Sec. 12.1. (a) The worker’s compensation board, upon hearing a claim for benefits, has the exclusive jurisdiction to determine whether the employer, the employer’s worker’s compensation administrator, or the worker’s compensation insurance carrier has acted with a lack of diligence, in bad faith, or has committed an independent tort in adjusting or settling the claim for compensation.

     (b) If lack of diligence, bad faith, or an independent tort is proven under subsection (a), the award to the claimant shall be at least five hundred dollars ($500), but not more than twenty thousand dollars ($20,000), depending upon the degree of culpability and the actual damages sustained.

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Terms Used In Indiana Code 22-3-4-12.1

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
     (c) An award under this section shall be paid by the employer, worker’s compensation administrator, or worker’s compensation insurance carrier responsible to the claimant for the lack of diligence, bad faith, or independent tort.

     (d) The worker’s compensation board shall fix in addition to any award under this section the amount of attorney‘s fees payable with respect to an award made under this section. The attorney’s fees may not exceed thirty-three and one-third percent (33 1/3%) of the amount of the award.

     (e) If the worker’s compensation board makes an award under this section, it shall reduce the award to writing and forward a copy to the department of insurance for review under IC 27-4-1-4.5.

     (f) An award or awards to a claimant pursuant to subsection (b) shall not total more than twenty thousand dollars ($20,000) during the life of the claim for benefits arising from an accidental injury.

As added by P.L.258-1997(ss), SEC.11. Amended by P.L.31-2000, SEC.5.

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