April 15th, 2017
Compulsory insurance compensation for injury at the workplace
Industrial Injuries Compensation Fund is a social insurance scheme that offers protection to employees who were injured in the workplace resulting in temporary or permanent loss of income.
Type of scheme
It is an insurance scheme in which employers insure with premium or contribute to a general or global fund. From this fund compensation is paid irrespective of contribution history, however, the fund can recover such expenses from faulty or non compliant employers.
Who is eligible to be covered?
The scheme has a very wide coverage in the sense that it covers all employers in the public and private sector organisations, local government authorities, employee who have retired (retirees) or are still on contracts apprentices or trainees are all covered in the scheme. An employee who is not registered with the scheme and is involved in an accident can claim for injury compensation but, will have to formalize his/her membership with the scheme first, by going through the relevant registration process.
Who is Disqualified?
The following categories of persons are disqualified from participating in this scheme:
All employers mentioned above must ensure that all their workers are covered under the scheme. Registration forms must be filled in respect of all such workers. However, there is no need to complete registration forms for workers who are already registered with either the pension fund (FPS) or provident fund (NPF) as the information required under the injuries compensation scheme is already available to SSHFC. Nevertheless, it is advisable that it be updated periodically especially when ones family circumstances change.
Who pays the contribution and how much?
The Act requires employers to pay the entire contribution each month on behalf of their employees, therefore nothing shall be deducted from the earnings of the workers. The contribution rate is 1% of Gross Salary (i.e. basic salary plus all other fixed allowances), however the ceiling for the maximum contribution is set at D15.
What benefits are paid out and how does the claims procedure work?
Survivors benefit and constant attendance allowance as well as lump sum or periodic pension depending on the nature of injury. For more information on the claims procedure Click HERE.
Who is responsible for the Administration of the IICF?
SSHFC and the Labour Department are joint administrators of the IICF with the Social Welfare and Medical and Health Department providing specialist support services and an Industrial Tribunal. Detailed below are their specific roles:
Current Act of Parliament - The Injuries Compensation Act 1990.
Compensation shall be payable to a workman who suffers an industrial injury or disease that incapacitates him for a period of at least 5 consecutive days. This includes any personal injury as a result of an accident whilst the workman is commuting to and from work within a reasonable time using the most direct route and reasonable means of transport or walking for the purpose of his employment.
Step 1: Reporting of Injury
Step 2: Investigation and information gathering
The Commissioner once notified will proceed with the necessary investigation and gather all the necessary data from relevant authorities for claim assessment, following which computation of compensation is done for qualifying cases and then forwarded to SSHFC.
Step 3: Submission of claim to SSHFC
Step 4: Payment of compensation