Section 12

Where a person who is insured under a policy issued for the purposes of this Act has become bankrupt, or where in the case of such insured person being a company, a winding-up order has been made or a resolution for a voluntary winding-up has been passed with respect to the company, no agreement made between the insurer and the insured after liability has been incurred to a third party and after the commencement of the bankruptcy or winding-up, as the case may be, nor any waiver assignment or other disposition made by or payment made to the insured after the commencement, shall be effective to defeat or affect the rights transferred to the third party under this Act, but those rights shall be the same as if no such agreement, waiver, assignment, disposition or payment had been made.

Motor Vehicles Insurance

(Third Party Risks)

16

Bankruptcy, insured persons not to affect certain claims by third parties.