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5 THIRD PARTY RIGHTS

Law of Insurance Contracts

Chapter 5 THIRD PARTY RIGHTS 5-1 INTRODUCTION This chapter is concerned with the right, if any, of a third party, i.e. a person who is not a party to the contract between insurer and insured, to benefit from the contract. In England the position of the third party at common law is poor, being caught by the rule of privity of contract 1 : no one may enforce all or part of a contract to which he is not a party. 2 The law was modified by the Contracts (Rights of Third Parties) Act 1999. 3

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