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Consultation over employers’ liability fund

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The government has launched a consultation into the introduction of an employers’ liability fund to compensate workers who develop serious industrial illnesses but cannot trace insurance providers.

Workers would receive compensation from a newly formed Employers’ Liability Bureau (ELIB), which would create a centralised fund from premium fees placed on existing employer liability insurance policies.

Currently, employees who develop industrial illnesses receive no compensation when an insurer cannot be traced. But, if the consultation is successful, suffering employees would apply to ELIB directly for compensation.

“This consultation document sets out the Government’s proposals to improve support for people who need to trace Employers’ Liability Insurance policies in order to obtain compensation for an accident or industrial disease sustained in the course of their employment in Great Britain,” states the consultation document.

Construction unions have also welcomed the news.

“Too often workers develop life-threatening illnesses because employers have failed to provide adequate protection from harmful substances. If a worker’s health is ruined they deserve compensation. By establishing the ELIB, the government will ensure this occurs,” said Union of Construction, Allied Trades and Technicians (Ucatt’s) General Secretary, Alan Ritchie.

Industrial sufferers could be further buoyed by the Department for Work and Pensions’ (DWP) announcement that an Employers Liability Tracing Service may be introduced to track down illusive insurance providers.

“Far too many people suffering from serious industrial diseases are unable to trace their insurance polices and get the compensation they deserve,” DWP minister Lord McKenzie said.

“That is why we want to set up a better tracing service with a dedicated database to help them track down these policies, and a fund of last resort if all else fails.”

The consultation will terminate in early May.


Written by Andrew Hodges

February 18, 2010 at 6:47 pm

Posted in Comment, LinkedIn

Tagged with , ,

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