September 15th, 2005

The Congressional Budget Office has recently announced that the proposed asbestos fund is likely to have to pay out $70 billion in compensation over the next decade alone. Most of the funding for the payouts will be provided by the industry sector, with insurers and bankruptcy trusts having to pay around $63 billion over the next 10 years in order to fund the estimated payouts to claimants with asbestos injuries.

The federal deficit is also expected to suffer over the 10-year period, with nearly $7 billion expected to be added to the deficit over the period. The asbestos legislation was proposed to take over from the current court based system with officials hoping that the trust fund would help to reduce bankruptcies of companies and also to try and cut down on frivolous asbestos related claims.

The asbestos trust fund legislation has been stirring hot controversy for some time, with many lawyers, support groups, and victims strongly opposed to the fund because it seemed to be supporting only the businesses responsible for causing asbestos related injury and death. On the other hand, the companies in question along with insurers have been keen to press ahead with the fun because a one off contribution would mean immunity to further litigation.