AVSGF-UK: Mesothelioma

Mesothelioma

Changes planned to the Workers' Compensation Scheme for Mesothelioma

The Pneumoconiosis etc. (Workers Compensation) Act 1979 (1979 Act) was set up to provide lump sum payments to people:

who suffer specific lung diseases, including pleural thickening, asbestosis, mesothelioma and asbestos-related lung cancer;
who are assessed for Industrial Injuries Disablement Benefit as at least 1% disabled;
where the companies who exposed them to asbestos are no longer trading, or it is unlikely that they will receive compensation from those companies or their insurers.

Exposure to asbestos is the only known cause of mesothelioma. However, only those mesothelioma sufferers who are eligible for Industrial Injuries Disablement Benefit, i.e those who have been exposed to asbestos as `employed earners´, i.e. not self-employed, are entitled to claim a payment under the 1979 Act. Of those entitled to claim, only those who fulfill the above criteria will receive a payment.

Consequently, mesothelioma sufferers who fall into the following categories do not receive a lump sum payment under the 1979 Act:

employed earners who do not meet the 1979 Act criteria;
self employed workers;
environmental exposure;
exposure from asbestos brought home on work clothing.

Currently, where a 1979 Act payment is made, and where compensation is subsequently received from a negligent company or insurer, the 1979 Act payment is credited to the employer or insurer to avoid `double´ compensation´. The mesothelioma claimant receives their full compensation, but the employer or their insurer pockets the 1979 Act payment and, in effect, receives a subsidy from the Government.

A New Scheme

A new scheme has been proposed to ensure that ALL mesothelioma sufferers receive a government lump sum compensation payment.

It is proposed that 1979 Act payments are no longer credited to the employer/insurer. Instead they will be recovered by the Government and will be used to pay those categories of mesothelioma sufferers (see above) who are not currently eligible for a lump sum payment.

The new scheme will operate alongside the 1979 Act scheme. Payments under the new scheme will be commensurate with the amount recovered and for some time will be less than 1979 Act payments.

The new scheme is to be introduced through the Child Maintenance and Other Payments Bill (Bill No 118 of 2006-07) and will come into effect in 2008. Full details of the new scheme have yet to be announced.