What is Workers Compensation Insurance in Nigeria

What is Workers Compensation Insurance in Nigeria

Before we dive into workers’ compensation insurance, let’s talk about the workforce. The staff is the force that makes any business operational. It means that the company keeps running.

In return, workers enjoy compensation. These compensations are in the form of salary, a healthy work setting and other benefits.

In the process of keeping the business going, accidents happen. These events may lead to injuries or even death. If it happens in a workplace, the law demands that the employers and employees must be responsible.

To ensure that the financial impact of this burden does not take a drastic toll on the business, most employers acquire workers’ compensation insurance.

Workers’ compensation insurance offers a fair method of adequate compensation for employees. They receive compensation for any injury, death, disease or disability, which happens in the course of employment.

The Employer agrees to pay all compensation linked to the insured with no regard to liability.

In Nigeria, the Employee Compensation Act guides the worker’s compensation insurance policy. This policy refers to all private and public sectors throughout the country.

What does the Worker’s Compensation Insurance plan to cover?

Workers’ compensation coverage is based on the Employer’s payroll and the nature of the employee’s role. Besides, the Insurance policy covers the employee even if the person contributed to the harm. The standard benefits of this insurance plan for a work-injured employee includes:

1. Medical expenses for the injury suffered.
2. Possible legal costs if the employee sues the business for negligence which led to the injury.
3. The beneficiary of the dead worker will receive death benefits.
4. Employees who temporarily or permanently suffer disabilities get repayment of wages.
5. Covers new skill acquisition costs for employees who may not go back to their routine work due to the injuries suffered.

How does one receive the compensation when an incident occurs?

Nigeria’s Workers Compensation Act lists the conditions to access compensation. The person has to do the following:

1. The employee must tell the Employer of the concern within 14 days of the occurrence. The information must include the name of the employee, the time and place of the event. It should also include the type and cause of the disease or injury if known. Failure to provide the information can mean loss of claim.
2. The Employer is to report this information to the NSITF Management Board within seven days of getting the employee’s notification. The NSITF will apply the Act and the Fund.
3. If the employee dies in the accident, the employer is to report this quickly. Also, the Employer is to pay the employee’s beneficiaries. Payment is on a scale running from 30%- 90% monthly of the employee’s remuneration.

The insurer will make sure the employee gets the benefits, as the law requires. In fact, according to the law, the Act applies to all professionals in public and private areas in Nigeria.

The idea is fundamental. This is because it provides a covering and saves workers who have suffered from diseases and injuries from accidents in the workplace. All workers should fully understand how the insurance policy works so they can take advantage of it.

See Also:

• Employer’s Liability Insurance in Nigeria Explained
• How To Become An Insurance Broker
• 4 Major Types Of Claims Settlement