Daily Insurance Industry News
 
 
Daily Insurance Industry News
Monday 19th of February 2018
October 18, 2007

Plueral Plaques Set To Save Insurers £1.5 billion

by Stewart Douglas

Story link: Plueral Plaques Set To Save Insurers £1.5 billion

The recent House of Lords ruling that asbestos-linked illness plueral plaques was not in fact a disease could allow a saving of just under £1.5 billion in liability to abestos compensation cases, according to a report released by business analysts Deloitte which examined the nature of future liability to asbestos related claims.

The House of Lords, when facing the question of the true nature of plueral plaques ruled that it was not classified as a disease, consequently negativing sufferers’ claims for compensation for asbestos related diseases, which ultimately fell to be borne by the insurance industry to that extent forecast today.

The landmark judgement reflects similar sentiments from a Court of Appeal ruling at the beginning of last year, which held that the condition, undoubtedly linked with asbestos exposure, was not in fact a disease and should be exempt from claiming compensation as a result, firmly cementing the law in this area.

The figures in the report were devised on estimates offered by an acturial working group specifically examining asbestos related insurance claims, with the bottom line predicting a cost of anywhere between £4 and £10 billion over the course of the future in total.

Of this figure, around £1.4 billion was attributable to sufferers of pleural plaques, hence giving rise to the massive potential for savings within the industry based on the technicality clarified by the Lords today which would eradicate the right for sufferers to claim for compensation.

A spokesperson from Deloitte has said today in delivering the report that although it may seem on the face of it a good day for the insurance industry, the effects of liability to asbestos related illnesses in future would continue to be hard felt on margins, particularly as several other conditions emerge as significant problem areas.

 

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