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Compensation Claim

Definition - What does Compensation Claim mean?

Compensation claim (related to injury and illness at workplace) is the prerogative demanded by an employee who was injured, disabled or suffering from illness in connection with work. Payment of such claims are required and regulated by local laws. Employees are entitled to make such compensation claims for the pain and suffering he or she has endured as a result. In most of the cases, the compensations are cash benefits and/or medical care.

Safeopedia explains Compensation Claim

Compensation claim by workers is governed by local laws. Most features of these laws are common and consistent. An affected employee is entitled to receive certain benefits when he or she suffers from injury or occupational illness arising at work during employment. Such benefits may include cash and/or medical care to the employee or his/her family in case of his/her death.

Such compensations are aimed to rehabilitate the injured or sick employee without unduly impairing the employer's business as he or she loses the common law right to take legal action against the employer. However, he /she may still sue third parties who has some contributions to the work injury or illness. These compensations are tax free and may be paid monthly, periodically or at once. The compensation disputes are more administrative, rather than judicial or tribunal. Generally, the courts ease the standard rules of procedures, evidences, and conflict of laws if there is any.

This definition was written in the context of Worplace Related Injury and Illness

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