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Check you life insurance policy for loopholes

Date: Thu, 17 Nov 2005

Consumers are being warned to make sure they double check their life insurance policies for loopholes otherwise they could risk losing out.

A number of victims of a lung disease caused by asbestos are facing losing their right to compensation from life insurance provider Norwich Union over a legal dispute over policy terms.

Long-term exposure to asbestos is believed to cause a lung condition called pleural plaques – patches of thickening in the lining of the lungs – although not a life threatening disease; sufferers often develop related conditions including cancer mesothelioma.

It is estimated that around 14,000 people suffering from pleural patches lodge compensation claims each year, costing the insurance providers around £1 billion per annum.

However, Norwich Union has now appealed against a High Court decision that pleural plaques should remain subject to compensation, arguing that it is not an injury covered by many policies.

Ian McFall of Thompsons law firm, that is representing many claimants, believes this is not the case.

"For over 20 years the courts have accepted that pleural plaques, together with the increased risk of future disease and related anxiety, constitutes an injury and should therefore be compensated," added Mr McFall.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.