Workers' Compensation Principle

Definition

Health Economics

  • This is a principle underlying most systems of workers' compensation. It has two elements: one is 'no fault', so that negligence is not required to be proved in order for a worker to receive compensation for, say, an injury incurred at work, nor can the worker be held responsible for contributory negligence, whereby they may have brought the unwanted event upon themselves. However, the injury is required to be 'work-related'. The other element is that the benefits provided under workers' compensation are the employer's and the insurer's only liability to the employee for workplace injury.
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