CIPS L5M2 Exam - Topic 2 Question 46 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 46
Topic #: 2

Fudgylicious Inc is a manufacturer of confectionary based in the United Kingdom. In one of its factories an employee has an accident during his shift which resulted in him breaking a leg and requiring surgery. Will the employer's Professional Indemnity insurance cover the cost of the operation?

Ayes- the insurance will cover all medical expenses as the accident occurred during his working hours

Byes- the insurance can be used as the accident occurred on the company's premises

Cno- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work

Dno- this is not the purpose of insurance

Show Suggested Answer

Suggested Answer: D

The correct answer is 'no-this is not the purpose of insurance'. The question asks if Professional Indemnity Insurance can be claimed on for this- no it can't- that's not its purpose. It would be Employer's Liability insurance which could be claimed on. This question tests your understanding of the different types of insurance. There is a very similar question in the exam- so remember accidents at work are claimed against Employer's Liability insurance NOT Professional Indemnity insurance - see p.96 for more information on different types of insurance

by Quinn at Sep 18, 2024, 12:56 PM

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Alaine

6 months ago

But isn’t it common for employers to cover medical expenses?

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Thora

6 months ago

Definitely option D, that’s not what insurance is for.

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Yvonne

6 months ago

Wait, so the insurance doesn’t cover medical costs? That’s surprising!

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Dierdre

7 months ago

I disagree, it should be covered since it happened at work!

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Casandra

7 months ago

I think it’s option C, just lost wages covered.

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Sherell

7 months ago

I thought that since the accident happened at work, the employer might have some responsibility, but I can't remember if PI insurance is the right type for this situation.

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Nieves

7 months ago

I feel like there was a practice question similar to this, and it mentioned that PI insurance doesn’t cover medical costs. So, I think D could be right.

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Gerald

7 months ago

I’m not entirely sure, but I think we covered that workplace injuries might be covered under different types of insurance, like Employer's Liability, not Professional Indemnity.

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Arminda

8 months ago

I remember discussing that Professional Indemnity insurance typically covers professional mistakes, not medical expenses. So, I'm leaning towards option C.

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Sina

8 months ago

This is a tricky one. I'll need to really analyze the wording of the question and the answer choices to figure out the right approach. Gotta be careful not to overthink it.

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Breana

8 months ago

Hmm, I'm a bit unsure about this one. The question doesn't specify the type of insurance, so I'll have to think through the different policies and what they typically cover.

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Fidelia

8 months ago

This seems like a straightforward question about the scope of the company's insurance coverage. I'll need to carefully read the details to determine if the medical expenses would be covered.

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Jody

8 months ago

Okay, I think I've got a strategy here. I'll need to consider whether the accident occurred during work hours, on company premises, and whether the insurance policy includes medical expenses or just lost wages.

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Arlie

2 years ago

Option D is the way to go, no doubt. This has nothing to do with the purpose of Professional Indemnity insurance. If I were the employee, I'd be hitting up the company's HR department for that workers' comp coverage!

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Tiera

2 years ago

It's important for employees to know their rights and options in situations like this.

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Cathrine

2 years ago

I agree, the employee should definitely look into workers' comp for coverage.

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Nakisha

2 years ago

Option D is correct. Professional Indemnity insurance is not meant to cover medical expenses.

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Orville

2 years ago

I'm going with C as well. Seems pretty straightforward - Professional Indemnity is for protecting the company from claims, not employee injuries. Unless the employee was suing the company, this wouldn't be covered.

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Arlette

2 years ago

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Talia

2 years ago

C) no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work

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Avery

2 years ago

B) yes- the insurance can be used as the accident occurred on the company's premises

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Marion

2 years ago

A) yes- the insurance will cover all medical expenses as the accident occurred during his working hours

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Lizette

2 years ago

B) yes- the insurance can be used as the accident occurred on the company's premises

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Carma

2 years ago

C) no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work

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Alfred

2 years ago

Haha, Fudgylicious Inc. sounds like a fun place to work! But in all seriousness, I agree with Berry - the insurance won't cover the surgery, only lost wages if the employee can't work. That's what workers' comp is for.

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Berry

2 years ago

I'd say option C is the correct answer. Professional Indemnity insurance is meant to cover liability, not employee medical expenses. The company should have separate workers' compensation coverage for that.

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