Which item is not considered indemnity?

• A. Litigation Expense
• B. Permanent Disability
• C. Medical Expense
• D. Vocational Rehab

Answer: (A)

Indemnity covers benefits paid to replace the worker’s wage loss or compensate for impairment due to a work injury. It’s about the employee receiving cash or services tied directly to their injury and return-to-work goals.

Litigation expenses are not payments to the employee or reimbursements for injury-related care; they’re costs incurred by handling or defending the claim. They do not compensate for lost wages, medical treatment, or rehabilitation, so they aren’t considered indemnity. The other items—permanent disability (a cash indemnity for impairment), medical expenses (treatment-related costs covered by the plan), and vocational rehabilitation (services aimed at returning the worker to work)—fit within the indemnity framework because they involve the kinds of compensation or reimbursed services tied to the injury.