No Fault System

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The law governing the Indiana worker’s compensation cases is known as the Indiana Worker’s Compensation Act. The Act is a no fault system, which means that even if the employer was at fault or the employee was negligent, it does not matter in Indiana. Instead, Indiana employers have agreed to accept automatic liability for work-related injuries, as long as the employee suffered a personal injury by accident arising out of and in the course and scope of employment. In exchange, employees are limited to the worker’s compensation benefits provided by the Act. Injured workers may have the right to claim damages outside the Indiana worker’s compensation Act, if the accident was due to the fault of a “third party.” A third party, generally, is a person or entity not in the same employ as the injured worker. An example might be the manufacturer of a defective machine, if the machine caused the work accident.

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