A typical Workmen’s Compensation policy covers:
- Weekly payments in place of wages
- Compensation for economic loss
- Reimbursement or payment of medical and like expenses
- Benefits payable to the dependents of workers killed during employment
Employees cannot claim for pain and suffering, and punitive damages for employer negligence.
Nigeria Workmen’s Insurance
In Nigeria, Workmen’s Compensation policy is usually taken by employers of labour and is one of the several policies legislated by law. Nigeria has a developing economy, this insurance is legislated by law to ensure the continual growth while protecting workers.
Workmen’s Insurance Fraud
Fraud is a problem which plagues workers' compensation systems in every country not just Nigeria. Billions of dollars being spent on unnecessary litigation, surveillance, legal fees, and settlements worldwide.
The most common fraud include:
- Offsite Injury. A worker get injured at home or any place except work, but claims they were hurt on the job so that their workers' compensation policy will cover the medical bills.
- Exaggerated injuries. A worker receives a relatively minor job injury, but lies about the magnitude of the injury in order to collect more workers' compensation money and stay away from work longer.
- False injuries. Workers fabricate an injury that never took place, and claim it for workers' compensation benefits.
- Old injury. A worker with an old injury that never quite healed claims it as a recent work injury in order to get medical expenses covered.