In 1930 Parliament passed the Third Parties (Rights Against Insurers) Act 1930 (“the 1930 Act”). The immediate cause of the Act was the desire to remedy the injustice of two Court of Appeal decisions which had held that, where a person (“the third party”) was injured by another (“the insured”) who was insured under a liability policy, and the insured subsequently became insolvent, the third party could not reap the full benefit of the insured’s policy but the proceeds had to be paid to the liquidator or trustee in bankruptcy, with the result that the insured could at best recover a dividend and might recover nothing at all. The Act itself is somewhat wider in scope, and may apply in particular to cases where a company is wound up otherwise than by reason of insolvency. The draftsman of the 1930 Act adopted the deceptively simple formula of transferring the insured’s rights against the insurer in such circumstances to the third party. All defences available to the insurer against the insured remain, subject to certain qualifications, available against the third party.