A police officer who was injured on the job and received workers' compensation benefits will recover UIM benefits from his employer's insurer after the Pennsylvania Supreme Court overturned the appellate court's ruling to the contrary. The high court ruling was issued earlier this month.

The police officer in the case was seriously injured in an auto accident in October 2002, while working. He filed for workers' compensation and received two-thirds of his salary and coverage for his medical bills. His employer, Sugarcreek Borough reportedly paid the other third of his salary. Though the man also recovered another $25,000 from the insurer of the driver who was to blame for the accident, his damages and losses were much more.

To help cover the expenses, the police officer attempted to secure UIM benefits from his employer's insurance policy that was issued by Pennsylvania Pooled Risk Insurance for Municipal Entities (Penn PRIME). Though under the policy up to $100,000 of coverage is available per accident or person, the insurer denied his claim citing a policy exclusion. The exclusion indicated that UIM coverage was not applicable to claims made by individuals who are eligible for workers' compensation benefits.

In making its decision, the Supreme Court stated that such an exclusion is a violation of public policy. It also indicated that because nearly all UIM claims that might potentially be made would be made by employees who were eligible for workers' compensation benefits, upholding the UIM coverage would result in illusory coverage. Citing state law, the court also stated when a work related injury is caused by a third party, it is the burden of the UM/UIM carrier or tortfeasor to pay the benefits.

Source: Insurance Journal, "Penn. Court Strikes Down Workers' Comp Exclusion in UIM Policy," Young Ha, Oct. 24, 2011