Victims of the fatal asbestos-induced cancer mesothelioma who cannot trace a liable employer or an employers’ liability insurer will be able to apply for compensation. It was originally envisaged that the maximum pay-out would be £115,000 but the government has now said that it has found savings in the administration costs of the scheme, and so can add an extra £8,000 to that.
Around 3,500 victims of the aggressive cancer, or their families, can apply for compensation from next month from a £380m pot. Payments will begin in July.
Mesothelioma, which often takes 40 to 50 years to present symptoms after exposure to asbestos, has resulted in more than 300 people every year struggling to find a relevant party to sue for damages, because companies become insolvent or insurance records go missing.
Work and pensions minister Mike Penning said: “This will end years of injustice for mesothelioma victims and their families – who have had to endure this terrible disease with little hope of any compensation from the insurance industry.
“We have made it an absolute priority to bring in the scheme as soon as legislation will allow, so I am pleased to announce that victims will be able to apply for payments from next month.”
The Mesothelioma Act was passed in January and allowed for the creation of a new package of support – funded by insurance firms – to pay in excess of 800 eligible people in 2014 and 300 every year after that, until 2024. Victims, or their dependents (where the sufferer has died), will receive substantially higher payments than the statutory schemes currently operated by government. They will also get an additional £7,000 towards legal expenses.
The claims handling company Gallagher Bassett has been appointed to run the compensation scheme.
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