In the event of an occupational accident or occupational disease, the employee is entitled to compensation specified in the Workers’ Compensation Act. The amount of compensation cannot be negotiated between the insurance company and employee. In most cases, the employee does not need to apply for the compensation. Instead, the insurance company determines the compensation to which the injured person is entitled, based on the reported occupational accident or disease. There is no monetary limit on the amount of compensation nor, in most cases, time limits on compensation.

Compensation paid out for occupational accidents and occupational diseases take precedence over other statutory social security. In the case of an occupational accident, compensation is primarily paid on the basis of the Workers’ Compensation Act and secondarily from motor liability insurance or pension insurance, for example.


The employee is hit by a car while on the way home from work. The medical expenses for the injury and possible loss of income are covered by workers’ compensation insurance. The motor liability insurance of the car that hit the employee covers costs that are in excess of those covered by workers’ compensation insurance.

As the compensation is specified by law, other losses are not compensated under worker’s compensation insurance.