Term Of The Day – Indemnity Claim
An Indemnity Claim is a part of insurance contracts in which the insurer agrees to cover the cost of losses suffered by the insured. These claims included medical payments and payment for lost time by the injured worker, including lost weekly wages and permanency.
Most insurance contracts use Indemnity Claims, except personal accident and life insurance policies. In most of the claims, the injured party will have claimed more than three days of total or partial disability.
NCCI says that Temporary Total Disability indemnity benefits are provided to injured workers to replace wages, and other specified costs like vocational rehab, while the injured party recovers from a work-related injury or illness and is not able to work. The claim lasts the number of compensated days of lost wages. The current average TTD duration is 125 days.
This part of a Workers Comp claim is much more controllable in most instances than the medical portion of the claim. Twenty years ago, the medical portion of a WC claim was less than the indemnity claim. Now the indemnity benefits are 40% or less of a claim’s total value. The reduction in the % comes from medical inflation,
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