ABI backs government asbestos plans

The Association of British Insurers has backed Justice Secretary Jack Straw’s package of measures for people with asbestos-related diseases.

Under the plans, the government will only compensate (through an ex-gratia payment of £5000) people with pleural plaques in England and Wales who had lodged a legal case prior to a Law Lords decision in 2007 to bar compensation.

Nick Starling, the ABI's director of general insurance and health, said: "Insurers remain determined to ensure that all those entitled to compensation receive it. We commend the government's efforts to increase help to those suffering from mesothelioma.

"Last year alone insurers paid out over £100m to mesothelioma sufferers, but it is unacceptable that it takes up to two years for these claims to work through the compensation system. We are pleased that the government is setting up a working group to review the system, and hope that it will deliver real results.

"Insurers also support the government's aim to provide more research into asbestos-related diseases, and will be contributing £3m to help them to fund that research.

"And, as part of the government consultation on providing more help to those with asbestos-related diseases, we are driving forward work on an Employers' Liability Tracing Office."

Mr Starling added: "The government's decision not to reverse the House of Lords ruling is the right one. The House of Lords judgement reflects medical evidence that plaques are symptomless, have no impact on health, and do not develop into asbestos-related diseases, like mesothelioma.

"It also upholds the fundamental legal principle that compensation is payable when someone suffers symptoms following negligence, but not for exposure to a risk alone."

Earlier today construction union UCATT expressed disappointment at the government's decision.

The decision is in contrast to the situation in Scotland where the Scottish Parliament has legislated to overturn the Law Lords decision. Ministers in the Northern Ireland Assembly are also considering overturning the ban on compensation for plaques sufferers under their jurisdiction.