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Friday, August 01, 2014

A Shoddy Secret Deal

More people are killed by asbestos than road traffic accidents, with around 2,500 people dying every year from exposures which happened up to half a century ago.

A Government compensation scheme supposed to help the families of people killed by exposure to asbestos was too heavily influenced by the insurance lobby, the Justice Select Committee, a parliamentary inquiry, has found. It investigated how the Government had decided on a new compensation programme paid for by insurance companies and found the process gave insurers an unfair advantage. They discovered the government entered into a secret deal with insurers before deciding on the amount of compensation payable, the details of which they refuse to publish.

The committee said a heads of agreement was made between the Government and the Association of British Insurers, adding that the coalition was not open or transparent about the existence of the document. "The provisions of this document, which remained undisclosed to other interested parties, have shaped the Government's approach to this issue, and we are concerned that the Government appears to have had no intention of supplying us with this document as part of our inquiry.”

Because of the time-lag between exposure and a cancer developing many people cannot trace the insurer of the employer which allowed them to inhale the lethal fibres with no protection. The insurance industry has saved billions of pounds by not paying out on old policies because their details cannot be found. The announcement of a compensation scheme was a breakthrough for the families of asbestos victims, but they were disappointed when it emerged that they face being charged up to 25 per cent of their awarded damages to pay for legal costs.

TUC general secretary Frances O'Grady said: "The Justice Committee is right to criticise the shoddy deal done between the insurance industry and the Government. Victims of this terrible and fatal illness deserve proper and swift recompense.”

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