Overview

The Mesothelioma Bill establishes a Diffuse Mesothelioma Payment Scheme to compensate individuals diagnosed with mesothelioma and their dependants, provided certain eligibility criteria are met, and introduces a levy on insurers to fund the scheme. The bill also creates a Technical Committee to resolve certain insurance disputes.

Description

Diffuse Mesothelioma Payment Scheme

The scheme provides payments to eligible individuals diagnosed with diffuse mesothelioma after July 25th, 2012, and their dependants. Eligibility requires negligent asbestos exposure by a relevant employer, inability to sue the employer or their insurer (due to insolvency or inability to locate), and no prior damages or similar payments received. Payment amounts are determined by the scheme, potentially factoring in age, and are divided among dependants. The scheme includes provisions for reviews and appeals to the First-tier Tribunal. The Secretary of State can administer the scheme directly or via a designated body.

Levy on Insurers

Active insurers will be levied to cover scheme costs, including payments, administration, and establishment costs. The Secretary of State will determine the levy amount, considering estimated and actual costs, and aiming for equal levies across the first four periods. Insurers' contributions will be based on their market share.

Insurance Disputes

A Technical Committee will resolve disputes between potential claimants and insurers about whether employers maintained liability insurance at a given time. Decisions are binding unless referred to arbitration.

Government Spending

The bill does not specify the exact amount of government spending, but the scheme will be funded primarily by a levy on insurers. The government may initially cover some costs, which will later be recovered through the levy.

Groups Affected

• Individuals with diffuse mesothelioma diagnosed after July 25th, 2012: May receive financial compensation through the scheme.
• Dependants of individuals who died with diffuse mesothelioma: May receive financial compensation if the deceased met eligibility criteria.
• Insurers: Will be required to pay a levy to fund the scheme.
• Employers: Their liability for asbestos-related illness will be affected by the scheme’s existence and associated legal processes.
• Government: Will oversee the scheme and potentially provide initial funding.

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