Landmark Court Case Could Save Insurance Industry £500m in Asbestos Compensation

A crucial hearing in the Court of Appeal is underway, with potentially far-reaching implications for tens of thousands of workers affected by asbestos. The insurance industry is seeking to halt payments to sufferers of pleural plaques, a condition linked to asbestos exposure. If successful, the challenge could save insurers up to £500m in compensation payments. Thompsons Solicitors, a leading firm in asbestos disease cases, is representing several claimants in the test cases being used to fight the industry's bid.

Key Takeaways:

• The Court of Appeal case could overturn a High Court decision that allowed compensation payments to continue for pleural plaques sufferers.
• Thompsons Solicitors is representing two of the six test cases being used against Norwich Union's legal challenge.
• The insurance industry estimates asbestos-related claims will cost UK insurers up to £10bn over the next 40 years, with pleural plaques claims accounting for over £500m.
• Compensation of up to £20,000 was awarded to pleural plaques sufferers before the High Court ruling reduced it by approximately 50%.
• Thompsons Solicitors are contesting the reduction in compensation levels.
• Pleural plaques claims account for about 75% of all asbestos claims, with approximately £25m in compensation paid out by insurers each year.

Statistics:

• £500m: Potential savings for the insurance industry if the Court of Appeal rules in its favor.
• £10bn: Estimated cost of asbestos-related claims to UK insurers over the next 40 years.
• £25m: Compensation paid out by insurers for pleural plaques claims each year.
• 14,000: Estimated number of pleural plaques claims each year.
• 75%: Proportion of asbestos claims that are for pleural plaques.

Sources:

• "UK insurer challenges asbestos disease payout warrant" (BBC News)
• "Asbestos-related disease claims add up to £10bn for insurers" (The Times)
• "Pleural plaques claims: the fight for justice" (Yorkshire Post)