February 15, 2006
The U.S. Senate has killed the $140 billion asbestos trust fund that was proposed recently. The bill, which was designed to remove asbestos cases from civil courts and speed the payments to victims of asbestos, was voted against.
The bill’s proposal was meant to be a private fund that would be paid for by manufacturers, suppliers, insurers, and other businesses affected by the asbestos litigations. Many argued, though, that the funds would simply not be sufficient enough to cover all the claims either now or those that may be filed in the future. This fear brought on the very realistic concern that when the funds run out, it could seek taxpayer bailout.
These opponents in the senate cite a Congressional Budget Office report that suggests that the proposed asbestos trust fund might fall short by $10 billion. In the end, the bill could possibly shortchange the victims of asbestos.
While the proposed bill may be working in favor of manufacturers, the insurance companies, who were initially planned to give to the asbestos fund, may be harmed in the bill. Insurers worried that the industry’s $46 billion contribution would not be the end of its liability. They suggested that the medical criteria used to decide who gets awards are insufficient.
Co-sponsors of the bipartisan measure, Sen. Arlen Specter and Sen. Patrick Leahy, plan on bringing the measure back for another vote. For now, though, the number of asbestos claims continues to rise.
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