While most mining companies have adopted a “Zero Injury” policy and have installed good safety
and health operational systems, employee injuries still occur even outside the company premises.
Personal Accident Insurance provides cover in the unfortunate event that an employee is injured,
permanently disabled or dies due to covered accidental causes on a 24-hour worldwide basis
whether they are on duty or at home.
The main benefits under this insurance policy are:
a. Death Benefit
The policy pays out the tax-free insured limit which is usually a multiple of the current
gross earnings at the time of death or a certain stated limit.
For example, an employee with gross earnings of USD2,000 a month dies due to a
covered incident, if the policy has a 3 years current earnings limit, their estate or
nominated beneficiaries would get USD72,000. If however the policy is a stated benefit
policy with a limit of USD50,000, their estate or nominated beneficiaries would only get
the limit stated.
The payment of the death benefit will be subject to the structure of the policy as some
will pay via the mining company to the beneficiaries or payment direct to beneficiaries
via the Master of High Court once the estate of the deceased is registered.
b. Permanent Disability Benefit
The policy pays out a percentage (%) of the death benefit where an employee becomes
permanently disabled due to the occurrence of an insured event. For example, if an
employee is injured at work and loses some fingers and the medical report determines
that they are 10% disabled, the policy will pay out 10% of your death benefit.
c. Temporary Total Disablement Benefit
The policy pays out weekly earnings for an injured employee who is recovering at home
usually for a minimum of 52 weeks. This enables the mining company to continue paying
their employee whilst recovering but more importantly to hire a temporary employee to
continue with their duties.
d. Medical Expenses Shortfall Benefit
The policy provides cover for medical expenses incurred due to the insured events. For
example, if a road accident occurs and the employee is hospitalised the policy will pay
for any medical expenses shortfalls (if they have an underlying medical aid) or fully (if
they have no medical aid) up to the limit insured.
Talk to us today about Personal Accident Insurance cover for your mining operation.
