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Review of third party claims on insurance money

The Attorney General has asked the Law Reform Commission to review section 6 of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW).

The review is being conducted under the section 10 of the Law Reform Commission Act 1987.

Terms of reference

Pursuant to section 10 of the Law Reform Commission Act 1967, the NSW Law Reform Commission is asked to review and report on section 6 of the Law Reform (Miscellaneous Provisions) Act 1946 (NSW), which provides a mechanism enabling third parties to assert and enforce a statutory charge over insurance moneys payable to an insured person in circumstances where the insured's solvency is in question.

The Commission is asked to consider whether the section should be repealed or amended, and in this context consider whether the policy objectives remain valid and, if so, whether those objectives could be better achieved.

In undertaking this review, the Commission should have regard to:

All relevant issues relating to the uncertain practical application of section 6.
The impact or potential impact of relevant case law and developments in law, policy and practice by the Commonwealth, in other States and Territories of Australia and overseas.
The impact of any repeal of section 6 on protections for third party claimants seeking to recover the proceeds of a liability insurance policy to which they are entitled.
Whether any repeal or amendment of section 6 should apply to contracts already in force.
Any other matters the NSW Law Reform Commission considers relevant to the Terms of Reference.