Definitions for "Indemnity benefits"
Contractual benefits that are based on the actual amount of financial loss. In traditional medical expense insurance plans, insureds are reimbursed for the covered medical expenses they incur up to a maximum dollar amount. Also known as reimbursement benefits. TO TOP
Compensation paid to the workers' compensation claimants for non-medical loss resulting from an injury or illness. Six types of award are permitted by the WCL: • temporary total disability benefits (for periods of total wage loss); • temporary partial disability benefits (for periods of partial wage loss); • facial disfigurement awards (at judge's discretion but subject to a maximum, for cosmetic facial disfigurement resulting from the accident or exposure); • permanent partial disability benefits (for loss if physical function or for periods of partial wage loss after a claimant has been classified as having a permanent partial disability); • permanent total disability benefits (for loss of wage earning capacity after a claimant has been classified as having a permanent total disability); and • death benefits (compensation benefits awarded to spouse, children or under certain circumstances, other family members following a work-related death).
Established dollar allowances for covered services. Payments are made toward the charge, not necessarily as payment in full.