2019 US Virgin Islands Code
Title 24 - Labor
Chapter 11 - Workers' Compensation Administration
§ 261. Uninsured employers

(a)

• (1) Claims for expenses for medical attendance, hospitalization, medicines, compensation and other expenses in the case of an employee working for an employer who, in violation of law, is not insured, hereinafter referred to as “uninsured employer”, shall be processed and paid for from the Fund in the same manner as claims against insured employers with the exception that any payments made shall be chargeable to the Uninsured-Employer Subfund, hereinafter created.

• (2) In the case of an injury to an employee, who was injured while working for an uninsured employer, the Administrator shall determine the proper compensation plus the expenses in the case, and shall collect from the employer, to be covered into the Uninsured-Employer Cases Fund hereinafter created, such compensation and expenses, provided that the Administrator shall include a penalty equivalent to 30 percent of the compensation and expenses but in no case shall such penalty be less than $10.

• (3) The Administrator shall grant the employer and the employee in such case an opportunity to be heard in their defense, following, as far as practical, the practice observed in the courts of the Virgin Islands. If the parties have been summoned by such means as the Administrator may adopt and they or either of them should fail to appear to be heard in their defense, it shall be understood that such party or parties waive their rights, and the Administrator may decide the case in default, without further delay.

(b)

• (1) The injured employee of an uninsured employer, or the employee's beneficiaries, instead of receiving compensation under this chapter may elect, at any time prior to the rendering of a decision by the Administrator, to bring suit for damages against the employer, just as if this chapter were not applicable.

• (2) Such employee or beneficiaries shall be entitled in such action to attach the property of the employer without furnishing bond, in order to insure satisfaction of such judgment as may be rendered, provided the court considers there is good cause for such action, after examining the claim which shall be sworn to. Such attachment shall include attorney's fees to be fixed by the court, and shall be effective until the case has been decided and the amount of the judgment paid.

• (3) In such proceedings, the fact that the workman or employee was guilty of contributory negligence or that he assumed the risk of injury, or the fact that the workman's or employee's injury or death was caused by the negligence of a fellow employee, shall not constitute a defense for the employer and no contract purporting to allow the use of any of these defenses shall be valid.

(c)

• (1) All expenses in the case of uninsured employers shall be paid by the Government Insurance Fund chargeable to the Uninsured-Employer Subfund. The Uninsured-Employer Subfund shall be made up from the amount of the collections made as a result of the liquidation of cases of uninsured employers.

• (2) There shall be maintained in the Uninsured-Employer Subfund, through transfer from the Reserve Fund when necessary, and subject to reimbursement, sufficient funds for the prompt payment of claims involving uninsured employers.

(d)

• (1) In cases declared uninsured in which the accident is due to negligence of a third person, the uninsured employer who has paid to the Government Insurance Fund the total amount of the liquidation of the case or who has secured payment by depositing a bond to the satisfaction of the Commissioner, may subrogate himself to the rights of the employee to recover the expenses incurred by him as a result of the accident.

• (2) The workman or employee or his beneficiaries shall be parties to such proceeding brought in the cause of action against a third person and any sum collected in excess of the sum paid to the Government Insurance Fund by the uninsured employer to cover the liquidation of the case shall be paid to the injured person or to his beneficiaries in case of death and no extra-judicial transaction shall be valid without their consent.