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There are some compulsory insurance policies for managers and middle management of industrial and commercial companies in Italy. Two contracts regulate these mandatory provisions: The National Industry Labor Contract and the National Commerce Labor Contract.
The National Industry Labor Contract
In Italy, there are two different classifications of people who manage organizations. First, we have the “Dirigente.” These are senior executives or directors. Then there are the “Quadri,” which are the middle managers. The National Industry Labor Contract provides compulsory insurances in Accident, Life, and Legal Protection.
Accident: For executives (“Dirigente”), in case of death, the sum insured is 5 times gross annual payroll, and in case of permanent disablement, the sum insured is 6 times yearly gross payroll. For the middle management (“Quadri”), the sum insured is 3 times gross annual payroll in case of death. In the case of permanent disability, the sum insured is 4 times the yearly gross payroll.
Life: For executives death sum insured and permanent disablement, the sum insured is EUR 300,000 (reduced to EUR 200,000 for a single person). For the middle management, in case of death and permanent disability, the sum insured is EUR 20,658.27.
Legal protection: The contract foresees for both the categories (“Dirigente” and “Quadri”) that the employer must guarantee the cover of the expenses and legal assistance in case of civil and penal procedures not due to grossly negligent or willful misconduct relating to facts directly connected with the exercise of the functions performed. The employer decides on the sum to be insured, which is either EUR 25,000 or EUR 50,000.
The National Commerce Labor Contract
The National Commerce Labor Contract foresees the following:
Accident: For executives in case of death, the sum insured is 5 times gross annual payroll, and in case of permanent disablement (including professional diseases), the sum insured is 6 times yearly gross payroll.
Legal protection: The contract foresees for both the categories (“Dirigente” and “Quadri”) that the employer must guarantee the cover of the expenses and legal assistance in case of civil and penal procedures not due to grave negligence or willful misconduct relating to facts directly connected with the exercise of the functions performed. The employer decides on the sum to be insured, which is either EUR 25,000 or EUR 50,000.
Figure 1
The categorization of companies
The allocation for the companies is based on the activity of the company. For example, suppose a German industrial company has a distribution unit in Italy. In that case, it will be assigned to the National Commerce Labor Contract since there is no industrial activity in Italy. The National Labor Contract regulates this process.
Risks caused by the absence of policies
Unlike in the UK, in the case of Employers Liability, there is no daily penalty for not having the above policies in place. If you employ ‘’managers’’ and, e.g., you don’t buy the accident policy as required by the National Labor Contract (CCNL), in case of an accident, the company must indemnify the person injured and/or his heirs up to the sum corresponding to the percentage of permanent disability calculated on the sum insured (6 times the annual payroll) and in case of death ( 5 times yearly payroll) or the sum that should be granted under the life insurance if present.
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