As an employer you have liability towards your employees on two fronts:
Under Labour Law – Labour Law generally stipulates that if an employee gets hurt whilst working, the employer is responsible for the resulting medical expenses, salary during absence and compensation for disability suffered. This is irrespective of whether the employer is at fault or not. The amount payable is stipulated under the Labour Law of that country and it differs from one country to other. This exposure is protected under our Workmen’s Compensation Policy.
Under Common Law/Sharia Law – If an employee suffers injury where he can reasonably attribute such injury to employer’s negligence or fault, he may proceed for compensation under the Sharia Law/Common Law to obtain higher compensation. We can protect this exposure by providing ‘Employer’s Liability Extension’.
The following extensions are also available for purchase:
Transportation Cover – This covers accidents happening during transportation to or from place of work. We generally provide this extension at no extra cost.
24 Hours Cover – The basic cover provides coverage only whilst the employee is ‘on duty’. ‘Off Duty’ cover can also be purchased at an additional premium. The coverage provided under this extension is in respect of Death/Permanent Disability.
Medical Expenses – Medical Expenses relating to work relating injury covered under the policy is covered under this extension.
Repatriation Expenses – In the event of Death or Permanent Total Disability of the employee, this extension reimburses the cost of transporting the body/employee back to his home country.
One of the employees of the Insured, who is a Civil Contractor, injures himself due to falling of a heavy object. The injured employee was taken to hospital and was advised rest for 1 month. The Insured incurs liability as below:
- Salary for the one month – USD 500
- Medical Expenses – USD 1,500
The above claim is admissible in full (Medical Expenses up to the agreed limit). If following the hospitalization, the employee is certified disabled, then the disability compensation as per the applicable law is also payable.