The ABI has today released guidelines for insurers on the payment of mesothelioma claims which fall within the Fairchild judgement.
The judgement, made by the House of Lords in May 2002, enables employees with mesothelioma, a form of terminal cancer caused by asbestos exposure, to make an employers' liability claim even if they cannot trace the exposure to a particular employer.
The guidelines state that the compensation costs will be split between culpable employers, and therefore, insurers, in direct proportion to the period the claimant worked for each employer.
In the case that one employer is insolvent, the remaining employers would split the additional cost evenly between them.
In the event that an insurer involved is insolvent, the Financial Services Compensation Scheme will assume responsibility for the payment of its part of the claim.
