Employer's Liability Insurance

Gbogbo ọrọ náà

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.

Ebumnobi

  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

Akọmọ Ojú-ẹkọ

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.

Ayẹwo Ẹkọ

Ekele diri gi maka imecha ihe karịrị na Employer's Liability Insurance. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  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

Àwọn Ìwé Tó Dáa Láti Kà

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Ìkọ̀wé-àbáojú: Thirteenth edition
Onkọwe atẹjade: Pearson
Afọ: 2016
ISBN: 978-0-13-408257-8
Akọkọ ọrọ.: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Ìkọ̀wé-àbáojú: Tenth edition
Onkọwe atẹjade: Wiley
Afọ: 2008
ISBN: 978-0-470-08753-4
Akọkọ ọrọ.: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Ìkọ̀wé-àbáojú: Second edition
Onkọwe atẹjade: Himalaya Publishing House
Afọ: 2017
ISBN: 978-93-5097-079-9
Akọkọ ọrọ.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Àwọn Ìbéèrè Tó Ti Kọjá

Nna, you dey wonder how past questions for this topic be? Here be some questions about Employer's Liability Insurance from previous years.

WAEC SSCE - Insurance - 2015

Ajụjụ 1 Ripọtì

(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.

Wo Idahun