A decision to dismantle a board that oversees compensation claims for people with asbestos-related diseases in New South Wales has divided victims' groups.

Set up in 1927, the Dust Diseases Board met once a month to assess compensation applications from people with asbestos-related diseases.

Under changes announced yesterday, that organisation will become the Dust Diseases Authority, but the State Government insists the staff will stay on and there will be no reduction in benefits.

However, the board overseeing the current Dust Diseases Board will be abolished.

It comprises of three union members, three employers and a chairperson.

Finance Minister Dominic Perrotet said those seven people had been told their appointments would be terminated, but they could apply for jobs on a new advisory committee.

"We want to retain the current expertise of the board and we encourage those members who have the expertise from the board to apply," he said.

"But we'd also like to get input from victims' groups and victims to advise the government on dust diseases."

The changes will also see the establishment of a new body - the Care and Insurance Board.

The Minister said the new organisation would process claims faster.

"Under the current arrangements the compensation applications can only be processed on a monthly basis," Mr Perrotet said.

"But under the changes that we're bringing in, they'll be assessed on a more timely basis - every day."

'We're deeply, deeply suspicious'

Asbestos Diseases Foundation president Barry Robson said he was sceptical about the new model.

"We're deeply, deeply suspicious," he said.

"Why change something that has been working for nearly four decades?

"There's never been a hint of scandal, there's never been a hint of someone rorting the system, nothing."

Mr Robson said he would welcome any change that led to victims and their families receiving payments quickly, but said the Government had been light on detail.

"If they can process claims faster that's a plus, but we don't know all the other stuff," he said.

"My underlying concern is that services to victims will dissipate or the amount of compensation could shrink.

"Or the services that the board now supplies to victims, such as having a contractor coming over to mow the lawn or installing a shower in their house or putting an oxygen generator in their home, we're worried that they could disappear."

Asbestos awareness group welcomes invitation to victims' groups

But the Bernie Banton Foundation, an asbestos awareness and advocacy group, applauded the move.

"Any reform by the NSW Government of the Dust Diseases Board that guarantees the maintaining of current levels of benefits and services, along with streamlining the application process, can only be seen as positive," the foundation said in a statement.

"We are encouraged that the Baird Government is aiming to reduce approval time of applications."

Maree Stokes' (at microphone) husband died of asbestos-related disease in 2003, and she says the board handled her case with great care. ( Supplied: AMWU )

The statement went on to congratulate the Government for inviting victims' groups to be represented on the new advisory committee.

"The fact the proposed advisory committee will for the first time give victims' support organisations a direct input on how victims are helped, will be of significant benefit to sufferers," it said.

Opposition Leader Luke Foley Labor called on the Government to reverse the decision.

"I heard the Minister this morning talking about his desire for a scheme that looks after its customers," he said.

"I'd say to the Minister - these people aren't customers, they're victims, have a bit of compassion."

Mr Foley said he could not understand the decision.

"There's no public policy rationale for this decision, perhaps it's an ideological agenda from a Minister trying to make a name for himself," he said.

Dust Diseases Board handles families with care: widow

Maree Stokes lost her husband to asbestos-related disease in 2003.

"He was probably only 19 when he was an apprentice panel beater," she said.

"They used to put the asbestos in their hands and make a paste and they'd put it up underneath the dashboard and then they'd weld and he'd go home with it all over his head, and hands and hair."

Now vice president of the Asbestos Diseases Foundation, Mrs Stokes said the Dust Diseases Board continued to handle families with the care they needed.

"I think it was in 1997 when we first approached the board, they were just great," she said.

"They made sure I was compensated fortnightly with a small amount to help me get through all the times I had ahead of me.

"It was only a small organisation then, it's just exploded now, because of the amount of people who've been diagnosed."

Mrs Stokes agreed that at the moment the processing of claims could take a while.

"It depends on when they put the application in because the board only meets once a month," she said.

"So if they put the application in quite late then they have to wait a month until the application is approved."