Workmen’s compensation cover is prescribed by the Compensation for Occupational Injuries and Diseases Act 130of 1993 (COIDA). This insurance covers accidents that arise out of and during employment resulting in personal injury or illness; occupational diseases contracted in the workplace; and fatalities resulting from an accident while on duty.
Employers within the construction sector can obtain cover through the Federated Employers Mutual Assurance Company (FEM), which is one of only two private companies licensed by the Department of Labour, to provide COIDA cover outside of the Compensation Fund. FEM is the only private company that focuses solely on cover for the construction sector.
FEM was established as a mutual insurer in 1936 to provide occupational injury insurance for the construction industry after legislation forced all industrial employers to insure their workers against occupational accidents or injuries.
The introduction of the Workers’ Compensation Act of 1941 (now COIDA) saw FEM being granted a licence to continue to transact workmen’s compensation insurance for the construction industry. FEM operates in line with COIDA.
FEM currently provides cover to more than 6000 construction companies and over 300 000 construction employees.
FEM specialises in providing COIDA cover to the construction sector and has a track-record of more than 85 years. Good health and safety practices are rewarded through merit rebates once a year, which are incentives paid back to the policyholder for a good safety track record.
Policyholders with a claims experience of ten percent or less of their total annual premium can receive up to 50 percent of their premium paid back to them, subject to certain terms and conditions. FEM also issues Letters of Good Standing.
FEM provides easy access to online assessments. The company has embraced technology which allows its clients to complete their documentation online to speed up the Return of Earnings process.
FEM also has on online claims submission facility that provides ease of access in reporting claims and accessing information on the status of claims.
Premiums are based on the total amount of wages paid per annum. Depending on the nature of the business, a predetermined percentage – as set by the Compensation Commissioner – is applied to the annual wages, which will determine the premium.
On payment of the premium, a Letter of Good Standing is issued to a policyholder, which enables them s to perform their work on a construction site. The Letter is valid for up to 15 months subject to terms and conditions.
FEM works closely with an array of medical service providers, including a vast network of private hospitals, to ensure employees receive the best possible medical care after any occupational injury.
The cover includes the immediate treatment of an injury, the transport to and from a hospital, as well as follow up treatment and ongoing care to ensure the employee is fit and ready to resume their duties.
Personalised claims services are provided by FEM’s team of administrators to ensure that the administration burden is taken off the clients’ shoulders. As experts in the field, FEM will guide its clients through the claims procedure leaving them the time to fulfil their core functions.
FEM is committed to making a positive contribution to South Africa. The company has a structured CSI programme covering areas such as housing, health and social services and education.
In addition, in 2016 FEM committed R750 million to set up the FEM Education Foundation to contribute towards education and leadership development.
The company has, to date, partnered with the Make a Difference Leadership Foundation the Columba Leadership Trust, Partners for Possibility, Funda Wande and SmartStart to provide much-needed funding towards education and development of leadership skills among young South Africans.
The company also has a pensioner beneficiary assistance program that is aimed at improving the quality of lives of severely injured employees and their dependents.
The Federated Employers Mutual Assurance Company (RF) (Pty) Ltd is a licenced insurer.
