Workers’ Comp
Around the World
Or
I’m glad to be in America
Tim East
The Walt Disney Company
WCCP Conference
Hammock Beach Resort, Florida
June 8, 2010
Workers’ Comp Around the World
• American state-specific systems are fairly
unique
• Diversity and variation are significant even
in neighboring countries
• At the same time, there are some
remarkable consistencies in worker’s
compensation
Workers’ Comp Around the World
But in some ways things are
very difference outside the
United States…
Outside the United States…
Workers’ Comp Around the World
Yet on the serious side, we
have a lot to be thankful
for…and careful if and when
our organization expands
overseas…
Scale of Accidental Injury Overseas
• 188 Workers Killed
• 469 Injured
• 40 minutes before first
response arrived
Kadar Toy Factory Fire
• 188 Workers Killed
• 469 Injured
• 40 minutes before first
response arrived
Fallout of the Tragedy
Introduced to International
Claims Management
Hong Kong Disneyland
Hong Kong Disneyland - 1999
Unique
Exposures
Finding HKDL
by Car
Arriving by Train
The City of Hong Kong
Workers’ Comp Around the World
Hong Kong Claims Team
Hong Kong
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Run by the HKSARG
One country…two systems
Strong judicial and legal system
No exclusive remedy…injured workers
may pursue a civil claim
• No contingency fees…limits civil claims!
• Some unique challenges…
Bamboo
Scaffolding
Unique Safety Equipment
Subrosa is very
difficult
Management Responsible to
Maintain Good Fortune
Opening Day
September
2005
Workers’ Comp Around the World
One thing I learned:
Understanding cultural
issues is critical!
Cultural Differences
Cultural misteps or offenses can derail a
project or risk management program
Singapore
Singapore
• Subject to Workmen's Compensation Act
• Compulsory employer and employee
contributions to the Central Provident Fund
(Pension) and Medisave (Medical Plan)
• Covers “blue collar” and “white collar” except
white collar earning more than US$1,000 per
month
• All others have recourse to common law
• Settlement strategy is easy….
Singapore
Maximum value in SGD:
• $111,000 (about $73,000 US)
• $111,000
• $111,000
• $111,000
• $111,000
China
An emerging
system
• The “Ordinance on Occupational Injury
Insurance” effected January 2004
• Requires local authorities to establish
worker’s compensation funds
• Scheme for employer contributions of
.5 to 3% based on industry, “company”
and location to a “provident fund”
• Just starting to be put in practice in
major cities
Chinese PD Schedule
Amount payable from PRC Social Scheme
Condition in Summary
Sample Medical Conditions
Subsidy for injury
& disability (Lump
Sum)
27 month's salary
(RMB135,000 /
US$21,600)
Injury & Disability Nursing Allowance (if Medical subsidy (Lump Death /Funeral Injury & Disability Re-Employment Subsidy
subsidy/allowance applicable) (By month) Sum)
Subsidy (Lump subsidy/allowance for injury & disability
(by month)
Sum)
(by month)
(Lump Sum)
90% salary
(RMB4,500 / US$720
per month)
Grade 1
Loss of an organ or complete or irreplaceable
Severe damage to cognitive functions
loss of organ function; requiring special medical and intelligence, loss of sight in both
care and support; complete loss or serious loss eyes.
of the ability to care for oneself.
Grade 2
Severe damage to or deformity of an organ;
serious functional deficiencies or complications;
requiring special medical care and support;
complete loss or serious loss of ability to care
for oneself.
Severe damage to or deformity of an organ;
serious functional deficiencies or complications;
requiring special medical care and support;
partial loss of ability to care for oneself
Serious damage to cognitive
intelligence; loss of sight in one eye
and less than or equal to eight percent
of normal vision in the other.
25 month's salary
(RMB125,000 /
US$20,000)
80% salary
(RMB4,500 / US$640
per month)
Loss of a hand, dangerous and
impulsive behavior caused by
psychotic disorders; serious
disfiguration on the face.
23 month's salary
(RMB115,000 /
US$18,400)
75% salary
(RMB3,750 / US$600
per month)
Severe damage to or deformity of an organ;
serious functional deficiencies or complications;
requiring special medical care and support but
capable of self-care,
Major damage to or deformity of an organ; major
functional deficiencies or complications;
requiring general medical care but capable of
self care
Psychotic diseases leading to social
skills deficiencies; medium level of
facial disfiguration and scars over 70
percent or more of the body.
Complete loss of speech; complete
loss of ability to read and write;
moderate facial disfiguration, loss of
thumb.
21 month's salary
(RMB105,000 /
US$16,800)
70% salary
(RMB3,500 / US$560
per month)
Grade 6
Major damage to or deformity of an organ;
moderate level of functional deficiencies or
complications; requiring general medical care
but capable of self care.
Incomplete loss of speech, serious
colourization or dis-colourization on the
face.
16 month's salary
(RMB80,000 /
US$12,800)
Grade 7
Partial damage to or deformity of an organ;
moderate functional deficiencies or
complications; requiring general medical care
but capable of self care.
Partial damage to thumb; loss of toes,
except the big toe; removal of half the
small intestine.
