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Employers Liability Insurance Bureau - No. 10 Petition

An Employers’ Liability Insurance Bureau is the only effective solution to the widespread problem of claimants being unable to recover compensation for industrial diseases where employers have long ceased trading and adequate records of insurance have not been kept.   

In 1998 the Government introduced regulations which required employers to retain employers’ liability insurance records for 40 years. A well-welcomed reform to asbestos groups and campaigners, as it set to address the problem of long-latent disease, such as mesothelioma and asbestosis, where symptoms did not present themselves for many years, and by which time the claimants were unable to trace employers’ insurers.

However, the Government decided to revoke this regulation, known as Reg 4(4) (Retention of policy certificates) Employers’ Liability (Compulsory Insurance) Regulations 1998 last year. Their reason for this? They argued that the cost of retaining insurance policies was a ‘burden on businesses and was not enforced effectively by the Health and Safety Executive. The result? Once again we are met with a situation where more workers will die from long-latent diseases, such as mesothelioma, without

compensation, simply for the want of keeping an insurance document.

When you think of the logistics of keeping an insurance document, how hard can it be? Companies have to file Annual Reports with Companies House every year; surely they could have filed the insurance policy with this? Indeed, the Government acknowledged that it was not the individual expense to a business that caused for the ‘u-turn’, but simply due to the number of businesses carrying it out.

Surely something needs to be done to rectify the situation? There is a simple answer, the establishment of an Employers’ Liability Insurance Bureau (ELIB)

The Government has already published a bill calling for its creation. The bill calls for a creation of an ELIB, similar to that of the Motor Insurance Bureau, to enable victims of uninsured companies or untraced insurance policies to be compensated.

When you compare the motor insurance industry and employers’ liability insurance, the similarities are striking. Both types of insurance are legally compulsory, failure to comply leads to a criminal offence, and both insurance industries have been collecting premiums from a captive market. If  you are knocked down by an uninsured driver, the MIB will step in as the ‘insurer of the last resort’. There are no similar provisions for a worker who is injured at work (or develops an industrial disease) and their employer is uninsured.

Although with some claims, for example mesothelioma, the employee could apply for an award under the Pneumoconiosis etc (Workers' Compensation) Act 1979, this sum is considerably less than they would secure in a civil claim.  Moreover, why should the taxpayer have meet this cost and ‘foot the bill’, when the insurance industry has collected the premiums, and has evaded paying out through poor bureaucracy?

The establishment of an ELIB, funded by insurance policies, would help to ensure that those injured or killed by negligent employers who fail to keep insurance documents or are uninsured have the same right to compensation as those who are injured or killed on the roads. Furthermore, it should be funded by the insurance industry in the same way as the MIB is. This would mean that there would be no cost to the Government, and would also help to reduce the number of claims under Government schemes such as the PWCA 1979 etc.

The Bill also recommends that a national database is set up, recording all employers liability insurance policies. The problem of untraceable policies is a big one, and despite the efforts of the ABI, the UK’s voluntary insurance tracing scheme, thousands of claimants are left uncompensated through untraced policies. A central database is critical to help avoid this problem, is something that needs to be addressed now.

The HSE estimates 7000 mesothelioma deaths in the future from current, not past exposure to asbestos in buildings. This means that it is not just old policies that need logging; crucially it is today’s policies. This is a real issue and something that cannot be ignored. If you would like further information on claiming compnesation for mesothelioma, asbestos lung cancer or indeed any other industrial related disease please contact us on 0870 471 9852.

The Bill correctly highlights that, “Driving without insurance and employing people without insurance are both illegal. If an effective system can be set up, funded and administered for 26 million vehicles on British roads, there is no reason why something similar could not be established for the employers’ liability compulsory insurance policies of the 1.2 million UK businesses with employees. This would provide a vital safety net for people who need it who are most vulnerable ”

By Victoria Natalya Jackson

Oliver and Co Solicitors supports the establishment of an ELIB and would like to invite you sign our petition for Number 10 Downing Street;

Oliver and Co Solicitors are a specialist team of solicitors dealing with industrial disease cases, in particular asbestos related diseases and industrial deafness.  We act for clients all over the UK and overseas.

We have recovered millions of pounds for clients suffering from asbestos related diseases.  Two of the claims we have settled recently include an £850,000.00 settlement for a living mesothelioma sufferer against the Ministry of Defence and a £325,000.00 compensation payment for a widow who sadly lost her husband to the same disease.

Anyone requiring advice on the potential to pursue an industrial deafness or asbestos related disease claim should not hesitate to contact us for free legal advice without obligation.

Employers’ Liability Insurance the need for change

 

Useful Links

For more information and advice click on one of links below:

British Lung Foundation	The British Lung Foundation is the only UK charity working for everyone affected by lung disease. For help and advice on diseases such as Mesothelioma and Asbestos Lunch Cancer.
Macmillan Cancer Support	Provide practical, medical, emotional and financial support and push for better cancer care
Mesothelioma UK	Funded by Macmillan Cancer Relief provides info & resources for patients and families including causes, diagnosis, treatment options and clinical trials.
MyWavelength.com	Get help & advice from like minded people.
June Hancock Research Fund	Charity in memory of June Hancock also providing help & advice.
Oliver & Co Solicitors	Our company website.