Many of us associate labour day with a holiday and the start of May, but it is much more than that. It is a day to celebrate the amazing work done by employees/ workers. Each company is lucky to have its employees and volunteers that help them grow and meet its goals.
Some businesses run on volunteers, such as NGOs. Volunteers can face risks during work as any other employees. Unfortunately, the labour department doesn’t consider volunteers as employees. This means the same insurance will not cover them.
Hence, companies purchase personal accident insurance to deal with a volunteer injury. The case study will explain how personal accident insurance was the best solution to a volunteer injury for an NGO company.
Client Background- NGO Event Company
Our client is an NGO company that organises events to raise money for various charities. The business mainly works on investments, donations, and a range of volunteers. Non-profit companies do not have the large funds to hire employees full-time and instead donate their funds to a good cause.
The business uses many volunteers to build and run the events. Recruiting volunteers can be risky for companies, as they will not be covered by employee compensation insurance. If they suffer any injury while working. The business will be liable to pay for all the medical bills out of their pocket and may even be sued by the injured party.
The work risks that could lead to volunteer injuries include climbing ladders, electrical instalments, building stages, heavy lifting, and outdoor risks. These risks could also cost the NGO business heavily.
Client problem-Volunteer Injury
The business recruited around ten volunteers to help set up the set for an outdoor event. The duties included heavy lifting of material, assembling stage and equipment adjustment. Of course, these duties all have their own risk. The business did think of the risks and provided each volunteer with the proper safety equipment.
Unfortunately, the safety gear was not enough in this case. There was an injury that was entirely out of their control with an awful outcome. The injury occurred when a part of the set (speaker) fell from a height on the volunteer’s leg.
In result, the volunteer’s leg was broken and required immediate surgery. The business is liable to pay for the medical bills and provide compensation costs to the injured volunteer. If they do not comply, the volunteer has the right to sue the business for medical and compensation costs.
Unfortunately, as mentioned, the volunteer will not be covered by the employee compensation insurance. Hence the business will have to pay out of their pockets, which they may not be able to afford due to limited funds.
How Personal Accident Insurance Covered the Volunteer Injury?
Fortunately, the business purchased personal accident insurance for each volunteer for the day they were on duty. Personal accident insurance will cover most accidents that cause bodily injury, partial disability, permanent total disability, and accidental death.
Therefore, the insurance covered the cost of medical and recovery. It is the perfect insurance for NGOs as it is affordable and will cover up to HKD 200,000 for each volunteer. Additionally, the business can purchase the insurance for selected dates, short term, or long term. Further, the insurance will compensate the volunteer if they are temporarily or permanently disabled.
Volunteer injury costs reimbursed by personal accident insurance:
- Ambulance: HKD 180
- Cost Of medical Surgery: HKD 70,000
- Cost of treatment (physiotherapy sessions): HKD 10,000 (10 sessions)
Total cost: HKD 80,180
Personal accident insurance may be the right insurance for many businesses that deal with short term work and volunteers. Volunteer injuries can happen at any point, however safe a business is. The insurance can also be bought personally to protect yourself from any type of accident at any location.
It is one of the easiest insurances to purchase at a reasonable cost. One doesn’t need to provide any medical reports and a minimal number of documents need to be provided. Therefore, the insurance is perfect accident protection with less effort and less payment.
Finally, personal accident insurance provides the policyholder peace of mind when things do go wrong. You shouldn’t be worrying about costs when looking for medical treatment. Additionally, the insurance has an easier claim process than most medical insurances (might depend on the insurer).