Employers’ liability law is important for every company or any employer and each employer is binded by law to insure his or her employees. The Association of British Insurers has been lobbying for changes in this law such as increasing the premium payment by the employer since most of the insurance companies have not been making profits due to large amount of compensation made to the claimants. The other problem the reforms addressed was which illness that can lead to compensation and if they insure what fee are they going to charge to a certain illness since diseases are unpredictable.
The association also called for ways of addressing legal costs that accounted for up to 40% of the total claims. This paper gives the background on what led to the pressing of employer liability reforms and when they began. Who are the key players in the reforms and at what stage the reforms are in. The Progress Background information The lobbing of reforms began as early as July 2002 but up to date there has been no success in passing a bill that will implement the reforms.
The main reason as to why the employer s’ liability insurers lobbied for these reforms was because the huge amount of compensations that were being made to the victims of Mesothelioma a type of cancer that attacks the lining of lungs and causes death within 18 months. The employer liability insurers argued that the policy that was in use dealt with work related accidents within the line of duty and not industrial diseases. And they wanted the employers to fund some of the claims as they had been under priced while the cost of industrial diseases was high.
The main objective of the reforms was to help the insurance market function properly without getting into losses, secondly was to help in the lowering of compensation cost to the victims without the industry suffering and lastly was to help the insurance company to be competitive as other businesses. The reforms also proposed a statutory data base for employer’s liability in which all the information could be gotten about the employer