The Federated Employers Mutual Assurance Company (RF) (Pty) Ltd (“FEM”) is licensed to conduct non-life insurance business.

Workmen’s Compensation

Workmen’s compensation is a compulsory form of insurance providing wage replacement and medical benefits to employees injured in the course of their employment and is governed by The Compensation for Occupational Injuries and Diseases Act, (130 of 1993) or The COID Act. The aim of the COID Act is to provide for compensation to employees, or their dependents, in the case of death or disablement caused by occupational injuries and diseases, sustained or contracted by employees in the course of their employment, or death resulting from such injuries and diseases, and to provide for matters connected therewith.

FEM Structure

FEM has branches in Cape Town, Durban and Johannesburg with the Head Office in Johannesburg.

Each branch consists of:

  • Regional Manager
  • Branch Claims Manager
  • Claims Supervisors
  • Claims Administrators
  • Registry Administrators
  • Consultants
  • Underwriting Administrators

Link to the Compensation Fund

The law applicable to the Compensation Fund was passed in 1941 (Act No. 30 of 1941) and repealed by the law passed in 1993 (Act No. 130 of 1993) (“The COID Act”). The COID Act is aimed at providing compensation in a form of payment and medical aid for disablement caused by accidents to or industrial diseases contracted by employees in the course of their employment and for death or disease resulting from such accidents.

The COID Act gives powers to the Director General to appoint a Commissioner who has specific functions in terms of the COID Act. One of those functions is to administer the insurance policies, in terms of the COID Act, thus resulting in the State being the insurer and the administrator of the Compensation Fund. The Minister of Labour, in terms of section 30 of the COID Act, can issue a license to carry on the business of insurance of employers against their liabilities to employees in terms of the COID Act, to a mutual association. FEM is one of the two private sector companies that have been issued a license to provide services under the COID Act. The compensation, in terms of the COID Act, is funded by the employers. The COID Act places an obligation on these employers to make contributions on an annual basis.

According to the license referred to above, FEM is only licensed to provide services to employers registered under Class V in terms of the industry classifications. Such employers have an option of either insuring their Workmen’s Compensation Liability with the Compensation Fund or with FEM.

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