Employer's Liability Insurance

Aperçu

Every workplace carries the risk that someone will be hurt doing their job: a welder inhaling fumes, a mason falling from scaffolding, a machine operator losing a finger. When that happens, who pays, and how much? Employer's liability insurance answers the first question, and Nigeria's Employees' Compensation Act answers the second. Together they decide whether an injured worker, or the family of one who dies, walks away with nothing or with a fair settlement.

In this lesson you will learn what employer's liability insurance is for and the legal duty it protects, why it is compulsory, and the two routes by which an injured Nigerian worker is compensated. You will meet the Employees' Compensation Act 2010 and the fund that runs it, work out the benefits payable when an employee is disabled or killed, and learn exactly which perils the cover responds to. These are marks WAEC awards every year.

Objectifs

  1. Explain the purpose of employer's liability insurance and the legal duty it supports
  2. Describe employees compensation and state the benefits payable
  3. Identify the perils covered by an employer's liability policy
  4. Explain the statutory basis of employees compensation in Nigeria

Note de cours

Musa welds steel on a building site in Lagos. One morning a poorly guarded grinding wheel shatters and a fragment blinds him in one eye. He can no longer do the only work he knows. His employer is a small contractor with little cash to spare. Does Musa simply bear the loss himself? He does not, and the reason is that the law places a duty on his employer to keep him safe, backs that duty with a compulsory insurance, and provides a statutory fund that pays him even if the contractor cannot. Understand how those three pieces fit together and you understand this entire topic.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Employer's Liability Insurance. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  1. The main purpose of employer's liability insurance is to cover the: A. Employer's own medical bills when the employer is injured B. Employer's legal liability to compensate an employee injured in the course of employment C. Loss of profit while an injured employee is off work D. Cost of replacing damaged machinery Answer: B
  2. Which law currently governs the compensation of injured workers in Nigeria? A. The Workmen's Compensation Act B. The Insurance Act 2003 C. The Employees' Compensation Act 2010 D. The Pension Reform Act 2004 Answer: C
  3. The fund that administers employees compensation in Nigeria is the: A. National Insurance Commission (NAICOM) B. Nigerian Social Insurance Trust Fund (NSITF) C. National Pension Commission (PenCom) D. Chartered Insurance Institute of Nigeria (CIIN) Answer: B
  4. Under the Employees' Compensation Act, the employer's contribution to the fund is: A. 1% of total annual payroll B. 5% of total annual payroll C. 6.5% of the employee's basic salary D. 10% of the employee's basic salary Answer: A
  5. A deceased worker earned ₦150,000 a month and left a spouse and three children wholly dependent on him. The monthly death benefit is 90% of remuneration. How much is payable each month? A. ₦90,000 B. ₦127,500 C. ₦135,000 D. ₦150,000 Answer: C

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Questions précédentes

Vous vous demandez à quoi ressemblent les questions passées sur ce sujet ? Voici plusieurs questions sur Employer's Liability Insurance des années précédentes.

WAEC SSCE - Insurance - 2015

Question 1 Rapport

(a)Define the term employer's liability in insurance.

(b)State three benefits that can be covered under employer's liability.

(c)State three causes of business interruption.

Voir la réponse