For most small and medium scale enterprises, insuring employees was a novelty. It was discretional till the enactment of the Insurance Act 2016, which comes into effect this 2017, mandates all employers to insure employees as long as they exceed five in number.
Section 22 of the Act (Employer’s liability Insurance) states: “An employer who employs more than five persons shall take out an employer’s liability insurance in respect of the employees.”
According to Google, employer’s liability insurance protects employers against the cost of compensation claims arising from employee illness or injury, sustained as a result of their work for you. It is a legal requirement if your business employs one or more people.
Investopedia states that an employer’s liability insurance can be packaged with workers compensation insurance to further protect companies against the costs associated with workplace injuries, illnesses and deaths that aren’t covered under workers compensation. Adding that Employer’s liability insurance is also called “part 2” of a workers’ compensation policy.
Reliance Trust Insurance Corporation (Ritcorp) Sierra Leone Limited Underwriting Fire Accident Department Manager, Mohamed Mansaray explained the process and procedure in insuring employees.
He said, “all you need to do is to come to the office and seek a proposal form. The proposal form is like a questionnaire with questions about your workplace and employees,” also adding that a list of employees, their salary and medical scheme should be stated.
The Manager further pointed out that medical expense that would reflect on an accident victim’s insurance claim is determined by the amount spent by the companies on the employee.
With regards to claims he noted that the doctor had to give a certified discharge that the person is fit or had suffered a disability, adding that it is based on the percentage of disability that the claims received by the victim would be honoured, which is based on the individual salary.
Another interesting section of the Act is Section 23, which states, “all buildings above two storeys under construction shall be insured against public liability.”
The Act defines public liability as injury and death to members of the public; [or] damage to neigbouring properties as a result of excavation and falling objects.”
However the Act made it crystal clear that section 23 “shall not apply to employees of the contractor.”
By Ophaniel Gooding
Tuesday January 10, 2017