Insurance Law Monthly

The law in seeking to determine the compensation rights of the victim to the dreadful disease of mesothelioma, the result of exposure to asbestos, has faced two difficulties: when does the victim have a claim against the person who exposed the victim to liability; and in which circumstances does the person guilty of exposure have a right to claim against its liability insurers. These matters have been worked out in a series of decisions of the Supreme Court, supplemented by legislative intervention.

The issues surrounding payment protection insurance (PPI) are well known and have taken up much of the attention of the Financial Conduct Authority and the Financial Ombudsman Service as well as the courts. Such policies are designed to insure a borrower against various risks which might lead to inability to repay the debt, eg, illness or loss of employment. Unfortunately, such policies were mis-sold in two main respects: the insurance was packaged up in the loan, so the assured was often unaware that he or she was paying PPI premiums at all; and the policies were supplied to people who could never benefit from them, eg, the self-employed.