The 'lost wages' (indemnity) benefit is defined as what?

• A. Medical bills coverage
• B. Funeral expenses coverage
• C. Benefit provided for money the employee would have been making if able to work
• D. A stipend for relocation costs

Answer: (C)

The key idea is wage replacement. The lost wages benefit is the money the employee would have earned if they could work during the period of disability. It’s designed to offset the income drop caused by a work-related injury, not to pay for medical treatment or other costs. Medical bills are handled as medical benefits, while funeral expenses and relocation costs are separate types of assistance. In many workers’ comp systems, this indemnity is calculated as a portion of the worker’s usual earnings (often tied to the average weekly wage) and paid while the worker is disabled.