The workers’ compensation insurance system, nearly 100 years old, has long been criticized by many as being unfair, overly bureaucratic and something that insurance companies have learned how to manipulate.

What is workers’ compensation?

Workers’ compensation is basically a tradeoff. Workers who are injured on the job have their medical bills paid in exchange for not bringing a lawsuit against their employers. The system was created nearly 100 years ago to reduce the number of lawsuits that could potentially arise in an employer / employee relationship. While good in theory, the system has changed since its inception and many industry analysts suggest that insurance companies have taken advantage of the injured workers who were supposed to be protected.

Insurers have no incentive to change

According to a recent article by Ray Polly, a private investigator with the California Insurance Fraud Task Force, insurance companies have no incentive to change. In his article about insurance fraud, available online at www.californiaprogressreport.com/, Polly says:

Insurance carriers pay serious fines, penalties, and jury awards for their illegal and fraudulent activities outside of workers’ compensation claims, but continue to “fine-tune” their effort to eliminate legitimate injury claims. They have found it more profitable because with no punitive damage awards in Workers Compensation, only the injured workers' benefits are at stake.

We continue to pay for insurance because the law mandates we have a policy for so many things; i.e. Auto, Health, Home, and Workers’ Compensation among others. Insurance companies have no fear of losing customers, just in having to pay claims. Therefore, they have been chipping away at the insurance laws and regulations. Their plan is to reduce benefits and eliminate claims through the most cost effective way possible.

Know your rights

Polly isn’t the only person to criticize the Workers’ Compensation system. Even with Governor Schwarzenegger’s sweeping reforms to the California system in 2004, many say that insurance companies still rule the roost. That’s why it’s important to know your rights. California’s Department of Industrial Relation’s Division of Workers’ Compensation provides helpful information about benefits, what to do when you’re hurt on the job and what guidelines need to be followed. To access their website, go to: www.dir.ca.gov/DWC/dwc_home_page.htm/.

What to do when you need help

When you find that you need help with your workers’ compensation claim or if the insurance company isn’t doing what it’s supposed to do, contact an attorney whose practice focuses in workers’ compensation law. Consultations are free, without obligation and strictly confidential.