SUCCESSFUL compensation claims over illnesses such as the Swindon Disease, mesothelioma, have raised companies' insurance premiums by up to half in the last year.

Now the Government is preparing measures designed to help employers cope with the spiralling cost of liability insurance.

There have been dozens of claims by mesothelioma victims and their loved ones in the Swindon area alone over recent years, usually against the representatives of the former British Rail.

Mesothelioma, an aggressive respiratory cancer, is known as the Swindon Disease because of its prevalence among former staff of the old Railway Works, many of whose jobs involved stripping and replacing asbestos lagging in engines and carriages.

April saw the opening of the Swindon Disease memorial Garden in Queen's Park.

It was built by Swindon Council and paid for with £12,000 raised by members of the public and local firms and businesses in an Evening Advertiser appeal.

Thring Townsend, the Swindon solicitors which has helped dozens of sufferers and their families, acknowledges that mesothelioma is a factor in increasing premiums.

However, spokesman Graeme Chisholm said: "Having said that, the only claims which are successful are those which are legitimate under law, and where liability is established against a third party involved.

"If you haven't got a legal basis for a claim, it will not be successful."

Mr Chisholm added: "I would imagine that mesothelioma claims are a factor in premiums, although many different types of claims for other conditions and injuries are also probably factors."

Government proposals for helping employers bear the burden of increased insurance premiums include working with the insurance industry to create risk-related policies, under which firms with good health and safety records would not have to pay so much.

The Government, which revealed the degree to which premiums are soaring, is also considering moves to separate policies covering long-term industrial illness such as mesothelioma, certain other cancers and asbestosis, which should be made distinctive from those covering problems such as work-related industries.

Minister for Work Nick Brown said: "The standards of the insurance industry will be put under the spotlight to ensure the fairest deal for all."