Insurance Industry against Paying Compensation for Pleural Plaques
A group consisting of four major insurers in the employers’ liability insurance market, namely Aviva, AXA Insurance, RSA and Zurich, have challenged the Damages (Asbestos-related conditions) (Scotland) Act. The Act makes pleural plaques a compensatable condition by overturning the decision of the House of Lords in the 2007 case of Rothwell v Chemical and Insulating Co. Ltd.
The insurers are asking for judicial review of the Act on the following grounds:
(a) plaques do not cause any symptom or asbestos-related problems;
(b) the UK law says that compensation can be paid only when some physical harm has been caused due to being exposed to risk, which is not the case here;
(c) the legislature has not factored in the negative effect the Act is going to have on the financial condition of the insurers as well as taxpayers of Scotland; and
(d) the Act could encourage more and more people to claim compensation without suffering any symptoms, which will increase the costs for the insurance companies.
Explaining the stand of the insurers, Nick Starling, Director of General Insurance and Health of ABI stated that the insurers accept the responsibility to pay compensation to those who suffer health problems due to negligence. However, the industry is not up for paying compensation to those who suffer no loss of health.
According to him the legislation ignores medical proofs as well as existing law, and is badly framed which leaves them with no other option than to challenge it.
Contact the experts at Workplace Law Training to find out about their range of accredited iosh safety training courses which can assist companies in training staff to be aware of the proper health and safety procedures for all kinds of workplace situations.
