Four of the biggest insurers in Britain have commenced legal action over Scottish legislation that would allow compensation claims against a benign asbestos-related condition.

Aviva, Axa, RSA and Zurich last week launched a joint judicial review against the Damages (Asbestos-related Conditions) (Scotland) Bill, which was passed last month by the Scottish Parliament.

The legislation allows Scottish workers to sue for asbestos exposure if they contract scars on the lung known as pleural plaques – a symptom of asbestos exposure that is generally harmless and not linked to mesothelioma, the fatal disease central to asbestos-related compensation claims.

The insurers oppose the new law on the basis that it would overturn a fundamental legal principle that compensation is payable only where physical harm is suffered through negligent exposure.

The four insurers together represent more than half of the UK employers’ liability insurance market. The Association of British Insurers has also warned the legislation would unfairly burden taxpayers and result in higher insurance costs for all companies.

The judicial review will argue that the legislation contravenes European human rights laws dealing with rights to a fair trial and insurers’ economic rights.