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British insurers to challenge asbestos ruling

British insurers are considering legal action over a Scottish Parliament bill that threatens to expose them to hefty asbestos liabilities.

Last week the Scottish Parliament passed the Damages (Asbestos-related Conditions) (Scotland) Bill. The legislation would allow Scottish workers to sue for asbestos exposure if they contract scars on the lung known as pleural plaques.

Pleural plaques are a symptom of asbestos exposure but are generally harmless and not linked to mesothelioma, the fatal disease that is central to asbestos-related compensation claims.

The Association of British Insurers (ABI) says the legislation “ignores the facts about pleural plaques and could have far-reaching, unintended consequences”.

“Insurers are seriously considering mounting a judicial review against the Bill, having taken legal advice,” ABI said in a statement.

ABI Director of General Insurance and Health Nick Starling says the legislation “ignores the fundamental legal principle that compensation is paid only where there are physical symptoms”.