Many an injured seaman has faced the question: Are payments under the Jones Act a Worker’s Compensation offset to Long-Term Disability benefits? The answer: NO.
In many cases, long-term disability insurance companies attempt to escape liability by claiming that the disabled seaman was not covered by their policy because the policy worded an exclusion for claims for “Worker’s Compensation or occupational disease law, or any similar law.” In addressing the reasons why the two acts are different (seen below), the Court in Alvin Sanders v The Home Indemnity Company held that worker’s compensation and the Jones Act are not similar, and such a policy in fact does not exclude a Jones Act seaman. In other words, payments under the Jones Act are not a Worker’s Compensation offset to Long-Term Disability Benefits.
- The right to maintenance and cure need not arise out of an injury while in the course and scope of employment, like with Worker’s Compensation. A seaman merely needs to show that he was in the service of his ship.
- A seaman who receives maintenance and cure is still entitled to sue his employer for negligence under the Jones Act. An employee covered by Worker’s Compensation may not sue his employer for negligence.
- Maintenance and cure benefits are limited to medical expenses and a sum for living expenses, while Worker’s Compensation benefits compensate an employee for his loss of wages and are also based on the disability that an employee has suffered.
The Court’s ruling, that maintenance and cure, while somewhat like worker’s compensation, has little resemblance to worker’s compensation laws, is unquestionably significant in the maritime law. The difference clarifies whether a seaman is or isn’t entitled to long-term disability proceeds when involved in a Jones Act claim and/or receiving maintenance and cure.
* Every legal matter is different. The outcome of each legal case depends upon many factors, including the facts of the case, and no Jones Act attorney can guarantee a positive result in any particular case. This case does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. Prior results do not guarantee a similar outcome.
