The Diffuse Mesothelioma Payment Scheme (Levy) Regulations 2014 require active insurers to pay an annual levy based on their relative market share for the purpose of meeting the costs of the Diffuse Mesothelioma Payment Scheme (DMPS). This is in line with the commitment by the insurance industry to fund a scheme of last resort for sufferers of diffuse mesothelioma who have been unable to trace their employer or their employer’s insurer.
I can announce today that the total amount of the levy to be charged for 2015/16, the second year of the DMPS, is £23.2m. It is estimated that the full cost of the scheme in 2015/16 will be £31m, but, as the amount levied in 2014/15 was greater than the final cost of the scheme for that year, £7.8m has been carried forward into 2015/16. The £23.2m will be payable by active insurers by the end of March 2016.
Individual active insurers will be notified in writing of their payment amount (i.e. their share of the levy), together with how the amount was calculated and payment arrangements. Insurers should be aware that it is a legal requirement to pay the levy within the set timescales.
I am pleased that the DMPS has seen a successful first year of operation, the first Annual Report for the scheme was published in November 2015 and is available on the gov.uk website. I hope that members of both Houses will welcome this announcement and give the DMPS their continued support.
This statement has also been made in the House of Lords: