Overview

The Mesothelioma Bill [HL] establishes a Diffuse Mesothelioma Payment Scheme to compensate individuals diagnosed with mesothelioma and their dependants, under specific eligibility criteria, where the asbestos exposure is linked to negligent employers and legal action is impossible. The bill also creates a levy on insurers to fund the scheme and establishes a Technical Committee to resolve certain insurance disputes.

Description

The Diffuse Mesothelioma Payment Scheme

The scheme will provide payments to eligible individuals diagnosed with diffuse mesothelioma after July 25, 2012, and their dependants. Eligibility depends on factors such as negligent asbestos exposure by a relevant employer, inability to sue the employer or their insurer (due to insolvency, etc.), and not receiving prior compensation. Payment amounts will be determined by the scheme's regulations, possibly considering the age of the affected individual and number of dependants.

Levy on Insurers

Active insurers will be required to pay a levy to fund the scheme. The Secretary of State will determine the levy amount considering estimated and actual costs, potential recoveries from other benefits, and the need for consistent levy amounts across the first four periods. The levy will be based on insurers' relative market share during a defined reference period.

Insurance Disputes

A Technical Committee will be established to resolve disputes between potential claimants and insurers regarding whether employers maintained employers' liability insurance at the relevant time. Decisions are binding unless referred to arbitration.

Information Disclosure and Penalties

The bill includes provisions to prevent unauthorised disclosure of information related to the scheme. Penalties for breaching these provisions include imprisonment and/or fines.

Amendments to Existing Legislation

The bill amends several existing acts regarding social security benefit recovery and information sharing to ensure that the new scheme works correctly alongside existing legislation and prevents double payments.

Government Spending

The bill introduces a levy on insurers to fund the Diffuse Mesothelioma Payment Scheme. The exact cost to the government will depend on the amount of the levy collected and the amounts paid out to claimants.

Groups Affected

• Individuals diagnosed with diffuse mesothelioma after July 25, 2012: May receive financial compensation under the scheme.
• Dependants of those who died with diffuse mesothelioma: May receive financial compensation if specific criteria are met.
• Insurers: Required to pay a levy to fund the scheme.
• Employers: Indirectly affected as the scheme aims to address situations where employers are unable to provide compensation.
• Administrators of existing social security benefit schemes: Affected by amendments to legislation to avoid duplication of payments.

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