The Compensation Act contains provisions relating to the law of negligence and breach of statutory duty; damages for mesothelioma; and the regulation of claims management services.
The Compensation Bill was introduced to the House of Lords on 2 November 2005, and received Royal Assent on 25 July 2006.
Part One: Provisions relating to the law of negligence and breach of statutory duty and on damages for mesothelioma
The provisions on negligence and breach of statutory duty make clear that courts considering what standard of care is reasonable in a claim for negligence or breach of statutory duty can take into account whether requiring particular steps to be taken to meet the standard of care would prevent or impede a desirable activity from taking place. This will improve awareness of this aspect of the law and will help to ensure that normal activities are not prevented because of a fear of litigation and excessively risk averse behaviour. There is also a provision to the effect that in claims for negligence or breach of statutory duty, an apology, offer of treatment or other redress shall not of itself amount to an admission of liability.
The provisions on mesothelioma establish joint and several liability in cases where a person has contracted mesothelioma as a result of being negligently exposed to asbestos. This will enable victims of mesothelioma to receive full compensation from any responsible person as quickly and easily as possible. The responsible person will then be able to claim back contributions from other responsible persons.
Part Two: Provision of regulated claims management services
Part 2 provides the statutory framework for the regulation of claims management services. Initially, the Secretary of State will be the regulator, supported by a senior civil servant who will be the Head of Regulation. A trading standards unit will provide the monitoring and compliance function, including processing applications for authorisation, investigating any suspected evasions of authorisation and monitoring compliance with the regulatory rules. A person providing claims management services without the requisite authorisation (or if exempted or subject to a waiver) will be committing an offence and liable to a maximum of up to 2 years imprisonment. Those providing claims management services will be required to give consumers clear advice about the validity of their claim, options for funding the costs and provide a complaints mechanism if things go wrong.
Consultation on the Compensation Act:
The Compensation Bill was introduced to the House of Lords on 2 November 2005.
'Compensation culture' inquiry
The Constitutional Affairs Select Committee started an inquiry into the UK's 'Compensation Culture' and Contingency Fees on 6 December 2005. Further information can be found on the parliament website.
House |
Stage |
Date |
|---|---|---|
| Lords | Introduction | 2 November 2005 |
| Lords | Publication | 3 November 2005 |
| Lords | Second reading | 28 November 2005 |
| Lords | Grand committee | 15 December 2005 |
| Lords | Grand committee | 20 December 2005 |
| Lords | Grand committee | 16 January 2006 |
| Lords | Grand committee | 23 January 2006 |
| Lords | Grand committee | 25 January 2006 |
| Lords | Report | 7 March 2006 |
| Lords | Third Reading | 27 March 2006 |
| Commons | Second Reading | 8 June 2006 |
| Commons | Standing Committee | 20 June 2006 |
| Commons | Standing Committee (2nd sitting) | 22 June 2006 |
| Commons | Standing Committee (3rd sitting) | 22 June 2006 |
| Commons | Standing committee (4th sitting) | 27 June 2006 |
| Commons | Report and Third Reading | 17 July 2006 |
| Lords | Consideration of Commons' Amendments | 19th July 2006 |
| Commons | Royal Assent | 25th July 2006 |
| Lords | Royal Assent | 25th July 2006 |