Georgia Adjuster Practice Test

Which of the following is NOT covered by the Federal Employee's Compensation Act (FECA)?

1. Medical expenses

2. Damages awarded by a court

3. Disability benefits

4. Death benefits

The correct answer is: Damages awarded by a court

The Federal Employees' Compensation Act (FECA) was established to provide benefits to federal employees who are injured on the job or who contract a work-related illness. Under FECA, various types of benefits are covered, including medical expenses, disability benefits, and death benefits. However, damages awarded by a court are not covered under this act. When an employee is injured on the job, FECA offers a specific system designed to handle claims for workplace injuries without the need for litigation. This means that while employees are eligible to receive medical costs, partial or total wage loss due to disability, and benefits for dependents in case of death, they cannot pursue additional damages through a court system for pain and suffering or punitive damages, as these would fall outside the scope of FECA. Therefore, the inclusion of court-awarded damages as a benefit option under FECA does not align with the purpose of the Act, which aims to provide a streamlined and efficient process for compensating injured employees without the adversarial nature of traditional court proceedings.