Law Weblog

Workers win against insurers over mesothelioma payout

Friday 21 November 2008 at 10:35 pm | In News | Post Comment

The insurance in force when a worker contracted a lung disease will now have to pay out following a High Court decision today; not the one in force when he becomes ill.

This decision affected thousands of workers who became ill with the lung disease, mesothelioma which is caused by contact with asbestos.

Insurers tried to avoid paying compensation under the policies they sold to employers because the disease can take 25-40 years to take hold.

The insurers argued that the worker may have worked for several employers and so it was common sense that the policy in force when the victim became ill was the one that should pay.  Many of the original employers no longer exist.

The test case followed from the death of Charles O’Farrell. His family sued Excess Insurance, which covered his former employer, Humphreys & Glasgow. Other test cases, all heard together, were Fern v BAI; Bates v BAI; Fleming v Independent; Akzo Nobel & Amec Plc v Excess Ins. Co; and MMI v Zurich & Adur DC & ors.

The full judgment is available on BAILII
See also BBC News 21.11.08