Workers’ Compensation Simplified.

What is Workers’ Compensation?

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 their employees in the unlikely event that they are injured or contract an illness while performing their daily work duties.

What is covered by this insurance?

Worker’s compensation cover is prescribed by the Compensation for Occupational Injuries and Diseases Act 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 (RF) (PTY) LTD. 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. Visit for more information.

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.

How does FEM use technology?

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.

How are premiums calculated?

Premiums are based on the total amount of wages you pay per annum. 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 Subject to terms & 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 program that covers areas such as housing, health and social services and education. In addition to our CSI program, in 2016 FEM committed R750m 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 amongst young South Africans. For more info email or visit

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