ABI: Pleural plaques - insurers launch judicial review gainst Scottish Damages Act

ABI: Pleural plaques – insurers launch judicial review gainst Scottish Damages Act

ABI: Pleural plaques – insurers launch judicial review gainst Scottish Damages Act

A judicial review was today lodged by a group of insurers against The Damages (Asbestos-related conditions) (Scotland) Act. The Act makes pleural plaques a compensatable condition in Scotland, despite the fact that plaques are symptomless, do not impact on health or lead to asbestos-related diseases. It overturns the decision of the House of Lords in the case of Rothwell in 2007.

The insurers bringing the action – Aviva, AXA Insurance, RSA and Zurich – represent over half the employers’ liability insurance market.

Insurers oppose the Act as it:

– Ignores overwhelming medical evidence that plaques are symptomless and do not cause asbestos-related conditions, such as mesothelioma.
– Overturns a fundamental UK legal principle that compensation is payable only where physical harm has been suffered through negligent exposure to a risk.
– Fails to assess fully the financial impact on Scottish firms and taxpayers
– Could lead to a rise in claims from people exposed to a risk, but having no symptoms. This would mean higher insurance costs for all firms and damage the economy.

Nick Starling, ABI’s Director of General Insurance and Health, said:

“Insurers have not taken this action lightly. But as the Act is ill conceived, ignores the fundamental legal principle of negligence and clear medical evidence, they feel they have no choice.

“Insurers remain committed to paying compensation to those negligently exposed to conditions that impact on their health. But the industry is fundamentally opposed to any move that will extend compensation to those exposed to a risk but not suffering any symptoms, such as pleural plaques.”

– ENDS –

Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

At ABI member companies:

Aviva – Jenny Chapman / Adrian Tink, 01603 689 894 / 681 922
AXA Insurance – Phil Hickley, 020 7920 5135 / 07974 830 888
RSA – Jon Sellors, 020 7337 5405
Zurich – Maria Wyatt, 01489 864 817

2. In the case of Rothwell v Chemical & Insulating Co Ltd, the Law Lords ruled that, taking into account expert medical evidence, pleural plaques were not a compensatable condition as they did not in themselves (save in a very small minority of cases where they were extensive) lead to other physical conditions confirmed by medical diagnosis.

The judicial review will argue that the Act a) contravenes Article 6 of the European Convention on Human Rights (ECHR), which states that everyone is entitled to a fair trial to determine their civil rights; b) contravenes protection of insurers’ economic rights set out in the ECHR; and c) is inconsistent with common law grounds of rationality.

3. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

4. An ISDN line is available for broadcasts.

5. More news and information from the ABI is available on our web site, www.abi.org.uk.