HFW Briefing: Supreme Court makes landmark ruling on insurers’ liability for mesothelioma

Supreme Court makes landmark ruling on insurers’ liability for mesothelioma

Zurich Insurance PLC UK Branch v International Energy Group Limited

In this landmark case, a seven-strong Supreme Court considered fundamental issues concerning the way in which the insurance industry is obliged to meet mesothelioma claims. In particular, the Supreme Court considered the following questions:

• Has the passing of the UK Compensation Act 2006 consigned to history the common law rules as to proportionate recovery in respect of mesothelioma?
• Where an employer is found liable for the whole of a mesothelioma victim’s loss but has the benefit of employers’ liability insurance covering only part of the asbestos exposure period, must the insurer bear the whole of the liability?

The case will be of significant interest to employers’ liability insurers and reinsurers with potential involvement in mesothelioma claims.

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