Which item is not considered indemnity in workers' compensation claims?

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

Answer: (B)

Indemnity in workers’ compensation means payments that replace lost wages or compensate for impairment, not the costs of medical care or handling the claim. Permanent Disability is a direct indemnity benefit because it compensates for lasting impairment and its impact on earnings. Vocational rehabilitation supports the worker’s return to work and may involve wage-replacement aspects or retraining designed to restore earning capacity, which also falls under indemnity. Medical expenses are treated as a separate medical benefit, covering treatment costs rather than wage replacement or impairment compensation. The item that is not indemnity, because it represents the cost of defending or handling the claim rather than a wage loss or impairment payment, is the litigation expense.