Consumer Insurance Contracts Act 2019

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Supplemental provisions in relation to section 21

22. (1) This section applies where a person claims that the person is a person (the “third party”) in whom the rights (against the insurer) of the other person referred to in subsection (1) of section 21 (the “insured”) have been vested under that subsection.

(2) Where this section applies and the third party has not yet established the insured’s liability which is insured under the contract of insurance concerned, the third party may bring proceedings in the appropriate court against the insurer for either or both of the following—

(a) a declaration as to the insured’s liability to the third party,

(b) a declaration as to the insurer’s potential liability to the third party.

(3) In such proceedings the third party is entitled, subject to any defence on which the insurer may rely, to a declaration under subsection (2)(a) or (b) on proof of the insured’s liability to the third party or (as the case may be) the insurer’s potential liability to the third party.

(4) Where proceedings are brought under subsection (2)(a) the insurer may rely on any defence on which the insured could rely if those proceedings were proceedings brought against the insured in respect of the insured’s liability to the third party.

(5) Where the court makes a declaration under this section, the effect of which is that the insurer is liable to the third party, the court may give the appropriate judgment against the insurer.

(6) When bringing proceedings under subsection (2)(a), the third party may also make the insured a defendant to those proceedings.

(7) If (but only if) the insured is a defendant to proceedings under this section (whether by virtue of subsection (6) or otherwise), a declaration under subsection (2) binds the insured as well as the insurer.

(8) In this section—

(a) “appropriate court”, without prejudice to subsection (9)(c), means—

(i) in a case in which the Circuit Court would have jurisdiction in the proceedings concerned were—

(I) the proceedings to be treated as an action founded on tort, and

(II) the monetary amount for which the liability, as referred to in subsection (2)(a) or (b), is sought to be established in the proceedings to be treated as an amount of damages sought to be recovered in such an action,

the Circuit Court,

(ii) in a case in which the District Court would have jurisdiction in the matter if each of the matters referred to in clause (I) and clause (II) of subparagraph (i) were to be treated as described in that clause (I) and clause (II), respectively, the District Court,

(iii) in any case, the High Court,

and subsection (9) supplements this paragraph,

(b) references to the insurer’s potential liability to the third party are references to the insurer’s liability in respect of the insured’s liability to the third party, if established.

(9) (a) References in subsection (8)(a), so far as it applies to the Circuit Court, to an action founded on tort shall be construed as references to an action founded on tort that is not a personal injuries action within the meaning of the Civil Liability and Courts Act 2004 but that exclusion—

(i) is for the purpose of the application to subsection (8)(a) of any enactment that specifies different jurisdictional limits, in respect of the Circuit Court, in actions founded on tort depending on whether the actions are or are not personal injuries actions (within the foregoing meaning), and

(ii) does not limit the types of wrong (within the meaning of the Civil Liability Act 1961 ), liability in respect of which may be the subject of a declaration by the Circuit Court under subsection (2).

(b) Subsection (8)(a)(ii) operates to confer power on the District Court to make a declaration referred to in subsection (2)(a) or (b) notwithstanding that there is not vested in the District Court, by the Courts of Justice Acts 1924 to 2014 or any other enactment, any general power to grant declaratory relief.

(c) Any enactment that provides means whereby the parties to a cause or proceedings may consent to the Circuit Court or the District Court, as the case may be, having jurisdiction, without restriction as to the monetary amount of the claim, in the cause or proceedings shall apply for the purposes of subsections (2) and (8) as it applies otherwise and where those means are duly used by the parties subsection (8)(a)(i) or (ii), as the case may be, shall be construed and have effect accordingly.