Christmas comes early for fat cat asbestos insurers

Simon Danczuk MP

Simon Danczuk MP has reacted angrily to a Ministry of Justice (MOJ) announcement affecting some victims of asbestos cancer.

Rochdale was home to the world's first and largest asbestos factory, Turner Brothers Asbestos, and Mr Danczuk branded the government decision to reduce insurers' contributions to a fund that will help asbestos cancer sufferers "a Christmas gift for fat cat asbestos insurers".

The Justice Minister Lord Faulks issued a statement last week (8 December 2014) about the Government’s treatment of asbestos victims suffering from mesothelioma, a particularly aggressive form of terminal asbestos cancer. This was in response to a successful Judicial Review, by asbestos campaigners, of previous MOJ policy decisions earlier this year.

Commenting on the statement, Mr Danczuk said: "Time and time again it's the finance industry that seems to benefit from these deals and the ordinary man on the street that suffers. This is wrong and it has to stop."

The UK Asbestos Victims Support Groups Forum has also branded Lord Faulks' statement “a missed opportunity” after the Justice Minister failed to increase payments to victims of asbestos disease.

A scheme has been set up recently to help mesothelioma sufferers who can prove they were negligently exposed to asbestos at work but who cannot trace a relevant employer or insurer. It is funded by a levy on insurance companies who provide employers liability insurance. The levy was supposed to be set at 3% of gross working premiums, a figure agreed by the insurers, Government and MPs.

Instead the Government has used the lower than expected take up of the scheme to set the levy at 2.2% for the coming year, saving the insurers £11.6 million.

Doug Jewell, Chairman of the UK Asbestos Victim's Support Groups Forum, described the move as very disappointing. He commented: “The Government statement talks about support for industrial disease victims. However, the insurance industry will receive an early Christmas present from the Government of £11.6 million whilst once again asbestos victims get short changed”.

Asbestos victims groups have supported the scheme since it was first set up, despite its flaws. They point out that mesothelioma sufferers receive less from the scheme than they would from the Courts and most asbestos related conditions are not covered. Both of these problems could have been addressed if the extra £11.6 million had been collected.

Mr Danczuk paid tribute to the ongoing work of asbestos campaigners in Rochdale and nationally: "The injustices and cruelty of asbestos are important issues that have been tirelessly raised by campaigners such as Jason Addy and the Greater Manchester Asbestos Victim Support Group. Their work with the UK Forum at the All-Party Asbestos Subcommittee continues to be invaluable."