The future of the Compensation Bill hangs in the balance this week as MPs attempt to "hijack" the legislation to squeeze a provision for mesothelioma claims into the Bill.
The MPs, supported by the shipping industry and union law firm Thompsons, want a clause inserted into the Bill to overturn the controversial House of Lords ruling in the Barker case. They argue that the Barker ruling will deprive mesothelioma victims of compensation.
The insurance industry fears that if the band of three MPs are successful it will effectively undermine the Compensation Bill, opening the floodgates for more claims rather than stemming the tide as originally intended.
Insurers and their lawyers are now waiting to see whether the government will bow to the pressure and insert a clause when the Bill receives its second reading in the Commons today.
"This is a Bill which has been hijacked by the asbestos lobby," said one leading legal source. "We now need to wait to see what the government wants to do."
Another senior market source said: "This Bill has been specifically designed for personal injury cases, changing it now could put us back to square one.
"The government has repeatedly told insurers that this is a Bill to clarify the law rather than change it. An amendment would fly in the face of that promise."
John Hutton, the Work and Pension Secretary, has publicly stated his desire to help asbestos victims obtain swift compensation, apparently in response to the Barker judgment.
Parliamentary sources said he has indicated that he is willing to consider an amendment to the Bill to achieve this goal.
Steve Thomas, technical claims manager for Zurich, said: "We would be disappointed if there were an inclusion. We have tracked the Bill closely, and if there were a provision and the House of Lords decision reversed, I would be extremely disappointed."
Lord Hunt of Wirral, who has guided the Bill through the Lords, urged MPs to keep the Bill "simple." He said: "This is an important Bill which seeks to change conduct. Keep it simple, keep it clear."
