Victims Left Hanging

In a recent report released by KPMG, it was revealed that building materials company, James Hardie, is facing a shortfall in its asbestos fund in the coming three years. This consequently places in jeopardy its ability to pay out claims by 2017.

At present, it has been forecast that the Australian Injuries Compensation Fund (AICF), the body set up by James Hardie Industries to pay compensation, may face claims of up to $1.87 billion. However, while the AICF is in receipt of up to 35% of James Hardie’s operating cash flow per annum, it was predicted that by 2017 there might be a shortfall of up to $184 million, curtailing its ability to fulfil its repayment responsibilities.

One of the primary reasons for this shortfall is an above average number of mesothelioma claims in 2014, which consequently increases the amount of cases predicted for asbestos related cases. Moreover, as mesothelioma, as opposed to other asbestos related diseases, is more likely to impact younger people, the projected compensation is at a much higher rate than other asbestos related diseases.

When the AICF was established, one of the conditions in place was the specification that should a shortfall of funding in the foreseeable future arise, the AICF may seek orders from the Supreme Court of NSW by which an Approved Payment Scheme (APS) may be established. The AICF have recently approached the Supreme Court to put this in motion so that the payments of current and future claimants may be balanced.  Thus, individuals will receive their claims in periodic instalments as opposed to a lump sum payment.

The APS is scheduled to commence on 1 July 2015.

 

NSW

A.D. Envirotech Australia Pty Ltd – Head Office
Unit 6/7 Millennium Ct.,
Silverwater, NSW, 2128, Australia
(02) 8541 7214
info@adenvirotech.com.au

A.D. Envirotech Australia Pty Ltd – Laboratory
4/10-11 Millennium Ct
Silverwater, NSW, 2128, Australia
(02) 9648 6669

QLD

A. D. Envirotech Australia Pty Ltd (ADE)
PO Box 288
Upper Coomera LPO,
QLD, 4209 Australia
(07) 5519 4610
info@adenvirotech.com.au

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