Background
to Coal Health Claims
The Department of Trade and Industry (DTI) has
now closed, to new claimants, the two major personal injury
compensation schemes for health problems caused by working
underground in British Coal mines.
These are:
1. Respiratory disease (chronic bronchitis and emphysema) resulting
from the dusty conditions
2. Vibration disease (Hand Arm Vibration Syndrome) caused by using
vibrating tools.
DTI'S RESPONSIBILITY
British Coal (BC) had been taken to court in
1996 under two separate group litigations supported by
the mining unions. In 1997, BC was found negligent in
relation to Vibration White Finger (VWF), and in 1998
for lung diseases.
In each judgement, a “date of guilty knowledge”
was set by the High Court.
For respiratory disease it was 4 June 1954 in England
and Wales and 4 June 1949 in Scotland.
For VWF it was 1 January 1975.
It was judged that before these dates, with the
knowledge and technology available to British Coal at
that time, they would not have been expected to be aware
of the risks of exposure.
However, after this date, British Coal should have
been aware of the risks and should have taken steps to
protect its employees against coal dust, fumes, and vibration.
Why DTI?
The liabilities of British Coal transferred to
us on 1 January 1998 (under terms of Coal Industry Act
1994).
Following the break up of British Coal, the judges
ordered the DTI to work with solicitors representing the
miners and formulate two schemes to cover lung and vibration
disease.
The detailed schemes are set out in the Handling
Agreements which mirror English Common law as far as possible
and cover how liability is established and compensation
paid. They act as an alternative to taking a claim through
the courts. The schemes avoid the courts because many
thousands of miners and widows were expected to lodge
claims and the sheer volume would have clogged them up
for many years. We estimate that it would take 15-20 years
to settle the final case if each claimant went through
the courts.
Although the judgements only relate to England
and Wales, similar arrangements were negotiated to allow
Scottish claims to be processed.
How?
Handling Agreements
Handling Agreements for the two schemes were
negotiated with a group of solicitors (for each disease)
who were the chosen representatives for the large numbers
of firms involved. The VWF Agreement was signed in January
1999, and the respiratory Agreement was signed in September
1999. The Agreements are necessarily complex as they define
exactly how claims will be dealt with by claimants' solicitors,
the DTI's claims handlers, the medical assessors etc.
They specify the medical assessment process and capture
in a Scheme the compensation a claimant would have expected
to get if he had pursued his claim under common law through
the courts. (They give claimants a fair entitlement tailored
to reflect their disability. They are not flat rate schemes
and reflect other factors set out in the Court judgements.)
Claimants should not
be concerned about the cost of pursuing a claim.
If a claim is successful
there should be no need for solicitors or other claims
handling organisations to charge a fee or deduct any compensation
from the claimant because the legal fees will be paid
by the DTI. If any claims handling organisation (other than a union of which
the claimant or the deceased miner has been a member)
suggest other arrangements, advice should be sought elsewhere. Claimants should ask if there will be any charge if their claim
is unsuccessful, as many solicitors will waive their charges
if they are unsuccessful.
If claimants are being charged by their solicitor
and they wish to complain, they should contact the Law
Society on 0845 608 6565.
Monitoring of Progress
The Handling Agreements were approved by the
judges concerned who are still in overall charge of the
process of paying out the compensation. The DTI and the
miners' solicitors report back regularly to the judge
on progress (3-4 times a year for each disease). The Handling
Agreements are contracts between the DTI and the miners'
solicitors. Any changes can only be introduced by mutual
agreement.
Delivery of Schemes
The Schemes are delivered by Capita, our claims
handlers. They are based in Sheffield. The medical assessment
process (MAP) for both respiratory disease and Vibration
White Finger is dealt with by Atos Origin. The specialised
MAP2 for VWF claimants who claim for Services - additional
assistance in carrying out household tasks such as gardening
and DIY - is conducted by Capita Health Solutions. Claims
are registered on behalf of claimants by solicitors, who
are represented in respiratory disease negotiations by
the Claimants Group of four leading solicitor firms. In
VWF three firms represent the mass of solicitors. 300
firms of solicitors have registered claims. Details of
these firms can be found on the website under 'Solicitors
handling respiratory and VWF claims'.
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These are the biggest
personal injury schemes in British legal history
and possibly the world. |
The DTI are paying out
around £1.8 million every working day in compensation for
respiratory and vibration related diseases. Around
746,000 claimants have been registered in both schemes and
it is estimated that the Government will spend over £7.5bn
in total.
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