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Other asbestos disease causes smoked out

Some Australian insurers are trying to take some of the financial sting they’ve experienced as a result of the asbestos claims crisis by suing tobacco companies, which they say have played a role in asbestos-related diseases.

Some insurers have launched cross-claims before the NSW Dust Diseases Tribunal against tobacco companies in a bid to reclaim some of their losses arising from asbestos-related litigation.

An Allianz spokesman confirmed with Sunrise Exchange News that the insurer has launched a claim against British American Tobacco Australian Services after being ordered to pay $200,000 compensation to Allan Mowbray, who contracted a fatal asbestos-related disease, but also smoked.

Although he couldn’t comment on the case, the Allianz spokesman said such cases would still see the claimant receiving a similar compensation figure, but the financial burden would be spread between the insurer and tobacco company.

One insurer who wished to remain anonymous told Sunrise Exchange News doctors in previous cases have shown that 95% of the claimant’s cancer had been caused by smoking and only 5% by asbestos exposure. “Even though the majority of the cancer was caused by smoking, the [asbestos] insurer still gets hit for the full compensation payout and has to go after the tobacco company separately,” the insurer said.

The news comes after last weeks’ announcement by James Hardie Industries that its asbestos claims foundation has a future shortfall of about $800 million. It says it expects the foundation will run out of funds in the next five years, with the burden for compensation switching to governments.