Victory for Claimants in mesothelioma trigger litigation against Insurers

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The case results from a decision by a number of UK insurers to decline that they were the correct insurer for payment for mesothelioma claims.

Following a previous court decision they sought to argue that their employers liability polices should be read on a contracted basis (when the tumour developed) rather than a causation basis (when inhalation occurred) and as a result they were not liable to pay . This was in circumstances where the claimants had established that the companies they insured had exposed them to asbestos and as a result they had sustained injury.

The Supreme Court has found in favour of the claimants and ruled that for employers' liability insurance the correct insurer for payment of damages is that on cover at the time of inhalation rather than when the tumour develops.

In contrast it has decided for Public liability insurance polices which are traditionally written on an 'occurrence' basis  that these will probably respond on the date that the tumour develops and not on inhalation.

This decision will be welcomed by Claimants who were faced with the prospect of having obtained judgment in their favour not receiving any monetary compensation.

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