Lecture 6 ---Industrial+accident+compensation+insurance.pdf

?References: ? Krueger, A. B. (1990), “Incentive effects of workers’ compensation insurance”, Journal of Public Economics, 41(1), 73-99. ? Krueger, A. B. and B. D. Meyer (2002), “Labor supply effects of social insurance”, Handbook of Public Economics, Chapter 33. ?The IACI is the mandatory insurance program for workers that pays benefits to the insured workers or families of the insured in case of injury sickness , , disability, or death arising out of l temp oymen . 3000 3500 0 8 0.9 1 2000 2500 0.6 0.7 . Number of deaths 1000 1500 0 3 0.4 0.5 Accidents per 100 workers 500 0.1 0.2 . Deaths per 1000 workers 00 14 16 Mining 10 12 Manufacturing El t i it d 6 8 ec r c y, gas, an water treatment Construction 2 4 Transport and communication 0 2002 2003 2004 2005 2006 2007 2008 Others ?The IACI program was set up first in 1964, with effect from 1 July 1964. ? The coverage has expanded to all workers since 1 July 2000. ? The self-employed individuals are not covered. ?The premium is paid by the employer. ? The contribution rate differs by industry according to the probability of an accident on the job. ?Types of IACI benefits ? Medical Care Benefits: In case of work-related injury or disease for 4 days or longer, the whole medical care expenses will be covered. ? Temporary Disability Benefits : The amount equivalent to 70% of the average daily wage for each day off work will be given. ? Injury-disease compensation annuity : For an insured who has not recovered after two years of medical treatment or has become disabled. ? Permanent Disability Benefits: For an employee whose work-related injury or disease has resulted in permanent disability. ? Nursing Benefits : For an employee who requires i l i d a constant or occas ona nurs ng care an actually receives nursing services. F l d S i B fit F ? unerea expenses an urv vors ene s : or the surviving dependent(s) of an employee who dies or is presumed dead due to a work related - reason. ?