Pleural plaques Scottish judgement is disappointing, but not the end of the road says the ABI

Friday, 8 January 2010 12:00 AM

Today's judgment by the Court of Session in Edinburgh that maintains the recently passed Act to compensate people with pleural plaques ignores the medical evidence that the condition does not cause harm or lead to asbestos-related conditions such as mesothelioma, the ABI said today. The ruling follows a judicial review brought by several insurers against the Damages (Asbestos Related Conditions) (Scotland) Act 2009. These insurers are now seriously considering the grounds for an appeal.

However, the ABI reassured that the judgment, and any further appeal, in no way affects insurers continued commitment to pay compensation to people with asbestos-related diseases, such as mesothelioma, which impact on their health.

Reacting to the judgment, Nick Starling, the ABI's Director of General Insurance and Heath said:

"We are very disappointed with this judgment. Insurers brought the review on the grounds that The Damages Act is fundamentally flawed as it ignores overwhelming medical evidence that plaques are symptomless, and the well-established legal principle that compensation is payable only when there are physical symptoms.

"We are pleased that the judgment recognises the fundamental right of insurers to challenge legislation made by the Scottish Parliament, although we are disappointed that the judge did not feel able to overturn the law passed by the Scottish Parliament. Insurers will now be considering carefully this judgment, and are seriously looking at the grounds for an appeal against it. This is not the end of the road."

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Notes for Editors

1. Enquiries to:
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)

2. Pleural plaques are small fibrous discs on the surface of the lung. They indicate exposure to asbestos.

3. The insurers who brought the judicial review are: Aviva, AXA, RSA, and Zurich.

4. The Damages (Asbestos Related Conditions) (Scotland) was enacted in June 2009. It seeks to make pleural plaques a compensatable condition in Scotland. By doing so, it will reverse the decision of the House of Lords (Rothwell v Chemical & Insulating Co Ltd). The Law Lords unanimously agreed that, taking into account expert medical evidence, pleural plaques were not a compensatable condition, as they produced no symptoms, had no adverse health impacts, and did not in themselves (save in a very small minority of cases where they are extensive) lead to other physical conditions confirmed by medical diagnosis.

5. 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.

6. An ISDN line is available for broadcasts.

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

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