April 1st, 2005

Two UK insurance giants are set to appeal against a UK High Court ruling with relation to compensation payouts to those suffering from pleural plaques through asbestos exposure. The landmark decision regarding this issue was reached last week. Pleural plaques entail scarring of the lungs, which is caused by asbestos exposure but is benign.

The English High Court judge that heard the case did cut the compensation levels for those suffering with this problem, but did not stop payouts altogether, which is what the insurers had been battling for. The decision was made during a test case where ten men, all suffering from this condition, claimed that former employers were to blame for their condition because they had been negligent with regards to warnings and protection.

Both Zurich UK General Insurance and Norwich Union insurance groups plan to fight back, even though they had lost the initial battle. The insurers had been fighting against the judge’s decision because they stated that the condition known as pleural plaques was a benign one and therefore not serious enough the warrant a compensation payout. In a twist to the case, one of the ten claimants involved plans to also appeal – for higher levels of compensation. The claimant was awarded seven thousand pounds, equivalent to around thirteen thousand dollars.

With regards to the decision of the test case claimant, Mr Ellis Hindson, to appeal, a Zurich Insurance spokesperson stated: "in the light of Mr. Hindson's decision and as a result of a close and careful review of the judgement, we have now reached a decision to appeal."