Bankruptcy Act 1966
View history note
Hide history noteWhere: (a) a bankrupt is or was insured under a contract of insurance against liabilities to third parties; and (b) a liability against which he or she is or was so insured has been incurred (whether before or after he or she became a bankrupt);
the right of the bankrupt to indemnity under the policy vests in the trustee and any amount received by the trustee from the insurer under the policy in respect of the liability shall, if the liability has not already been satisfied, be paid in full forthwith to the third party to whom it has been incurred.
[ CCH Note: Modification Declaration FRLI No F2021L00261 (FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Subsection 117(1) of the Act is modified by substituting " a deceased debtor " for " a bankrupt " in para (a), substituting " which the deceased debtor " for " which he or she " and " at any time " for " (whether before or after he or she became a bankrupt) " in para (b), substituting " the deceased debtor " for " the bankrupt " and substituting " in the trustee of the deceased debtor ' s estate being administered under Part XI " for " in the trustee " .]
117(2)
Subsection (1) does not limit the rights of the third party in respect of any balance due to him or her after the payment referred to in that subsection has been made.
117(3)
This section applies notwithstanding any agreement to the contrary, whether entered into before or after the commencement of this Act.
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