Asbestos victims are still dying without legal redress, two years after the Government finished consulting on plans to set up an insurance fund to help them.
Trade Unions have welcomed the landmark ruling by the Supreme Court which will affect many of the 2,500 people who are diagnosed with mesothelioma each year.
Mesothelioma is a terminal form of cancer caused by exposure to asbestos. Mesothelioma has an unusually long gestation period, which can be in excess of 40 years between exposure to asbestos and manifestation of the disease.
Insurance companies had tried to argue that employer's liability policies only covered mesothelioma which manifested as a disease at some point during the relevant policy period. The Supreme Court has rejected these arguments, which would have denied compensation to victims of the terminal disease, and ruled that the insurers of an employer at the time of the exposure to asbestos should pay compensation.
In his judgment Lord Clarke concluded that: “The whole purpose of these policies was to insure employers against liability to their employees. That purpose would be frustrated if the insurers’ submissions on this point were accepted.”
Lord Phillips added that diseases are contracted when the process that leads to them is initiated as a result of wrongful exposure to the noxious substance that causes the disease.
The judgment went on to emphasise that these principles apply not only to mesothelioma but also to other industrial diseases.
