UK insurers have lost a Supreme Court appeal to have compensation claims made in Scotland for the asbestos-related condition pleural plaques dismissed.

Pleural plaques is a condition involving a thickening of lung membranes due to asbestos exposure, but is not classed as a disease and has no symptoms. The complaint can lead to more serious conditions, such as lung cancer, mesothelioma or asbestosis.

The UK House of Lords had previously ruled that pleural plaques victims could not claim compensation, but the Scottish Government passed the Damages Act in 2009, allowing claims to be made.

The Association of British Insurers says insurance companies appealed the legislation because it is “fundamentally flawed”.

Director of General Insurance and Health Nick Starling says insurers believe that the Damages Act “ignores overwhelming medical evidence that pleural plaques are symptomless, and the well-established legal principle that compensation is payable only when there is physical harm”.

“We are very disappointed that the court has not found in our favour on this important principle of law. Insurers will now consider carefully this judgement and what it means for them.”