Mesothelioma

The coverage of employers’ liability policies as regards mesothelioma claims remains problematic on a number of levels. The latest clarification, the decision of Cooke J in International Energy Group Ltd v Zurich Insurance plc UK [2012] EWHC 69 (Comm) is not of direct relevance to English law, because the liability in question was governed by the law of Guernsey. However, there are important comments in the judgment as to how the matter would have been determined under English law.

IEG: the facts

IEG, the claimant assured, was the successor in title of the Guernsey Gas Light Co Ltd, which was insured under employers’ liability policies in the period 31 December 1982 to 31 December 1988 by Midland Insurance, in respect of which Zurich was the successor in title. The dispute related to a Mr Carré, who had been employed by GGL from 13 November 1961 until 31 December 1988. He had been exposed to asbestos throughout his period of employment, including the six-year period during which Midland was on risk. Sadly Mr Carré contracted and died from mesothelioma. Judgment was obtained against GGL in the sum of £278,451.60. IIG sought to recover the full amount of that sum from Zurich. One other insurer, Excess Insurance Co Ltd, had been traced, and was on risk for the period 31 December 1978 to 30 December 1980.