The Employer Liability Insurance is mandatory under the Insurance Act, 2021 (Act1061), as well as the Workmen’s Compensation Act, which provides indemnity in respect of an employer’s legal liability to the employees for occupational injury or death in the course of their employment.
Mr Irwin Cofie, Deputy Head of Marketing, SIC Insurance PLC explained that; “Every employer with employees in excess of 15 must-have Employers Liability cover insofar as the employee is in the purview of work and suffers injury or death, must be appropriately compensated.
“It is compulsory for employers with 15 or more employees to insure their liability under the Insurance Act which indemnifies an employer against legal liability for injuries to employees resulting from accidents occurring in the course of their employment”.
Mr Cofie was speaking at the Tema Office of the Ghana News Agency as part of its “End of Month Stakeholder Engagement and Workers Appreciation Day” – an initiative that creates a platform for state and non-state actors to address national issues.
The monthly engagement also serves as a motivational mechanism to recognize the editorial contribution of reporters towards national development in general and the growth and promotion of the Tema GNA as the industrial news hub.
Mr Cofie explained that the Workmen’s Compensation Act made it compulsory for employers of labour to set aside funds to compensate any worker who may sustain an injury at the workplace whether or not the Employer is to blame.
However, he expressed concern that the Public Liability Insurance compliance level in the country was not good as some public entities did not have insurance for their workers, and called on them to adhere to the Insurance Act.
According to him, advocating strict compliance with regards to Property Insurance and the patronage of the Workmen’s Compensation Insurance or Employers Liability was non-negotiable as the cost implications for employers were often severe.
He said the definition of a worker under the Act had been expanded to include; any person who received salary or wages except an outworker, a tributary, and a family member of the employer living with the latter or where the Law prohibited as a worker.
Besides compensation for bodily injury, there was a provision for payment of Medical Expenses as a result of the injury. An employer may also choose to insure his liability under the Act and in addition, could extend his liability to cover claims under Common Law.
Mr Francis Ameyibor, Ghana News Agency Tema Regional Manager called on various workers’ unions to ensure that employers adhered to the Insurance Act in respect to the protection of workers against occupational hazards.
“Worker Unions and Associations must check whatever insurance covers or protection under which workers operate, we must begin to holistically protect the interest of workers,” Mr Ameyibor noted.