Compensation Statistics: Challenges in Prevention of Employment … · 2017-04-05 · 4 SEMINAR KKP, Hotel Bangi Putrajaya, Bangi COMPENSATION TO OCCUPATIONAL AND COMMUTING ACCIDENTS

1

SEMINAR KKP INDUSTRI PERKAYUAN DAN PERLADANGAN HUTAN 16.03.2017 BANGI

Compensation Statistics: Challenges in Prevention of Employment Injury and Diseases Harun bin Bakar Manager Prevention Section, Social Security Organization Malaysia

2

SEMINAR KKP, Hotel Bangi Putrajaya, Bangi

• Currently insuring 14.5 million workers & 856,354 employers (All workers with income of RM4000 (≈ €900) and below).

• Contribution of 2.25% of the average salary (1.25% Employment Injury Scheme – Funded by Employer &

1% for Invalidity Pension scheme – Equally Shared by Employer & Employee)

• Manage over 100,000 Claims/per year • Over 60,000 accidents • Over 30,000 permanently disabled • Over 10,000 Claiming for invalidity (≈3000 certified

invalid)

SOCSO Malaysia

Compensation Practice

3


EMPLOYMENT INJURY

INSURANCE SCHEME

• Rated of contribution: 1.25% of employee’s monthly wage

• Paid solely by employer

• Rate determined and not changed since 1971

• Fully Funded scheme

• Protection for work related commuting accidents; industrial injury & Occupational Diseases

• Benefits:

• Medical Disablement Benefit

• Temporary Disablement Benefit

• Permanent Disability Benefit

• Constant Attendance Allowance

• Dependants Benefit

• Funeral Benefit

• Rehabilitation Benefit

• Educational Benefit

INVALIDITY PENSION

SCHEME

• Rated of Contribution: 1% of monthly wages equally shared between employer and employee

• Scheme introduced in 1974

• Partially Funded

• 24 hr. Protection for Invalidity from illness or accident or death irrespective of cause. Death coverage from 1985

• Benefits:

• Invalidity Pension

• Survivors Pension

• Constant Attendance Allowance

• Funeral Benefit

• Rehabilitation Benefit


4


COMPENSATION TO OCCUPATIONAL AND COMMUTING ACCIDENTS & OCCUPATIONAL DISEASES

EMPLOYMENT INJURY INSURANCE SCHEME • Medical Disablement Benefit - free treatment at SOCSO panel clinics or

government hospital

• Temporary Disablement Benefit – 80% of daily average salary; Min: RM30

Max: 105.33

• Permanent Disability Benefit – 90% of average daily salary; Max RM118.49 Payment based on salary, age and assessment by medical board; > 20% assessment

• Constant Attendance Allowance – monthly payment of RM500.00

• Dependants Benefit – payment to dependent in the event of fatal -90% of salary to wife, children, spouse, parents, next of kin or grandparents depending on the priority list.

• Funeral Benefit – RM1500.00

• Rehabilitation Benefit – training on vocational & rehabilitation- orthotic and prosthetics- Dialysis and RTW


5


Analysis on current Compensation Practices….

6


TOTAL NUMBER OF REPORTED ACCIDENTS 2004 –2016p

73,858

69,132

61,182 58,321

56,339 54,133 55,186

57,639 59,897

61,552 63,557 63,331 62,863

66,618

56,249

50,803

43,885 40,617

38,657 35,092 34,376

35,603 35,088 35,296 35,898 35,294 34,272 35,304

17,609 18,329 17,297 17,704 17,682 19,041 20,810

22,036 24,809 26,256 27,659 28,037 28,591

31,314

0

10000

20000

30000

40000

50000

60000

70000

80000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016Total Accidents Reported Industrial Accidents Commuting Accidents

