The Association of British Insurers (ABI) has come under criticism in the past week for its failure to assist asbestos victims who are unable to pursue a claim for compensation for their disease. (1) The ABI’s success rate for tracing employer’s liability insurers was published on 27 November 2009, and showed a success rate of only 45%.
What is mesothelioma?
Mesothelioma is a fatal cancer caused by exposure to asbestos. In the vast majority of cases it arises from exposure in the workplace. It can take any time between 10 and 30 years (sometimes more) for the symptoms to manifest. During this time lapse between exposure and the symptoms occurring (“the latency period”), the victim’s employer often goes out of business. In this situation a victim must bring a claim against their former employers’ insurer; which is where the ABI’s Tracing Service comes in. When a former employer is dissolved, it is essential that their insurer is identified in order for the victim to proceed with their claim for compensation.
The ABI was formed in 1985, and its role is to represent the collective interests of the UK insurance industry. The ABI provides a Employer’s Liability Insurance Tracing Service.
Mepham Electrical Company Ltd
At Leigh Day & Co we have unfortunately seen the effects of the ABI’s failure first hand. We were approached by Mr Phillips in September 2009, when he was diagnosed with mesothelioma. He had worked for a company called Mepham Electrical Company Ltd for approximately 16 years between 1956 to 1971, where he re-fitted electrics in pubs. He worked alongside laggers in boiler rooms, who would be coating pipes and boilers with asbestos lagging. Unfortunately, despite our extensive investigations we have been unable to identify the employers liability insurers of Mepham Electrical Company Ltd. If you have any information that may assist us in this investigation, please contact
Daniel Easton or
Claire Spearpoint.
With all the information available to the ABI, the success rate of 45% is simply not acceptable. There have been widespread criticisms of an insurance industry “regulating itself”, and scepticism at the ABI’s failure to trace policies which saves the insurance industry an estimated £60 million a year .
The Government has admitted that the scheme has been a failure, and that it is considering a more formal tracing service. Another alternative to the current system being put forward is the establishment of a ‘fund of last resort’ whereby all insurers pay into a fund, and in the eventuality that an employer’s liability insurer cannot be traced, the claimant can be compensated from this fund. This system, whilst not rectifying the failure to identify the insurance policies, could provide guarantees for compensation to those who are currently unable to pursue a claim, and in the case of mesothelioma victims, provide some support for themselves and their families.
(1) Independent on Sunday, 29.11.09,
Lost or missing insurance policies leave asbestos victims without compensation
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