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Legal Update

Third Party Rights Against Insurers and the Bridgecorp Decision – Do Hong Kong Insurers Need to be Concerned?

7 March 2014
Mayer Brown JSM Legal Update
The Third Party (Rights Against Insurers) Ordinance Cap 273 (TPRAI) in Hong Kong allows third parties to claim against the wrongdoer's liability insurer in the event of insolvency. The Supreme Court of New Zealand (the country's highest court) found in BFSL 2007 Ltd (in liquidation) v. Steigrad [2013] NZSC 156 (known as the Bridgecorp case) that under the equivalent statutory provision in New Zealand, payment of defence costs do not reduce the limit of indemnity. This means that even if the limit of indemnity is inclusive of defence costs, insurers may need to pay third parties up to the limit and defence costs in addition to the limit. What implications does this have for TPRAI in Hong Kong?


  • Tow Lu Lim
    T +852 2843 4490
  • Jenny W. Y. Yu
    T +852 2843 4445

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