Claimant firms were hailing a significant victory following a High Court ruling last week that will allow thousands of former workers to continue claiming compensation for a 'pleural plaques' lung condition.
However, a cut in the level of damages to be awarded for the condition will save the insurance industry millions of pounds.
Insurers had attempted to argue that claimants with pleural plaques should not be entitled to compensation, because the plaques do not normally cause symptoms and claims are brought by the 'worried well'.
Tens of thousands of people have already received between £5,000 and £15,000 each in compensation for the disease since a landmark ruling in the 1980s. However, Mr Justice Holland slashed the level of future awards to between £6,000 and £7,000 for full and final awards, and between £3,500 and £4,000 for provisional awards. Some 3,000 to 15,000 new cases are diagnosed every year.
The test case was brought by ten men against Norwich Union and Zurich. The insurers have been granted leave to appeal.
Ian McFall, head of the national asbestos litigation team at Thompsons, which acted for a number of the claimants, said: 'It is disappointing that the level of compensation has been reduced. But the judge dismissed the defendants' suggestion that pleural plaque claims are brought by the worried well.
'Pleural plaques bring an increased risk of malignancy, and cause considerable anxiety in knowing that the damage has occurred and there is an increased risk.'
Peter Kenworthy, partner at Ricksons in the north-west, said the ruling would put a brake on damages. He said: 'This will have huge cost implications for the insurance industry, which will no doubt be welcomed. Although defendants won't see an end to claims, the rise in awards has been addressed saving the insurance industry millions of pounds.'
A Norwich Union spokesman said the insurer was considering an appeal to a higher court to obtain greater certainty.
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