Lord McNally, in one of his last acts as Justice Minister before being replaced by Simon Hughes and becoming the new chair of the Youth Justice Board, has admitted that there are still no concrete plans to implement The Third Party (Rights against Insurers) Act.
The Act received royal assent in March 2010 but has had its enactment delayed by the current Government, which has looked into amending it before bringing it into force.
At present, an injured person has no direct claim against an insolvent company. If the Act were to be put into force, then a third party would be able to issue a claim against an insurer without first obtaining a judgment against the insolvent party.
"We intend to introduce legislation to amend the Third Parties (Rights Against Insurers) Act 2010 as soon as parliamentary time permits and to commence the act as amended as soon as reasonably possible thereafter on the same day across the whole of the United Kingdom," McNally told the House of Lords last week.
A spokesman for the Association of Personal Injury Lawyers (APIL) told the Law Gazette that it had lobbied for many years on the issue.
"Enacting the Third Parties (Rights Against Insurers) Act 2010 would make the onerous process unnecessary and we urge the MoJ to move quickly on this if it is serious about improving the system for dying claimants," said the spokesmen.