Term Of The Day – Indemnity Benefits
The term refers to the amount paid out due to a loss or damage. In Workers Comp, Indemnity Benefits pay an employee for lost wages due to an on the job injury or illness. It covers anything that prevents a worker from returning to work either temporarily or permanently.
In the past, indemnity benefits were responsible for approximately 70% of total benefits paid on Wokrers Compensation claims. Medical benefits now are resposbile for 70% of the total benefits.