Norwich Union hails U.K. asbestos decision

Norwich Union, the U.K.’s largest insurer and part of Aviva P.L.C., has welcomed a U.K. Court of Appeal judgment that no longer allows compensation for pleural plaque claims arising from asbestos exposure in the workplace.
It is estimated the decision may prevent more than 100,000 court cases involving pleural plaques or pleural thickenings being brought in future, which could have potentially cost insurers up to 1.4 billion (US$2.5 billion).
The appellate court decision reversed a previous court ruling that ordered the payment of compensation for the anxiety caused as a result of pleural plaques. The appellate court also took the unusual step of granting a leave to appeal the decision without such a request from any of the parties involved.
The Appeal Court decision said “pleural plaques are symptomless, have no adverse effect on any bodily function and being internal, have no effect on appearance. In short, no one is any the worse physically for having pleural plaques.”
Commenting on the decision, Dominic Clayden, Norwich Union’s technical claims director, said: “We welcome the judgment and believe it to be a pragmatic result on the issue of compensation being awarded for an asymptomatic condition.
“The issue of compensating claimants with serious asbestos-related conditions or who suffer from impairment as a result of exposure to asbestos has never been in question and they will continue to receive compensation.”
According to Norwich, which was involved in the appeal, the judgment handed down in the Court of Appeal also noted:
Bringing legal proceedings is stressful. It will result in the claimant’s attention being drawn to all the possible consequences of exposure to asbestos, however remote, and may well create or increase the anxiety for which compensation will be claimed.
There is a danger that those, such as claims managers, who make a business out of litigation, will encourage workers who have been exposed to asbestos to have CT scans in order to see whether they have pleural plaques for the sole purpose of bringing claims for compensation. Such a practice will tend to create stress and anxiety where none exists.
Some claimants will be tempted to claim a final reward, thereby, in effect, gambling, to the possible prejudice of themselves and their families, that they will not contract an asbestos-related disease.
The costs of litigation in cases tend to be disproportionate to the damages recoverable.