A decision in the UK House of Lords on pleural plaques could save UK insurers with asbestos liabilities as much as £1.4 billion ($3.2 billion).

The UK Parliament's upper house has confirmed a previous court ruling that insurers do not need to compensate claims in relation to pleural plaques, as the condition is benign and does not lead to mesothelioma.

Pleural plaques are localised areas of scar tissue attached to the outer wall of the lung that are caused by exposure to asbestos.

Deloitte has estimated the ruling could reduce insurers' asbestos liabilities of between £4 billion ($9.2 billion) and £10 billion ($23 billion) by anything from £200 million ($459 million) to £1.4 million ($3.2 billion).

Deloitte Director Darren Michaels says most future costs would result from other asbestos-related conditions such as mesothelioma.

"While insurers may welcome this news, asbestos liabilities will continue to cause considerable concern for the industry in years to come."

The test case was originally brought by Norwich Union and Zurich Financial Services.