Chester Street ‘rescue’

Discussions between the Treasury and the insurance industry have produced a scheme to ensure compensation payments to asbestos victims, insured by the now bankrupt Chester Street. Administrator PricewaterhouseCoopers had estimated availability of a mere 5% payout for former Iron Trades liabilities. The scheme will provide for claims agreed by Chester Street prior to liquidation to be paid through the Policyholder’s Protection Board, and a new insurance industry funded body, the Financial Services Compensation Scheme, will cover at least 90% of earlier claims.