Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 23rd of May 2018
July 14, 2008

Pleural plaques proposals could cost insurers £29bn

by David Masters

Story link: Pleural plaques proposals could cost insurers £29bn

Government proposals to overturn a Law Lords decision that prevents people with pleural plaques from claiming compensation could cost insurers up to £28.6 billion.

Pleural plaques is a benign scarring of the lungs caused by asbestos. It has been linked to conditions such as asbestosis and mesothelioma.

Prior to the Law Lords ruling, pleural plaques sufferers were on average rewarded between £5,000 and £7,000 in compensation.

The most recent government proposals to overturn the Law Lords ruling would mean that sufferers could claim a fixed fee of £5,000 when diagnosed.

Specialist loss adjuster Garwyn estimates that this would cost insurance companies between £3.7 billion and £28.6 billion.

Neil Hackett, manager of the disease and illness claims unit at Garwyn, said that if the government does decide to compensate asbestos sufferers, it should pick up the costs.

However, a spokesperson for the Union of Construction, Allied Trades and Technicians (UCATT) said that the current government proposals don’t go nearly far enough.

 

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