Towards a Comprehensive Compensation Programme Available to Purchase

The recent experience with “toxic torts” — litigation involving those who are suffering slowly emerging injuries and diseases caused by exposure to hazardous substances such as asbestos — has underlined the need for a change in the tort liability system. The burden of asbestos lawsuits prompted UNR Industries of Chicago, the Manville Corporation (the nation's largest asbestos manufacturer), and others to file for protection under federal bankruptcy laws. Some 16,000 lawsuits were reported pending against Manville amounting to between $2 billion and $5 billion in potential liabilities. Several hundred firms are facing similar claims, and according to the Asbestos Compensation Coalition, from 400 to 500 new lawsuits are filed each month against asbestos manufacturers. The magnitude of this problem threatens the viability of the property and liability insurance business and raises the questions about the effectiveness of the present tort liability system in assuring adequate compensation to accident victims.