Law Lords rule to end pleural plaques compensation

Published on Tue 30 Oct 2007

The Law Lords have ruled that pleural plaques, scarring of the lungs caused by exposure to asbestos, are not a compensatable condition. The decision overrules that made by the Court of Appeal in 2006.

The decision was widely criticised by unions but welcomed by insurers who estimate that £1.4bn was paid out in compensation between the 1970 and 2006.

The test-case was brought by a number of insurance companies who argued that pleural plaques have no symptoms and has no effect on health. The counter argument claimed that the discovery of pleural plaques causes great distress and anxiety to those affected, who fear they will then fall victim to other asbestos diseases.

A statement from Zurich, one of the insurers who brought the case, said:

"The insurance industry has a responsibility to compensate people who've suffered an injury and not to pay out policyholders' money for a condition that causes no symptoms,"

According to Scotland's First Minister, Alex Salmond, the ruling does not currently apply in Scotland.