13 month's salary
(RMB65,000 /
US$10,400)
Grade 8
Partial damage to or deformity of an organ;
moderate functional deficiencies; requiring
moderate medical care but capable of self care
Change of personality due to psychotic
disorders; speech difficulties.
11 month's salary
(RMB55,000 /
US$8,800)
Grade 9
Partial damage to or deformity of an organ;
moderate functional deficiencies that do not
require medical care
Damage to the skull with an area of
less than 25 cm2.; loss of index finger.
Loss of two toes, except the big toe.
Grade 10
Partial damage to or deformity of an organ; no
functional deficiencies; not requiring medical
care, and capable of self-care.
Damage to the skull with an area of
less than 9.24 cm2.; loss of finger,
except the thumb;
Grade 3
Grade 4
Grade 5
Amount payable by Employer
18 month's salary
(RMB90,000 /
US$14,400)
50% for those
completely incapable
of self-care, 40% for
those mostly incapable
of self care - and 30%
for those partially
incapable of self care
based on the average
monthly employee
salary in the city for
the last year (50% RMB1,850 /USD300,
40% - RMB1480,
USD240, 30%RMB2,590, USD180 per
month)
18 months average
salary of the city
(RMB66,600 /
US$10,800)
15 months average
salary of the city
(RMB55,500 /
US$9,000)
70% salary
18 months average
(RMB3,500 /
salary of the city
US$560 per month) (RMB66,600 / US$10,800)
20 times
average salary
60% salary
15 months average
of the city
salary of the city
(RMB461,000 / (RMB3,000 /
US$74,000) US$480 per month) (RMB55,500 / US$9,000)
12 months average
salary of the city
(RMB44,400 /
US$7,200)
12 months average
salary of the city
(RMB44,400 / US$7,200)
9 months average
salary of the city
(RMB33,300 /
US$5,400)
9 months average salary
of the city (RMB33,300 /
US$5,400)
9 month's salary
(RMB45,000 /
US$7,200)
6 months average
salary of the city
(RMB22,200 /
US$3,600)
6 months average salary
of the city (RMB22,200 /
US$3,600)
7 month's salary
(RMB35,000 /
US$5,600)
3 months average
salary of the city
(RMB11,100 /
US$1,800)
3 months average salary
of the city (RMB11,100 /
US$1,800)
• Foreign nationals are not covered; insurance
should be secured from home country
• Most companies buy Employer’s Liability
coverage coordinated with group accident
policies
• Provides 24-hour coverage for their
employees at a modest cost
• Most claims: $120 - $1,200
• Most severe death claim: $120,000
The UK
• Basic government scheme covers all
workers
• Employees working abroad are not
included…
• Injured workers may still sue their
employers under common law
Claims Environment
• Significant source of claims for Disneyland
Paris
• Solicitation of claimants may be a factor
The “Compensation Calculator”
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Germany
Ein offerzung
un
zippen squatten
The Rechtsverordnung
requires compensation for work
related accidents and some occupational diseases
Employer contributions based on type of business and
prior claims experience
Funds sent to local agencies that administer the Social
Security Scheme
The “Berufsgenossenschaften”
OSHA? Try the “German Federation of Institutions for
Statutory Accident Insurance and Prevention”, or,
Hauptverband der gewerblichen
Berufsgenossenschaften
German Workers’ Comp Attorneys settle
claims at the local Board
Common Approaches
A Government scheme attached to social
security, and often the social medical system
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Mexico
The Philippines
Norway
Saudi Arabia (funded
by 2% of wages)
– France (no right to
sue)
– Canada (government
monopoly)
– Bulgaria (allowed to
sue)
– Brazil
– Austria
– Turkey
– Russia
Common Approaches
Private insurance allowed but regulated:
– Belgium
– India
– United States
Government insurance company or fund:
– Ukraine
– South Africa
– Puerto Rico (employee has option to sue)
Common Approaches
Around the world:
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Medical care is ranges from very good to very poor
Civil litigation is very common where allowed
Claim values are much lower regardless
In countries with private systems, claims
management makes a big difference
– All employers should secure a “Foreign Voluntary
Worker’s Compensation” policy if employees travel
overseas
– Claims professionals speak the same
language…about the same problems!
International Claim Challenges
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Who is eligible for benefits?
Who to pay them?
How to resolve small claims?
Valuation of the loss
Judicial systems and “venue shopping”
Local customs and traditions…
Judicial Systems
U.S.A.
Foreign Jurisdictions
Jury System
Judges
“Make the Best Argument”
“Documentary Evidence”
Testimony
“Find Truth”
Contingency Fees
Loser Pays
Claim Payments
U.S.A.
Foreign Jurisdictions
Economic Loss
Economic Loss
Non-economic Awards
Subject to Schedules
Punitive Damages
Not Likely
Runaway Verdict Possible
Costs Awarded by Judge
Summing it Up
The Global Claims Manager
Summing it Up
1.
2.
3.
4.
Go early and learn from others
Select a strong local advisor/broker
Establish and build relationships first
Be prepared to provide more submission
details and information
5. Establish loss prevention expectations early
6. Visit in person as often as possible
7. Don’t underestimate cultural issues
Summing it Up
The Global Claims Manager