The new Financial Services Compensation Scheme (FSCS) may "avoid" making payments to sufferers of asbestos-related illnesses, the All Party Parliamentary Group on occupational health and safety has claimed.

The group has written to Financial Services Authority (FSA) chairman Howard Davies over its concerns about the FSCS, particularly its claims payment levels.

The letter also said: "We are concerned there might be room for the FSCS to avoid making payments if the claimant cannot provide evidence regarding the wording of the policy or the existence of the policy."

However, a FSCS spokeswoman said the scheme was bound by the rules set out under the Policyholders Protection Act 1975.