Fully insure your employees for occupational accidents
You have already insured your employees for the financial consequences of occupational accidents with the legally compulsory Occupational Accidents Insurance. The legally compulsory occupational accidents insurance will restrict benefits to a certain level of income, irrespective of your employees’ effective salary. In case an employee is temporarily unfit for work, for a month for example, the benefit in 2008 will be limited to € 2683.05 euros gross. The collective insurance for Occupational Accidents - Complementary Act means you can also insure the income above the capped income.
How does the Securex collective insurance Complementary Act work?
You can choose from two calculation formulas:
- Compensation equal to that provided for in the Act on Occupational Accidents (basic act).
- Compensation based on a multiple of the annual wages.
Below is an example in figures for 2008 of the equivalent calculation method. Example: One of your employees (40 years) is medically unfit for work. He earns 50,000 euros on an annual basis. According to the Act on occupational accidents, the benefit is calculated based on the legal maximum income of 35,099.83 euros gross per year.
Is he temporarily unfit for work (e.g., for a period of 31 days)?
- Then the legal protection under the Occupational Accidents Insurance amounts to a maximum of 2683.05 euros a month.
(€ 35,099.83 x 90%) / 365 = € 86.55 x 31 days = € 2,683.05 - The monthly benefit under the Securex Collective Occupational Accidents Insurance plan is:
(€ 50,000 – € 35,099.83) x 90% / 365 = € 36.74 x 31 days = € 1,138.94
This amount will be paid out on top of the legal benefit and thus brings the total for your employee to 3,821.99 euros a month for 31 days of unfitness for work.
Is the employee permanently unfit for work?
- Is your employee permanently unfit for work? Then the legal protection under the Occupational Accidents Insurance amounts to a maximum of 35,099.83 euros a year (gross).
€ 35,099.83 x 100% = € 35,099.83
This amount will be paid out monthly or quarterly.
- The Securex collective insurance Complementary Act will pay the difference between an employee's effective wages and the amount received under the occupational accidents insurance. Meaning (€ 50,000 – € 35,099.83) x 100% = € 14,900.17 euro.
This amount will be immediately paid out in capital. For an employee aged 40 this means: 247,649.77 euros (14,900.17 euros x age coefficient 16,6206).
Did the employee die as a result of the occupational accident?
- Under the Occupational Accidents insurance, the surviving spouse receives an annual benefit of 10,529.95 euros (=30% of the legal maximum, i.e., 35,099.83 euros; This amount will not be paid out as capital but in monthly or quarterly amounts.
- Under the collective insurance Complementary Act the surviving spouse receives an annuity 4,470.05 euros.
Meaning (€ 50,000 – € 35,099.83) x 30% = € 4,470.05 euros.
This amount will be immediately paid out in capital. For a widow aged 40 this means: 77,924.91 euros (4470.05 x age coefficient 16.6206).
Did you opt in favour of the annual wages calculation method? Then there are different possibilities. We will gladly review the details with you.
