5 Frequently Asked Questions about Payment of Indemnity Benefits

1.     Q: When and how long can an employee collect indemnity benefits? 
 A:   As long as the employee is medically unable to work, with limitations in some states on the maximum number of weeks.
2.     Q:  The employee is in jail (not related to the workers comp claim), can s/he still collect indemnity benefits? 
 A:   It varies by jurisdiction, but in most cases if the employee can still receive the necessary medical treatment to recover from his injury, he can still collect benefits while in jail until he is medically able to return to work. (WCxKit)
3.     Q:  The employee is taking his/her family on vacation, can s/he do that while drawing indemnity benefits? 
 A:   As long as the employee does not engage in any activity on vacation that will interfere with his medical recovery, and as long as the employee will not miss any medical appointments, then he can go on vacation in most jurisdictions.
4.     Q:   The employee is out of the country, can s/he still collect indemnity benefits?
 A:   If the employee is not treating for his/her medical condition, the workers comp adjuster should take the necessary steps to suspend temporary indemnity benefits until the employee returns to the country and resumes medical care. WCxKit If the employee has already reached maximum medical improvement, the permanent indemnity benefits would continue in most jurisdictions while the employee is out of the country.
5.     Q: The employee is working another job while collecting indemnity benefits from us, can s/he do that? 
 A:    No. If the employee is able to do similar work for another employer, s/he is no longer medically unable to work WCxKit and temporary indemnity benefits should cease immediately. A possible exception to this would be for PPD benefits where the employee is unable to resume a manual labor position with your company, but locates less strenuous employment with another company. 

  Author Rebecca Shafer, J.D., President, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing.  Contact: Info@ReduceYourWorkersComp.com  or 860-553-6604.  
WC Calculator:  http://www.LowerWC.com/calculator.php
TD Calculator:  http://www.LowerWC.com/transitional-duty-cost-calculator.php 

Do not use this information without independent verification. ALL STATE LAWS VARY AND CHANGE; consult with your insurance broker or agent about specific workers' comp issues.
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