7


INDUSTRIAL ACCIDENTS VS COMMUTING ACCIDENTS 2002-2016p

56249

50803

43885 40617

38657 35092 34376 35603 35088 35296 35898 35294 34272 35,304

17609 18329 17297 17704 17682 19041 20810 22036

24809 26256 27659 28037 28591

31,314

0

10000

20000

30000

40000

50000

60000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Industrial Accident Commuting Accident

7

8


8

Compensation: Employment Injury

109.18 119.77 135.62 150.27 166.78 177.86

306.38 326.17 363.51

392.77 448.51 470.60

205.32 192.63 216.01

219.72

250.39 263.26

0

100

200

300

400

500

600

700

800

900

1,000

2010 2011 2012 2013 2014 2015p

RM

Mill

ion

s

Temporary Disablement Benefit Permanent Disablement Benefit Dependants' Benefit

9


9

Compensation: Invalidity and Survivor’s Pension

345,566,000 340,967,277 413,392,077 453,647,031 496,817,281 550,745,738

581,519,646 583,761,116

704,287,285 762,202,092

834,698,615 929,300,680

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

2010 2011 2012 2013 2014 2015

invalidity survivors pension

10


Human capital cost -Disability

55

,78

5

31

,17

5

58

,44

4

33

,25

7

59

,31

2

34

,04

9

59

,19

0

36

,53

0

60

,07

1

37

,71

1

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

TDB PDB

Be

nef

it R

eci

pie

nts

2011 2012 2013 2014 2015

2015: 37,711 are permanently

disabled

11


Values

12


11,821 12,455 13,039 13,622 14,357 14,589

2,151 2,362 2,586 2,836 2,996 3,116

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2010 2011 2012 2013 2014 2015

NUMBER OF PDB RECIPIENTS ACCORDING TO GENDER, 2010-

2015

Male Female

41

7

1,8

09

2,4

76

2,5

06

2,5

01

2,3

49

2,2

24

1,8

33

95

7

41

5

21

8

0500

1,0001,5002,0002,5003,000

Bel

ow

20

20

-24

25

-29

30

-34

35

-39

40

-44

45

-49

50

-54

55

-59

60

-64

65

an

d o

ver

NUMBER OF PDB RECIPIENTS ACCORDING TO AGE GROUP

AND GENDER, 2015

Male Female Total

13


7% 0%

14%

39%

24%

8% 2% 5% 3% 0%

10%

31% 28% 24%

2% 2% 0%

10%20%30%40%50%

Percentage (%) Number of CA and IA Paid According to Location of Injury for PDB, Year

2015

% Number of IA Paid % Number of CA Paid

14


71

12

86

4

16

1

81

24

14

14

13

0 5

61

73

69

0

15

8

71

30

29

15

27

5

6

0

1000

2000

3000

4000

5000

6000

7000

8000

0-10 10-20 20-30 30-40 40-50 50-60 60-70 70-80 80-90 90-100

% o

f D

isab

ility

Number of IA and CA Paid According to Percentage

of Disability for PDB, Year 2015

IA CA

How disabled are they?

15


2,1

47

10

,46

3

2,3

21

10

,93

0

2,5

34

11

,53

6

2,8

18

12

,27

8

2,9

61

12

,47

9

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

TDB PDB

Am

ou

nt

(RM

)

2011 2012 2013 2014 2015

Average (Mean) per person Cost of compensation for TDB and PDB

16


2,755,888 2,922,026

3,140,657 3,263,058 3,396,800

2011 2012 2013 2014 2015

No

. of

Day

s No. of Man-days Lost Due To Workplace Accidents and Diseases

17


277

656

287

646

309

691

0

100

200

300

400

500

600

700

800

Workplace Commuting

2013 2014 2015

Human capital cost- FATALITIES

17

18


90.2%

9.8% Male

Female

Loss of bread winner, male figures in the family..Fatalities due to accidents 2015

