SA Affordable Housing March / April 2018 // Issue: 69 | Page 8

ASSOCIATIONS
Workers’ compensation
simplified
Worker’s compensation, or what is commonly referred to as COIDA cover,
is a compulsory assurance that is taken out by a company to cover its
employees if they are injured or contract an illness while performing their
daily work duties.
By the Federated Employer’s Mutual Assurance Company
WHAT IS COVERED BY THIS INSURANCE?
Worker’s compensation cover is prescribed by the
Compensation for Occupational Injuries and Diseases Act
(COIDA) 130 /1993. Accidents that arise out of and during
employment resulting in personal injury or illness;
occupational diseases contracted in the workplace; and
fatalities because of an accident that happens on duty are
typically covered by this assurance.
WHERE CAN I GET THIS ASSURANCE FROM?
As an employer within the construction sector, you can
get cover through the Federated Employer’s Mutual
Assurance Company (FEM). FEM is only one of two private
companies, licensed by the Department of Labour, to
provide COIDA cover outside of the Compensation Fund,
and we are the only company that provides cover for the
construction sector.
WHO IS FEM?
FEM was established as a mutual insurer in 1936, to
provide more affordable assurance for the construction
industry, after new legislation forced all industrial
employers to insure their workers against accident or
injury. The introduction of the Workers’ Compensation Act
of 1941 saw FEM being granted a license to continue to
transact workers‘ compensation insurance for the
construction industry. FEM operates in line with COIDA.
WHY SHOULD I JOIN FEM?
We are specialists in providing COIDA cover to the
construction sector with a track-record of more than 80
years. We reward good health and safety practices through
merit rebates. A merit rebate is an incentive paid back to
the policyholder for a good safety track record.
Policyholders with a claims experience of 10% or less of
their total annual premium can get up to 50% of their
premium paid back to them, subject to certain terms and
conditions. We also issue Letters of Good Standing.
We provide easy access to online assessments. We have
embraced technology which allows you to complete your
documentation online, which will speed up the Return of
Earnings process.
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MARCH - APRIL 2018
AFFORDABLE
SA HOUSING
Premiums are based on the total amount of wages you pay
each year. Depending on the nature of your business, a
predetermined percentage, as set by the Compensation
Commissioner, is applied to your annual wages which will
determine your premium due. On payment of your
premium, you will receive a ‘Letter of Good Standing’
which will allow you access to construction sites to
perform your work. Letters are valid up to 15 months and
are subject to terms and conditions.
WHERE DO MY EMPLOYEES GO FOR TREATMENT?
FEM works closely with an array of service providers
including a vast network of private hospitals to ensure
your employee receives the best possible medical care for
any injury. The cover provided not only includes the
immediate treatment of an injury but also includes the
transport to and from hospitals as well as follow up
treatment, and ongoing care to ensure the employee is fit
and ready to resume their duties.
WHO DOES THE ADMINISTRATION OF CLAIMS?
Personalised claims services by our team of specialised
administrators ensure that the administration burden is
taken off your shoulders. We are the experts in our field
and will guide you through the claims procedure leaving
you the time to fulfil your core functions.
WHAT IS FEM’S CORPORATE SOCIAL
RESPONSIBILITY?
As a company we are committed to making a positive
contribution to South Africa. We have a structured CSI
programme that covers areas such as housing, health
and social services and education. In addition to our
CSI programme, in 2016 FEM
committed R750-million to set up
the FEM Education Foundation to
contribute towards education and
leadership development. We have
to date partnered with the Make a
Difference Leadership Foundation
and the Columba Leadership Trust,
providing much-needed funding towards education and
developing leadership skills among young South Africans.
HOW DOES FEM USE TECHNOLOGY?
HOW ARE PREMIUMS CALCULATED?