Vocational insurance funds, also known as occupational insurance funds, are specific types of insurance schemes that are designed to cater to workers from a particular industry or profession.

The primary purpose of these funds is to provide financial assistance to workers who are unable to work due to illness or injury.

This article will outline six essential facts about vocational insurance funds that everyone should know.

1. What is a Vocational Insurance Fund?

A vocational insurance fund is an insurance scheme that provides financial assistance to workers who are unable to work because of a work-related injury or illness. These funds are designed for workers in a specific profession or industry.

The funds are funded by the contributions of the workers and their employers.

2. Who can Join a Vocational Insurance Fund?

Anyone who works in the profession or industry covered by the vocational insurance fund can enroll in the scheme. Workers enrol in the scheme through their employer, who deducts contributions from their salary and forwards them to the fund.

Self-employed people can also join some of these funds either through their professional organization or directly by contacting the fund directly.

3. Benefits of Joining a Vocational Insurance Fund

The primary benefit of joining a vocational insurance fund is that it provides financial support to workers who are unable to work because of a work-related injury or illness.

The fund provides support in the form of weekly income payments, medical expenses, rehabilitation costs, and any other medical treatment required by the worker. The financial assistance provided is meant to help the worker recover and return to work fully.

4. How are Contributions Determined?

The contributions made to the vocational insurance fund are determined based on the level of risk involved in the profession or industry.

Professions with a higher risk of accidents, injury, or illness have higher contributions than those with a lower risk. The contributions are shared between the employer and the employee, with the employer contributing a higher percentage of the amount.

5. What Happens if the Worker Cannot Return to Work?

If the worker is unable to return to work because of a work-related illness or injury, the vocational insurance fund can provide financial assistance until the worker is fit to return to work, or until retirement if necessary.

The amount of financial assistance provided will depend on the type of injury or illness sustained and the severity of the condition.

6. How is Money Withdrawn from a Vocational Insurance Fund?

The financial assistance provided to the worker is withdrawn from the vocational insurance fund in the form of weekly income payments, medical expenses, or other necessary expenses such as rehabilitation or any other medical treatment.

The worker must submit their claim to the fund, and the claim will be assessed by the fund to determine the validity of the claim. Once the claim is validated, the payment is made to the worker.