The Department of Work and Pensions (DWP) has announced proposals to create an Employers’ Liability Tracing Office, which would help employees injured at work contact their employer’s insurance company.

Plans for the tracing office include an electronic database of employers’ liability insurance policies, which should make it easier to track down records and improve the existing tracing service.

Thousands of people suffering from industrial diseases are thought to lose out on making compensation claims because they are unable to trace the relevant insurers.

Speaking at the launch of the ‘Accessing Compensation – supporting people who need to trace Employers’ Liability Insurance’ consultation on Wednesday (10/02/10), DWP Minister Lord McKenzie said:

‘Far too many people suffering from serious industrial diseases are unable to trace their insurance polices and get the compensation they deserve.

‘That is why we want to set up a better tracing service, with a dedicated database to help them track down these policies – and a fund of ‘last resort’ if all else fails.

‘We will continue to work with insurance bodies, trade unions and campaign groups to ensure all those affected get the help they need.’

The consultation will consider how the tracing office could be best managed and funded.  It will also look at the scope of help that could be provided by an employers’ liability insurance bureau, the timing of claims and how much compensation could be paid – as well as examining further measures employers might implement to meet their obligations to maintain employers’ liability compulsory insurance.

A voluntary Code of Practice for tracing employers’ liability insurance policies set up in 1999 has led to some improvements, but many individuals are still left without help, the DWP said.

When a worker is injured or suffers illhealth because of their work, they would normally claim civil damages from the employer through his employers’ liability insurance policy, says the DWP.

However, the department has found some people have been unable to trace their employers’ liability insurance policy and make a claim – often because some industrial diseases only appear decades later, when employers might have ceased trading or have not kept old insurance records or have lost them.

The DWP says that, when it is not possible for people with certain lung diseases – including mesothelioma – to claim civil compensation, the government provides help through the Pneumoconiosis etc (Workers’ Compensation) Act 1979 and 2008 Mesothelioma Scheme.

More information about the consultation is available at www.dwp.gov.uk/consultations.

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