Commentary

(7) Permanent health insurance

Division BI Pay
| Commentary

(7) Permanent health insurance

| Commentary

(7)     Permanent health insurance

In addition to contractual sick pay schemes, some employers provide generous permanent health insurance (PHI) benefits whereby employees who become incapable of work are guaranteed their salaries (often on a percentage basis) after a certain period of absence. Typically, the benefit becomes payable at the point at which sick pay expires. Such schemes were fairly common in the 1980s and 1990s but are seen much less often these days. Where they do exist, the definition of 'incapacity' will be crucial in determining whether an individual is covered by the policy. This can vary from being 'unable

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