WORKMEN’S COMPENSATION (EMPLOYERS’ LIABILITY)
An employer may become legally liable for occupational injury, disease or death to an employee. The Workmen’s Compensation Act of 1963 (Act 174) as amended by PNDC 187 (of 1987) makes it mandatory for all employers in Ghana to compensate their Employees for occupational injuries, disease or death. There is the need to pass the risk onto an insurer by taking an Employers’ Liability Insurance Policy.
When the employer is legally liable to pay damages to an injured employee or the representative of an employee fatally injured, he can claim against his employer’s Liability policy which will provide him with exactly the amount that has to be paid.
In addition, the policy will pay certain expenses by way of legal costs for defending a claim or medical bills where an injured workman has been medically examined. To enable us rate this risk accordingly, we shall require the estimated Annual Salaries for the classes of employees to be insured.
A range of rates is applied. An additional rate of 33.33% is charged to provide cover for medical Expenses.