§ Read 3a (according to Order).
§ Clause 1:
§ Rights of third parties against insurers on bankruptcy &c. of the insured.
§ (4) Upon any such transfer the insurer shall be subject to the same liabilities as if he were the insured so, however, that the insurer shall not be under any greater liability to the third party than he would have been under to the insured.
§ (5) If the liability of the insurer to the insured is less than the liability of the insured to the third party, nothing in this Act shall affect the rights of the third party in respect of the balance.
EARL RUSSELL moved, to leave out subsections (4) and (5), and to insert:—
(4) Upon a transfer under subsection (1) or subsection (2) of this section, the insurer shall, subject to the provisions of Section three of this Act, be under the same liability to the third party as he would have been under to the insured, but—
§ The noble Earl said: My Lords, although the Amendment on the Paper is a long one it is really only a drafting Amendment and it is one to which I called your Lordships' attention at the Committee stage. It is intended to make the meaning of the clause clearer and does not alter the meaning. I beg to move.
Clause 1, page 2, lines 24 to 32, leave out subsections (4) and (5) and insert the said new subsection.—(Earl Russell.)
§ On Question, Amendment agreed to.
§ Bill passed, and returned to the Commons.