phi

[annel]

has anyone heard of a situation where an employee has a disability and their employer suggests the following under the phi policy: employer pays 50% of employees salary and the insurance company pays 75% of the remaining 50%, in other words the employees salary actually reduces?

however, if the employee goes off ill after 13weeks they would be paid 75% of full salary

 

[ClubMan]

I thought that partial salary cover was pretty common with employer provided PHI schemes? Often salary while off sick but not permanently incapacitated as far as work is concerned may also be reduced by any SW disability payments to which the employee is entitled. If the employee is off indefinitely or permanently the partial salary cover may be paid out.

 

[RS2K]

Doesn't sound right.

It would be madness to have people better off out of work sick than working.

A deferred period always applies before phi payments kick in. minimum 13 weeks afaik.

Anything payable before this is at the employers discretion. Social welfare benefits may be available too.

 

[ClubMan]

I'm pretty sure that my employer's PHI scheme only covers partial salary. I must check.

 

[ClubMan]

It would be madness to have people better off out of work sick than working.

Yes - the following is a brief summary of my employer's ("Company X") cover:

It’s 75% of salary, less €8,622 in respect of the State Disability Benefit. This is done so that in the event of a claim a claimant would receive a total of 75% of their salary, inclusive of the €8,622 State Disability Benefit.

It comes in after 26 weeks. In Company X's case this is because the company would pay your salary for 26 weeks, and then the PHI would take over. Other schemes might have a 13 or a 52 week waiting period.

The reason for the 75% limit (66% on some schemes) is to avoid the possibility that a claimant would be as well off by claiming as by working, which could give an incentive to stay claiming.