{"id":"nsw:act-2017-019","name":"Civil Liability (Third Party Claims Against Insurers) Act 2017","slug":"civil-liability-third-party-claims-against-insurers-act-2017","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"19 of 2017","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":29259,"registerId":"nsw-act-2017-019-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Act","content":"#### 1 Name of Act\n\n1 Name of Act\n\n> This Act is the [Civil Liability (Third Party Claims Against Insurers) Act 2017](/view/html/inforce/current/act-2017-019).","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n2 Commencement\n\n> This Act commences on the date of assent to this Act.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Definitions","content":"#### 3 Definitions\n\n3 Definitions\n\n> > (1) In this Act:\n> > \n> > claimant—see section 4.\n> > \n> > court means a court or tribunal of New South Wales.\n> > \n> > insured liability means a liability in respect of which an insured person is entitled to be indemnified by the insurer.\n> > \n> > insured person means a person who is, in respect of a liability to a third party, entitled to indemnity pursuant to the terms of a contract of insurance, and includes a person who is not a party to the contract of insurance but is specified or referred to in the contract, whether by name or otherwise, as a person to whom the benefit of the insurance cover provided by the contract extends.\n> > \n> > liability means a liability to pay damages, compensation or costs.\n> > \n> > Note—\n> > \n> > The [Interpretation Act 1987](/view/html/inforce/current/act-1987-015) contains definitions and other provisions that affect the interpretation and application of this Act.\n> \n> > (2) Notes included in this Act do not form part of this Act.","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Claimant may recover from insurer in certain circumstances","content":"#### 4 Claimant may recover from insurer in certain circumstances\n\n4 Claimant may recover from insurer in certain circumstances\n\n> > (1) If an insured person has an insured liability to a person (the claimant), the claimant may, subject to this Act, recover the amount of the insured liability from the insurer in proceedings before a court.\n> \n> > (2) The amount of the insured liability is the amount of indemnity (if any) payable pursuant to the terms of the contract of insurance in respect of the insured person’s liability to the claimant.\n> \n> > (3) In proceedings brought by a claimant against an insurer under this section, the insurer stands in the place of the insured person as if the proceedings were proceedings to recover damages, compensation or costs from the insured person. Accordingly (but subject to this Act), the parties have the same rights and liabilities, and the court has the same powers, as if the proceedings were proceedings brought against the insured person.\n> \n> > (4) This section does not entitle a claimant to recover any amount from a re-insurer under a contract or arrangement for re-insurance.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Leave to proceed","content":"#### 5 Leave to proceed\n\n5 Leave to proceed\n\n> > (1) Proceedings may not be brought, or continued, against an insurer under section 4 except by leave of the court in which the proceedings are to be, or have been, commenced.\n> \n> > (2) An application for leave may be made before or after proceedings under section 4 have been commenced.\n> \n> > (3) Subject to subsection (4), the court may grant or refuse the claimant’s application for leave.\n> \n> > (4) Leave must be refused if the insurer can establish that it is entitled to disclaim liability under the contract of insurance or under any Act or law.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Time for commencing proceedings","content":"#### 6 Time for commencing proceedings\n\n6 Time for commencing proceedings\n\n> > (1) Proceedings to recover an amount from the insurer under section 4 must be commenced within the same limitation period that applies under the [Limitation Act 1969](/view/html/inforce/current/act-1969-031) or other Act to the claimant’s cause of action against the insured person in respect of the insured liability.\n> \n> > (2) Subsection (1) does not apply if the claimant has brought proceedings against the insured person in respect of the insured liability before the expiry of the limitation period applying to those proceedings, including any extension of the limitation period granted under the [Limitation Act 1969](/view/html/inforce/current/act-1969-031) or other Act by a court.","sortOrder":5},{"sectionNumber":"7","sectionType":"section","heading":"Matters on which insurer may rely","content":"#### 7 Matters on which insurer may rely\n\n7 Matters on which insurer may rely\n\n> In proceedings brought under section 4, the insurer is entitled to rely on any defence or any other matter in answer to the claim or in reduction of its liability to the claimant:\n> \n> > (a) that the insurer would have been entitled to rely on in a claim made by the insured person under the contract of insurance, or\n> \n> > (b) that the insured person would have been entitled to rely on in proceedings brought by the claimant against the insured person in respect of the insured liability.","sortOrder":6},{"sectionNumber":"8","sectionType":"section","heading":"Judgment