Background to Coal Health
The Department of Energy and Climate Change (DECC) 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:
- Respiratory disease (chronic bronchitis and emphysema) resulting from the dusty conditions
- Vibration disease (Hand Arm Vibration Syndrome) caused by using vibrating tools.
DECC'S Responsibility
British Coal (BC) was 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 judgment, 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 DECC?
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 BERR 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 judgments only relate to England and Wales, similar arrangements were negotiated to allow Scottish claims to be processed.
How?
Claims Handling Agreements (CHAs)
Claims Handling Agreements (CHAs) 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 BERR'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 Judgments.)
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 BERR. 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 Legal Complaints' Service on 0845 608 6565
Monitoring of Progress
The CHAs were approved by the judges concerned who are still in overall charge of the process of paying out the compensation. The Department and the miners' solicitors report back regularly to the judge on progress (3-4 times a year for each disease). The CHAs are contracts between the Department and the miners' solicitors. Any changes can only be introduced by mutual agreement
Delivery of Scheme
The Schemes are delivered by Capita, our claims handlers. The Medical Assessment Process (MAP) for both respiratory disease and VWF 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.
These are the biggest personal injury schemes in British legal history and possibly the world.
Around 762,000 claimants have been registered in both schemes and it is estimated that the Government will spend around £7bn in total.