Workers’ Compensation Insurance Benefit: A Win-Win Solution for Employer and Employee

Posted by on Jan 22, 2014 in Personal Injury | 0 comments

Employees in the U.S. who sustain work-related injuries or develop an illness due to exposure to dangerous chemicals at work, are entitled to immediate financial assistance that will cover tier medical treatment and which will cushion them from the effect of a possible financial crises due to loss of capacity to earn and the inability to immediately go back to work. Such right is stipulated in the Workers’ Compensation benefit, a law that was passed in 1908 for the very intention of providing the much financial assistance needed by injured workers. Before the passing of this law, workers needed to sue their employers just to avail of the needed compensation. Besides damaging employee and employer relationship, the lawsuits were often won by employers, who always resorted to any of the following arguments:

  • Assumption of Risk – which states that due to the danger associated with the job, possibility of injury should be accepted
  • The Fellow Worker Rule – this argument was used if the cause of the injury was a fellow worker, saving the employer from any responsibility
  • Contributory Negligence – an argument that holds the injured worker himself/herself as the cause of the accident due to his/her negligence or carelessness

If ever there were instances wherein the employee won the case, the compensation he/she was awarded with was either delayed or much less than what he/she actually expected and deserved. Between 1911 and 1920, majority of the states implemented the workers’ compensation benefits law with certain changes to align it to the laws in their own states. Filing for injury benefits through workers’ compensation ensured employees of financial assistance as this insurance benefit was not dependent on the financial capability of any employer. One item the benefit stated, however, is the employer’s freedom from any and further financial and/or legal obligations once the benefit has been awarded.

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