04 Jul 4 Ways Companies Can Lose Wiba Insurance Cover In Kenya
Did you know that your company can lose its Work Injury Benefits Act (WIBA) cover against employee claims despite paying the requisite premiums? Just like any other type of insurance, WIBA Insurance has conditions that can render it invalid.
Employers stand to lose the most if the WIBA cover is lost because they are likely to be forced by the law to assume the liabilities work injuries can bring about. Here are some situations that can invalidate a company’s WIBA cover.
Non-Disclosure of Risks
Insurance underwriters rely on the disclosed risks to calculate premiums for each company. If your company fails to disclose some of the risks inherent in the premises and they end up causing work place injuries, your employers liability insurance may be rendered invalid.
For instance, failure to deal with a clear structural defect on your premises leading to a collapse that results in the death or injury of employees may fall outside the definition of accidental injury.
While the insurance company can legally get away with not paying the claim, your company will be held responsible for the damages and will remain liable under WIBA to compensate all injured employees.
Material Misstatement of Facts
When filling in insurance forms, some company representatives may be tempted to misstate facts about the organization. If your company misstates something like the number of employees you have in order to save on premiums, your company could lose WIBA insurance if the insurance company discovers this anomaly.
These situations are usually uncovered once a claim is lodged and the insurance company sends in investigators to verify all facts related to the case. While you can easily get away with material misstatement when buying insurance, it is a lot harder to get away with it when lodging claims.
Poor Enforcement of Safety Protocols
Poor enforcement of workplace safety protocols may also cause your company to lose its WIBA insurance. Just like in the case of material misstatement of facts, your company may be found to be negligent if it fails to enforce health and safety protocols, and such failure leads to injuries at the workplace.
The point here is that your company must remain vigilant when it comes to workplace safety even after transferring WIBA related risks to a third party.
Proven Sabotage leading to Injury
Your company can also lose its WIBA insurance Kenya if your insurer discovers that a specific case or series of cases were not accidental, but were deliberate.
Disaggreements between employees and supervisors can lead to acts of sabotage that can result in the injury or death of some employees. In this case, the insurance company will not be liable to pay for damages arising from such acts.
Paying your premiums do not in any way waive your responsibilities to ensure your workers safety. Any lapses in the enforcement of health and safety protocols can result in loss of your WIBA cover.