Government launches proposal for new compensation scheme
The government has launched a proposal for a fast-track, fixed-cost online compensation process for mesothelioma claims.
The lethal lung disease, which is caused by exposure to asbestos, often develops decades after exposure and usually kills within nine months of diagnosis. It causes approximately 2,200 deaths in the UK each year.
The new system would include a dedicated pre-action protocol for mesothelioma. The insurance industry would also set up a secure electronic information gateway, which would resemble the RTA Portal for uncontested road traffic claims. The gateway would be used where the victim knows where they were working when they were exposed to asbestos. Claimants’ legal fees would be limited by a fixed recoverable costs regime.
A Ministry of justice consultation on the proposals, Reforming mesothelioma claims, closes on 2 October. The Mesothelioma Bill, which is currently progressing through Parliament, aims to create a compulsory payment scheme for victims who cannot trace the relevant employer or liable insurer.
However, personal injury specialist at Pannone, Rachel Seaward said: “The current proposals appear to be tipped in favour of insurers.
“We have serious concerns that with pressure to disclose witness evidence prematurely there may be an adverse impact on the level of damages particularly as these are complex high value claims. These claims often have a complicated corporate history that requires in-depth investigation and research and the introduction of fixed costs is likely to prevent lawyers undertaking this work economically.
“Ultimately we have real concerns that these changes will result in more victims dying before receiving the compensation that is due to them.”
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