Asbestos victims’ insurance victory

Nov 22 2008 by Chris Robinson, The Journal

THOUSANDS of North East families affected by deadly asbestos exposure could receive large compensation pay-outs following a landmark ruling.

Insurers have been told they must now stump up for decade-old cases where people contracted lung cancer mesothelioma, which damages the lining of the lungs. Previously they had claimed they should not be held liable for asbestos exposure which happened so long ago.

But at the High Court ruling yesterday three families were handed the right to six-figure compensation.

Last night, Wallsend widow Chris Knighton, 62, who founded charity the Mick Knighton Mesothelioma Research Fund (MKMRF), after her husband died in 2001, welcomed the news.

She said: “I’m absolutely delighted that this decision has come through on the side of the sufferers.

“My only concern is because there has now been an appeal put in, people are still left in limbo. Sadly these sufferers don’t have the pleasure of time.

“Quite often when people are diagnosed the survival rates are only a matter of months.”

In the region, South Tyneside, North Tyneside, Sunderland and Newcastle feature in the 20 worst hit places in the UK.

From 1981 to 2005, 341 people died from the disease in North Tyneside, 254 in South Tyneside, 321 in Newcastle and 170 in Gateshead.

Nationally, since 2003 around 9,000 people have died from the disease which can be triggered by exposure to a single asbestos fibre and can take up to 40 years to develop.

The ruling, by Mr Justice Burton, was that liability to pay compensation arises at the time of exposure to asbestos and not, as insurers claimed, at the point where the tumour actually develops.

Had the insurers won that argument, mesothelioma victims would have gone uncompensated if their former employers had gone out of business, or were no longer insured, by the time their tumours developed.

The judge’s decision, following a nine-week court battle, means that compensation must be paid under insurance policies in force at the time of the original asbestos exposure.

Even if the insurance companies concerned are insolvent, or no longer exist, mesothelioma victims can still seek payouts through the Financial Services Compensation Scheme or under the terms of the Pneumoconiosis (Workers Compensation) Act 1979.

Exposure was particularly common in the shipbuilding and construction industries and the judge said it was a “very frequent situation” that companies in those sectors, some of them once household names, have since ceased to trade.

Although insurers were granted permission to challenge the ruling at the Court of Appeal, Mr Justice Burton said that his interpretation of insurance policy wording was “consistent with public policy” and, if there is an appeal, he is “confident” his decision will be upheld as the right one by the Appeal Court.

Derek Simpson, Unite joint general secretary, said: “This is a hugely important victory for the victims of the deadly dust and for their families. Having to suffer or watch your relatives suffer from a slow and painful death is horrific.

“Thousands of men and women across the UK have been negligently exposed to asbestos by their employers but insurers have tried, and failed, to use legal technicalities to escape their responsibility to pay compensation.”

Read more stories on this issue

:: Asbestos victim in campaign for justice - Jan 26 2008 by Audrey Barton, The Journal

:: Shock at delay for asbestos treatment - Sep 15 2007 by Audrey Forbes, The Journal