Asbestos victims in Victoria will have improved access to compensation as the state government moves to introduce legislation so that they are not prevented from making a further claim if they develop a terminal illness.

The new law named after Bernie Banton, the late anti-asbestos campaigner, was part of a long campaign by the AMWU along with the Victorian Trades Hall Council and the CFMEU.

Under present Victorian law, a worker who suffers from asbestosis can be awarded damages but cannot seek further compensation if their disease turns into the more serious and lethal mesothelioma.

AMWU Victorian Secretary Steve Dargavel said if Bernie Banton had lived and worked in Victoria he would not have been eligible for compensation for mesothelioma.

“This is something we’ve been working on for a long time and we are glad to see that the government has finally changed the law.

“The new law allows victims to claim for both asbestosis and mesothelioma and this brings Victorian workers in line with other Australian states.

“Victoria currently lags behind other states and the commonwealth in introducing the legislation and asbestos represents a unique problem for the legal system.”

Mr Dargavel said the Victorian government acknowledged that there needs to be an exception for asbestos victims because they were a "special class of people".

"If you’ve been exposed to asbestos, you have no way of knowing whether you will go on to develop mesothelioma.”

The Victorian Premier John Brumby announced on Friday that most of the compensation will be paid through WorkCover, at a cost to the scheme of $35-$85 million over the next 30-40 years, without an increase in premiums

Karen Banton, Bernie’s widow, joined unions in welcoming the announcement.

"I think it's a very special day and I'm sure Bernie's looking down from heaven, feeling very honoured and humbled that his name continues to be associated with the fight to correct injustice," she said.

It is estimated about 50 Victorian workers a year would benefit from the change.

Compensation payments were usually about $35,000-$40,000 for asbestosis but were larger for more serious illnesses.

Mr Dargavel also warned that asbestos still posed a risk to workers.

"There's a lot of asbestos around, this is a live issue for the community. It’s not something that’s going to go away quickly.” 

The new law will be introduced in state parliament later this year.