Britain's biggest insurance firms have lodged a legal challenge against a new law which allows Scots workers suffering from exposure to asbestos to sue for compensation.

Britain's biggest insurance firms have lodged a legal challenge against a new law which allows Scots workers suffering from exposure to asbestos to sue for compensation.

Aviva, AXA Insurance, RSA, and Zurich have lodged an action for a judicial review at the Court of Session in Edinburgh of the Damages (Asbestos-related Conditions) (Scotland) Act which received Royal Assent only last Friday.

The act allows claims for compensation for people affected by pleural plaques. The insurers insist clinical evidence shows plaques are symptomless, do not impact on health or lead to asbestos-related diseases and the legislation overturns a House of Lords decision made in a case two years ago.

They claim the act ignores "overwhelming" medical evidence that plaques do not cause asbestos-related conditions such as mesothelioma, overturns a fundamental UK legal principle that compensation is payable only where physical harm has been suffered through negligent exposure to a risk and fails to fully assess the financial impact on Scottish firms.

Nick Starling, of the Association of British Insurers, said the action had not been taken lightly and claimed the legislation was "ill conceived" and ignored the fundamental legal principle of negligence and clear medical evidence.

A government spokesman said it would "vigorously defend" the challenge.

He said: "We are disappointed that this action to seek effectively to overturn the will of the Scottish Parliament has been taken.

"The insurance companies' action may delay, but will not ultimately defeat, our resolve to defend the rights of people who have been negligently exposed to asbestos by their clients. We firmly believe that our legislation is right in principle and right in law."