Question

An employee was furnished a company automobile for his business and personal uses. While driving to a movie one evening, his automobile was struck by another vehicle at an intersection. The employee and two members of his family were injured. Which of the following statements is true?

Choose one answer.
a. No coverage under the Worker's Compensation policy
b. All injuries would be covered by Part Two of the policy
c. Worker's Compensation policy would pay for employee's injury
d. Worker's Compensation policy would pay for employee's injury under Part One and injuries to family members under Part Two (Employer's Liability)

Answer 1

The employee's injury would not be covered by the Worker's Compensation policy as the accident occurred during personal time, not while on the job. Worker's Compensation insurance is intended for on-the-job injuries only.

Step-by-step explanation:

The scenario described involves a company automobile being used for personal reasons when an accident occurred. Under typical Worker's Compensation insurance policies, coverage is provided for employees who suffer an injury on the job. In this case, since the employee was not on the job, but rather driving to a movie, the accident would not fall under the criteria of a work-related injury. Thus, the correct answer is:

a. No coverage under the Worker's Compensation policy

Worker's Compensation is strictly for on-the-job injuries and does not cover personal use situations or injuries to family members, regardless of the vehicle's ownership. Other types of insurance such as health, car, and employer's liability insurance might offer coverage depending on the specific policy details in place for such a personal use accident.