Insurance WAEC

Employer's Liability Insurance

Bayani Gaba-gaba

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.

Manufura

  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

Taswirar tunani

An zana wannan batu don ka ga yadda ra'ayoyi ke hadewa.

Katunan tunawa

Gwaji mai sauri kan abin da ake jarraba a wannan batu.

Takardar Darasi

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.

Nazarin Darasi

Barka da kammala darasi akan Employer's Liability Insurance. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  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

Littattafan da ake ba da shawarar karantawa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Sunaƙa: Thirteenth edition
Mai wallafa: Pearson
Shekara: 2016
ISBN: 978-0-13-408257-8
Bayanan bayanin.: 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
Sunaƙa: Tenth edition
Mai wallafa: Wiley
Shekara: 2008
ISBN: 978-0-470-08753-4
Bayanan bayanin.: 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
Sunaƙa: Second edition
Mai wallafa: Himalaya Publishing House
Shekara: 2017
ISBN: 978-93-5097-079-9
Bayanan bayanin.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Tambayoyin Sake Nazari

Kana ka na mamaki yadda tambayoyin baya na wannan batu suke? Ga wasu tambayoyi da suka shafi Employer's Liability Insurance daga shekarun baya.

WAEC SSCE - Insurance - 2015

Tambaya 1 Rahoto

(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.

Bayanin Amsa

(a) Employer's liability insurance

Employer's liability insurance is a class of insurance that covers an employer against legal liability to pay compensation for death, bodily injury, disease or ill-health suffered by his employees in the course of and arising out of their employment. It protects the employer from claims brought by workers who are injured or fall sick because of their work.

(b) Three benefits that can be covered under employer's liability

  1. Compensation for death or permanent disability of an employee arising from a work accident.
  2. Medical, hospital and treatment expenses incurred by the injured employee.
  3. Loss of earnings or wages during the period the employee is unable to work, and legal costs of defending claims.

(c) Three causes of business interruption

  1. Fire or explosion that destroys premises, plant or stock, forcing operations to stop.
  2. Breakdown of essential machinery or equipment.
  3. Natural perils such as flood, storm or earthquake damaging the business premises.
  4. Loss of power supply or of key raw materials halting production.
Duba Amsa