against insured person no bar to claim against insurer","content":"#### 8 Judgment against insured person no bar to claim against insurer\n\n8 Judgment against insured person no bar to claim against insurer\n\n> A judgment or order for damages, compensation or costs in favour of the claimant against the insured person in respect of an insured liability does not prevent the claimant from recovering an amount for the damages, compensation or costs under section 4, except to the extent that the judgment or order has been satisfied.","sortOrder":7},{"sectionNumber":"9","sectionType":"section","heading":"Discharge of insurer’s liability","content":"#### 9 Discharge of insurer’s liability\n\n9 Discharge of insurer’s liability\n\n> Any payment made by the insurer to the claimant under this Act in respect of an insured liability discharges, to the extent of the payment, the liability of the insurer to make a payment to the insured person under the contract of insurance in respect of the insured liability.","sortOrder":8},{"sectionNumber":"10","sectionType":"section","heading":"Effect of payments made by insurer to insured person","content":"#### 10 Effect of payments made by insurer to insured person\n\n10 Effect of payments made by insurer to insured person\n\n> An insurer’s liability to a claimant under this Act is not reduced, discharged or otherwise affected by:\n> \n> > (a) any compromise or settlement between the insurer and the insured person in respect of the insured liability, or\n> \n> > (b) any payment by the insurer to the insured person in respect of the insured liability unless and to the extent that the amount of the payment is or has been paid by the insured person to the claimant in respect of the insured liability.","sortOrder":9},{"sectionNumber":"11","sectionType":"section","heading":"Application of Act","content":"#### 11 Application of Act\n\n11 Application of Act\n\n> The rights conferred on claimants under this Act do not affect, and are in addition to, the rights conferred under the [Workers Compensation Act 1987](/view/html/inforce/current/act-1987-070) or any other law on a person who is not a party to a contract of insurance to make a claim against an insurer in respect of an insured liability.","sortOrder":10},{"sectionNumber":"12","sectionType":"section","heading":"Preservation of existing proceedings","content":"#### 12 Preservation of existing proceedings\n\n12 Preservation of existing proceedings\n\n> Section 6 of the [Law Reform (Miscellaneous Provisions) Act 1946](/view/html/inforce/current/act-1946-033) (as in force immediately before its repeal by this Act) continues to apply to actions brought against insurers under that section before the commencement of this Act as if that section had not been repealed.","sortOrder":11},{"sectionNumber":"Schedule 1","sectionType":"schedule","heading":null,"content":"# Schedule 1\n\nSchedule 1 (Repealed)\n\n**sch 1:** Rep 1987 No 15, sec 30C.","sortOrder":12}],"analysis":{"kimi_summary":{"_metrics":{"source":"grok-batch-everything"},"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The Act maintains the original purpose of enabling third-party claimants to recover directly from liability insurers for insured liabilities; it updates and replaces the repealed s 6 of the Law Reform (Miscellaneous Provisions) Act 1946 while preserving existing proceedings and adding procedural clarity without materially expanding the legislation's reach."},"complexity_factors":["Multiple defined terms in s 3 (claimant, insured liability, insured person, liability) that depend on each other and on external contracts of insurance","Cross-references to the Limitation Act 1969, Interpretation Act 1987, Workers Compensation Act 1987 and the repealed s 6 of the Law Reform (Miscellaneous Provisions) Act 1946","Conditional procedural hurdles including mandatory court leave under s 5 with a specific refusal ground if the insurer can disclaim liability","Interlocking provisions in ss 7–10 that adjust defences, judgments, discharges and the effect of payments, each containing exceptions or carve-outs"],"plain_english_summary":"**This Act lets a person owed money for damages, compensation or legal costs (the claimant) sue an insurance company directly** instead of (or as well as) the person or business who caused the harm, but only if that person has insurance that covers the debt. \n\nIt applies in New South Wales when someone with insurance can't or won't pay what a court says they owe. The claimant must first get a judge's permission to start the case against the insurer. The insurer then steps into the shoes of the insured person, meaning it can use the same defences the insured could have used. \n\nThe law sets time limits, explains what happens if the insured has already been sued or paid, and makes clear that payments to the claimant reduce what the insurer owes the policyholder. It does not let people claim against re-insurers and sits alongside other rights (such as those under workers compensation laws). \n\nIt matters because it makes it easier for injured people, creditors and others to actually recover money when the at-fault party is insured, while protecting insurers from claims outside their policy."