Section 62: Rights of third parties

62. Rights of third parties (1) Where, under a policy issued under this Part— (a) a person is insured against any liability to a third party and— (i) becomes bankrupt; or (ii) makes a composition or arrangement with his creditors; [Issue 3] R27 – 54 Revised Laws of Mauritius (b) a company is insured against any liability to a third party and— (i) a winding up order is made; (ii) a resolution for a voluntary winding up is passed with respect to the company; (iii) a receiver or manager of the company’s business or undertaking is appointed; or (iv) possession is taken by or on behalf of the holders of any debentures secured by a floating charge over any property comprised in or subject to the charge, the rights of that insured person or company against the insurer under the policy in respect of the liability shall, if any liability is incurred before or after the events specified in paragraphs (a) and (b), be transferred to and vest in the third party to whom the liability was incurred. (2) Any condition in a policy issued under this Part purporting, directly or indirectly— (a) to avoid the policy; or (b) to alter the rights of the party under the policy for the occurrence to the insured person or company of any of the events specified in subsection (1), shall be of no effect. (3) (a) Upon a transfer under subsection (1), the insurer shall, subject to section 64, be under the same liability to the third party as he would have been under to the insured person or company. (b) Where the liability of the insurer to the insured person or company— (i) exceeds the liability of the insured person or company to the third party, the right of the insured person or company against the insurer shall not be affected in respect of the excess; (ii) does not exceed the liability of the insured person or company to the third party, the rights of the third party against the insured person or company shall not be affected in respect of the balance. (4) (a) In sections 62, 63 and 64, “liability to the third party”, in relation to a person insured under a policy of insurance, does not include any liability of that person in the capacity of insurer under some other policy of insurance. (b) Sections 62, 63 and 64 shall not apply— (i) where a company is wound up voluntarily merely for the purpose of reconstruction or of amalgamation with another company; or (ii) in any case where the Workmen’s Compensation Act or the National Pensions Act would apply. R27 – 55 [Issue 1] Road Traffic Act