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Compulsory Insurance of the Liability of Employers towards their Employees On the 1st November 1997, the Employer's Liability Compulsory Insurance Law passed into force, together with the relative Regulations. What is covered by
the compulsory insurance?
By virtue of the provisions of this Law, all Employers are required to have in force an insurance cover for their legal liability for an accident or occupational disease that their employees may suffer in the course of their employment. The term "accident" includes personal injury or death and, for a legal liability to arise against the employer, he will have to be found guilty of negligence or in breach of a duty imposed by Statute. The cover envisaged under the Legislation extends to all Cypriot employees of the employer abroad, provided that they are permanently residing in Cyprus. The minimum liability for insurance provided by the Legislation is:
As these limits are minimum, every employer has the right, if this is considered reasonably necessary, to ask his Insurer to extend his cover over and above the statutory limits. This extension will naturally entail an increase in the premium payable. Who is considered an employer? The requirement for Insurance cover provided by the Legislation affects all persons who employ other persons for more than 8 hours per week and includes also foreign workers/domestic servants.
Registers that employers
are required to keep
The Legislation requires all employers to keep registers in connection with the number of their employees, the duties performed by each one of them and their gross earnings. "Gross Earnings" means the salary/wages, as well as any other benefits that the employee is entitled to. The amount of gross earnings of his employees is a material information that the employer is under a duty to disclose to his insurer, in view of the fact that this amount forms the basis for the assessment of the premium. At the end of every period of insurance the employer has to submit again a similar statement, so that any necessary readjustments may be made. Employers who fail to insure as provided by the Legislation are liable to prosecution and in case of conviction they may face imprisonment for a period of up to 12 months or a fine of up to C£ 1,000 or both sentences. Similar penalties are provided also in case of false declarations or concealment of material facts. Registration number of employer The Social Insurance Number of the employer is a necessary element which should appear on all basic documents relating to the Insurance Cover. For this reason all employers should know and disclose this number to their insurers.
1. The information contained here above is intended to give a general outline of the basic provisions of the legislation. For more detailed information, it is recommended to obtain and study the relevant law and regulations. 2. PROGRESSIVE recommends that a
potential purchaser thoroughly examine any policy or contract offered and
consult with an appropriate expert to be certain of the precise nature of its
details.
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