Insurers Protest Inclusion of Pleural Plaques in Compensatable Conditions
ABI’s Director of General Insurance and Health, Nick Starling, has commented upon the move by four major insurers challenging the validity of the Damages (Asbestos-related conditions) (Scotland) Act, saying that the action was taken in all seriousness when the insurance industry felt that it was left with no other alternatives.
The Act has come under fire for various reasons, and insurers are particularly unhappy with the fact that it includes pleural plaques in the list of compensatable conditions, despite it neither having any symptoms nor resulting in any serious asbestos-related conditions. They also criticise the Act as being based on unsound principles and for failing to take into account the consequences it has for the Scottish insurance industry, its customers, and the economy as a whole.
Insurers fear that the Act will lead to an upswing in the number of claims made by persons who, though exposed to a risk through the negligence of their employer, do not suffer from any symptoms or physical harm. This will result in an increase in insurance costs for the industry, which will only worsen the economic scenario in Scotland.
Insurers also find legal basis for their opposition to the Act in the fact that it flies in the face of established legal principles. They say that negligence law in the UK is based on the maxim that compensation can only be obtained when actual physical hurt has resulted from a negligent exposure to a risk.
With Aviva, AXA Insurance, RSA and Zurich, which together hold more than half of the employers’ liability insurance market, taking this bold step, the insurance industry is hoping that it can avoid making payouts for what they believe are unjustified claims for compensation. They however insist that they are still committed to compensating those who have genuinely suffered due to their employer’s negligence.
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