The Mesothelioma Act 2014 received royal assent on 30th January 2014. The Act provides for regulations to establish the Diffuse Mesothelioma Payment Scheme.
This Scheme will enable individuals suffering from mesothelioma to seek compensation when they are unable to trace their employer who exposed them to asbestos or their employer’s liability insurers. Mesothelioma sufferers can apply to the Scheme if they have been diagnosed with mesothelioma on or after 25th July 2012.
Draft Government regulations have been published which provide further details of the Scheme. The first payments are expected in July. Applications to the Scheme however may be made as early as April 2014. If successful the Applicants will receive 75% of the average Court award for mesothelioma claims. Benefits will be recovered from the Scheme payments. Payments made under the Scheme will be funded by a 3% levy on active employers’ liability insurers. .
Any legal costs are expected to be fixed at a maximum of £7,000 and initially were expected to be deducted from compensation. However, following an announcement from the DWP (Department for Work and Pensions) last week, each successful Applicant will now receive the £7,000 on top of their compensation, as a contribution to their legal fees. Eligible individuals can now expect to receive an increased average payment of £123,000, again less benefit recovery.
The DWP also announced that the contract for the Scheme’s administrator has been awarded to Gallagher Bassett International. The increase in compensation payments has been said to be made possible because of savings made on the administration costs of the Scheme.
There is no doubt that the increase is a positive step but there is still discontent amongst many personal injury lawyers who feel that mesothelioma sufferers should recover 100% compensation and should not be penalised for being unable to trace their former employer’s liability insurers.
In addition, victims of exposure to asbestos in the workplace who go on to develop other types of asbestos related disease, including asbestosis, pleural thickening and lung cancer are still excluded from the Scheme which should in fairness extend to them and not differentiate between the different medical conditions.
A copy of the Mesothelioma Act 2014 is available here.