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"This Act creates a statutory cause of action allowing third‑party claimants to recover insured liabilities directly from insurers and treats insurers as standing in the insured person’s place for those proceedings (s4). It imposes a judicial leave requirement and ties limitation periods to those applicable against insured persons (s5, s6). The Act also preserves claimants’ other statutory rights against insurers (s11) and continues to apply certain existing proceedings begun under the repealed provision as saved (s12). These provisions therefore extend the avenues for recovery against insurers while introducing procedural gates and preserving pre-existing cases."},"complexity_factors":["Creates a new direct right to sue insurers (s4) but subject to a judicial gate (leave) (s5).","Alignment with existing limitation law and an exception for prior proceedings (s6).","Insurer may rely on all the defences it or the insured could have used, producing overlap with insurance contract law and defendant defences (s7).","Interplay between payments to claimants and payments to insureds—distinct rules for discharge and non‑reduction (s9, s10).","Interaction with other statutory claim rights (e.g. workers compensation) and preservation of existing proceedings under prior law (s11, s12).","Multiple procedural thresholds (leave, limitation period, possible disclaimers) that affect practical litigation strategy (s5, s6, s5(4))."],"plain_english_summary":"Allows a claimant owed damages to sue the insured’s insurer directly for the amount the insurer would owe under the policy, but only with court leave; limitation periods mirror suits against the insured. Insurers are treated as the insured in proceedings and may raise any policy or legal defenses to resist leave or liability.\n\nPayments to claimants discharge the insurer’s obligation to the insured; judgments against the insured don’t bar insurer suits unless satisfied. This creates a new recovery route for claimants, direct exposure and defensive incentives for insurers, and a court gatekeeping role."},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"Based on the available information, the Act appears to remain focused on its original stated purpose: enabling third parties to claim directly against insurers in civil liability contexts. No amendments have been made since it came into force on 2 June 2017, suggesting the scope has remained consistent with the original legislative intent."},"complexity_factors":["Involves interaction between civil liability law and insurance law — two distinct legal frameworks","Requires understanding of subrogation and indemnity concepts (legal ideas about who ultimately bears a loss)","The practical application depends heavily on the terms of the underlying insurance policy, which varies case by case","Procedural rules about when and how a direct claim can be made add complexity","Interaction with insolvency law (what happens when the insured person is bankrupt or a wound-up company) creates additional legal layers","Limited legislative text was available for review — full complexity of operative provisions could not be assessed from the document provided"],"plain_english_summary":"## Civil Liability (Third Party Claims Against Insurers) Act 2017 (NSW)\n\n**What does this law do?**\n\nThis NSW Act allows people who have been injured or harmed by someone else (the \"third party\") to make a claim **directly against that person's insurer** — rather than having to sue the person who caused the harm first, and then chasing the insurer separately.\n\n**Who does it affect?**\n\n- **Injured people or those owed compensation:** If someone who owes you money (for example, because they injured you or damaged your property) has an insurance policy that covers the claim, you can go straight to their insurer to recover what you're owed.\n- **Insurers:** Insurance companies can be brought directly into legal proceedings by claimants, rather than sitting behind the scenes.\n- **Insured persons (people with insurance policies):** Their insurer can be sued directly in relation to claims against them.\n\n**Why does it matter?**\n\nBefore laws like this, if the person who harmed you went bankrupt or disappeared, your compensation claim could become worthless — even if they had insurance. This Act cuts through that problem by letting you deal directly with the insurer. It's particularly relevant in situations like:\n- A contractor who injures someone and then winds up their business\n- A person who causes damage but has no assets to pay a court judgment\n\n**Important limitation:** This Act only applies in **New South Wales**, and only where the person who harmed you has a relevant liability insurance policy (insurance that covers them for causing harm to others).\n\n**In plain terms:** This law is a practical tool that stops injured people from being left empty-handed just because the person who hurt them can't pay — as long as that person had insurance."}},"importantCases":[],"_links":{"self":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017","history":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017/history","analysis":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017/analysis","conflicts":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017/conflicts","importantCases":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017/important-cases","documents":"/api/acts/civil-liability-third-party-claims-against-insurers-act-2017/documents"}}