Employer Liability Insurance

The Federal Government of Nigeria promulgated the Workmen’s Compensation Decree 17 in 1987 imposing a strict liability on employers of more than 10 workmen, for the death or injury to their employee which may arise in the cause of employment. A schedule of benefits payable in each case is entrenched in the Decree, employers are liable to pay 42 months earnings for death and 54 months earnings for permanent disability. Their (employers) liability for medical expenses is however unlimited. In effect provision cannot be adequately made for any unforeseen circumstance in the company’s budget particularly for the unlimited medical expenses liability. The liability is not restricted to accident only but includes diseases contacted whilst in employment. Though the degree of exposure varies with occupation, no company can be sure that an accident is totally impossible. Therefore, it is prudent to make provision for this statutorily imposed responsibility.