties' Rights Under CICA 2019

• Published date: 03 September 2021
• Law Firm: William Fry
• Author: Mr Paul Convery, Patrick Murphy and John Larkin

A core principle of Irish contract law is that a person who is not a party to a contract does not have enforceable legal rights, even where the contract is intended to benefit that person. This principle applied equally to most insurance contracts. This core principle is now qualified in respect of certain insurance contracts with the coming into force of sections 21 and 22 of the Consumer Insurance Contracts Act 2019 (CICA) in September 2020.

Right of third party to claim against insurer

Under Section 21 of the CICA where a person (Insured) is insured against a liability that may be, and is incurred by the Insured to a third party consumer, the Insured's rights against the insurer will transfer to the third party consumer where a) the Insured is dead, cannot be found, is insolvent or b) it is just and equitable to do so.

Section 21(3) bestows a right to information on a third party to seek information from the insurer (or any other person) regarding;

• the existence of a contract of insurance;
• the identity of the...