This is the most important section of ...
WORKMEN COMPENSATION INSURANCE
This is the most important section of accident business and should be offered to any employer who insures with us. Like motor business, the business is tariff controlled and rates are fixed.
The policy grants two separate covers, workmen’s compensations for benefits as laid down by law and in addition for the employer against claim by employees at common law, this is known as Employers Liability. A worker when injured has choice of taking the compensation, which is laid down by the Government Ordinance. In this event, there is little fuse if the injury is genuine and the benefits are fixed so it is a simple matter to settle a death, disability or temporary injury claim. The workers, if he considers he has been injured as a result of negligence of his employer or by the negligence of a fellow employee, may elect to forego any compensation under the Ordinance and to sue his employer at law for negligence.
The worker may elect to proceed with a common law claim because he may feel that he will receive a larger amount of compensation than under the W.C Ordinance. The W.C Ordinance lays a minimum and maximum limit of compensation but a highly paid employee may feel he will do better by making a common law claim. In doing so, he will have to prove negligence to the satisfaction of the court in the usual way and will incure legal costs. Such common law claims are very rare but could be very expensive if successful because the employer’s liability is unlimited.
Larger claims are possible mainly from the expatriate community and highly paid local staff. For this reason many employers do not insure highly paid employees under the W.C policy but take out Group Personal Accident policies for such employees with large benefits. This does not however release the employer from his liability at common law despite receiving the proceeds of a P.A policy.
It is a requirement that all manual workers must fall within the Ordinance.
Events Insured Against
Personal injury by accident or disease arising out of and in the course of his employment by the Insured in the business and if the Insured shall be liable to pay compensation for such injury either under Workmen’s Compensation Ordinance or at common law.
The Ordinance is entitled:- Workmen’s Compensation (Amendment) Act 1957 Nigeria: Workmen compensation Decree No. 17, of 1987
The workmen compensation rates are tariffed. See Nigeria’s workmen compensation tariff.