29 May 2014
On 30 January 2014 (the date of Royal Assent) the Mesothelioma Act 2014 established a scheme of last resort (the Diffuse Mesothelioma Payment Scheme) to compensate sufferers of mesothelioma who have been negligently exposed to asbestos at work. Section 13 of the Act requires the Secretary of State to make regulations requiring ‘active insurers’ (employers liability insurers, we understand) to pay a levy for the funding of the Scheme.
Although the regulations implementing the insurance levy have not yet been published, we understand that the levy will be calculated as a percentage of UK employers’ liability premiums (percentages of 2.74% and 3.0% have been mentioned), and at quarterly intervals, although the first levy payment for the whole of 2014 is expected to be paid in Q4 2014.
We will provide further updates when details of the levy are confirmed.