Document rx3gDDD0DgrvRBNq4XzawM3EG

FILE NAME: Eternit (ETER) DATE: 1977 Feb 10 DOC#: ETER004 DOCUMENT DESCRIPTION: Turner & Newall Board Meeting, Internal Report Health Risks & Asbestos Products - Insurance Matters Turner & Newall Llmltod Board Meeting - to n~l InourAnoe Matter' it&dr HEALTH! KISK3 AND ASBESTOS PRODUCTS , ., Insurance ' <; . Publio Liability ' ' 4 Z ----- ---w# logoi liability to member of the publio for injury to persons, including health risks, arising from products supplied worldwide from premises in the UK is covered by our publio liability insuranoe to the extent of 3M in any one period of insuranoe. .. The present period of insuranoe runs from 1 January 1977 to 31 December 1977* This Insuranoe is subjeot to an excess of 5,000 for any claim arising from fire, or 500 in respect of any other olaim. This insuranoe does not extend to liability produots supplied from premises outside the UK, amd it is the i responsibility of the overseas oompanies to arrange their own insurances, including liability insurances. TAN has at present no insuranoe proteotion in respeot of any claim which may be made against TAN arising from products supplied from premises overseas. Inquiries have been made to soo if it is possible for TAN to obtain . a worldwide umbrella cover to protect TAN in oase of liability for injury oaused b ^ o n e of its overseas sub sidiaries. It is believed that limited protection could bo obtainod, but insurers may insist that full Cont. . - 2- publio liability inouranoo is already in existence for each overseas subsidiary. Furthermore, inaurera would insist on a substantial ded^ptdble, and it seems that US 1M would be likely, |9ut it could be as high as US 5M. Such an Insurance oover would do little more than proteot the TAN balance sheet against a major oataatrophe. A considerable amount of investigation would be necessary before cover could be obtained, involving reports on precautions taken by each overseas company in respect of each produot, .quality.control procedures, and any other aspect which may affect the risk. In view of the substantial amounts of work involved, no steps will be taken to obtain a quotation without the approval of fh* hut if it is desired to have suoh a quotation, we should aot quickly before the liability market deteriorates further. c^Jc/ Employers Liability As with publio liability, it is for the overseas com panies to make thoir own arrangements for employers liability insurance. As far as the UK is oonoemed, TAN has traditionally assumed liability for olaima arising from asbestosis. When the Employers Liability (Compulsory Insurance) Act came into force we found ourselves in aome^dlffj^ul t y ^ ^The PxJ2s^^lsituation is that our insurera^/provide we n i t h the certificates roquirod by tho Act, but the clause in the policy excluding aebeatoaia liability still romains. Inisurers. havo^ indicati'ng t*hat t"hey are not hhnaappppyyywwiith -this , J state of affaire, and we have to egr>aj yltft they that it le-APar--from -satisfactor y. Insurer s ftre- concerned bocause einoo 1972 they have been carrying a risk, / y\ the certificate, vhioh is opooifically exoluded from the polioy, and furthermore that it ie a continuing risk for claim* vhioh may take up to twenty years to arise. 'Insurers*have 'TBxZ. forward a suggestion that v* consider setting up a trust fund eo that olaims oould continue to be paid ' ' , o even if T&N beoame unable to meet them. This not regarded by T&N as a practical solution. On the other hand, TAN hsevo asked inauc^Hre/to quote a premium for full oover within the ttrns of the Aot but-,as yejt- eii -*o. -n o response-to this request hair baen xecslved . The obvious solution bum Lu be for fN to continue to settle asbestosis claims, and for insurers to charge a premium for the other risks which refleot^ their contingent liability test/meet asbestosis olaims if ^ c d -e .^ ea* TA}i ever faibfto do so, but Anowrarnr aie re lustiest OLrt ^ tu-du Itrtst-- Negotiations arr1uunLJrtruing, Labelling of Asbostos Produots Thoro is no statutory liability on TAN to label goods containing asbestos, and no request has ever been reooived from lnsurors for this to be done. lhe.TAM companies in the UK are, however, introducing labelling of products in accordance with the recommendations*if the Asbostos Information Committee.h ere it ie practicableto de this anrf-where there are me avseeU lmg-esE-- srrvtnl oon sId ration sr O- K. The precautions vary from company to company and from produot to product but generally tho position can be Seno owe n to 0 summarized as follows- Ferodo UK Sales . Overseas Sales 99$ of asbestos produots are labelled no products are labelled ISA UK Salos USA Sales Other export sales the vast majority of asbestos products are labelled the vast majority of asbestos produots sold in the USA are labelled no produots are labelled JASL UK Sales Overseas Sales all produots jure labelled exoept pipes and certain produots produoed by the Engineering Division 9 Pipes are not labelled and produots of the Engineering Division are only labelled where a country1s legislation demands. Other produots are labelled. Engineering Components no produots are labelled but consideration is being given to labelling oertaln produots