Source: SOCSO Annual Report 18 18

19


39

,99

2 41

,13

8 42

,26

6

42

,95

1

43

,71

0

38,000

39,000

40,000

41,000

42,000

43,000

44,000

Be

nef

it R

eci

pie

nts

2011 2012 2013 2014 2015

Dependents benefit recipients

20


39

,99

2

41

,13

8

42

,26

6

42

,95

1

43

,71

0

38,000

39,000

40,000

41,000

42,000

43,000

44,000

DpB

Be

nef

it R

eci

pie

nts

2011 2012 2013

2014 2015

19

3

21

6

22

0

25

0

26

3

0

50

100

150

200

250

300

DpB

Be

nef

it P

aym

en

ts

RM

Mill

ion

s

2011 2012 2013

2014 2015

Dependents benefit recipients and cost

21


Challenges to Compensation Practices

22


Commuting accidents

17,297 17,704 17,682 19,041

20,810 22,036

24,809 26,256

27,659 28,037 28,579

0

5000

10000

15000

20000

25000

30000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

23


21,989

6,061

22,223

6,368

24,383

6,931

-

5,000

10,000

15,000

20,000

25,000

30,000

Male Female

2014

2015

2016

Commuting Accident by Gender 2014-2016p Male is 4 times likely to get accident compared to Female


24


26846

5451

25,781

5,124

28,567

6,737

0

5000

10000

15000

20000

25000

30000

Male Female

2014

2015

2016

Industrial Accident by Gender 2014-2016p


25


837

96

902

98

832

131

0

200

400

600

800

1000

Male Female

2014

2015

2016

Fatal Accident by Gender 2014-2016p


26


63,423

56,249 50,803

43,885 40,617 38,657

35,092 34,376 35,603 35,088 35,296 35,898 35,294 34258

18,387 17,609 18,329 17,297 17,704 17,682 19,041 20,810 22,036 24,809 26,256 27,659 28,037 28579

81,810

73,858 69,132

61,182 58,321 56,339

54,133 55,186 57,639

59,897 61,552 63,557 63,331 62,837

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Industrial Accidents Commuting Accidents Total

INDUSTRIAL ACCIDENTS AND COMMUTING ACCIDENTS 2002-2015

26

27


28


194 263 341 515

954 1215

1537

2109

2630

3002 3358

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

No

of

OD

Cas

es

Years

Occupational diseases

29


-

100

200

300

400

500

600

700

800

2008 2009 2010 2011 2012 2013 2014 2015

Occupational Musculo -Skeletal Disorders New Disease?

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EMERGING ISSUE

• Worker demographic is changing; in line with the population demographic

• Our workers are getting older. What effect will this bring to the diseases trend? 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

31


SOCSO Insured Persons: Age distribution

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000

Below 20

20-29

30-39

40-49

50-59

Above 60

31

32


Accidents and invalidity by age (2015)

0 5,000 10,000 15,000 20,000

Below 20

20-29

30-39

40-49

50-59

Above 60

Workplace accidents

Workplace accidents

0 5,000 10,000 15,000

Below 20

20-29

30-39

40-49

50-59

Above 60

Invalidity

Invalidity32

33


Challenges – employee wellbeing

72

9 27

62

Percentage (%)

34


Impact of NCDS to Malaysian employees

0 2,000 4,000 6,000 8,000

Below 20

20-29

30-39

40-49

50-59

Above 60

Death (NCDs)

Death (NCDs)

0 2,000 4,000 6,000 8,000

Below 20

20-29

30-39

40-49

50-59

Above 60

Invalidity (NCDs)

Invalidity (NCDs)

35


7,522 6,775 6,755

8,498 9,206

10,769 10,409 10,497 11,050

13,261

14,466 15,173

243 251 279

366 399

457

535 514

613 646

744 782

-

100

200

300

400

500

600

700

800

900

1,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

5,500

7,500

9,500

11,500

13,500

15,500

17,500

19,500

21,500

23,500

RM

MIL

LIO

NS

NO

. OC

NC

D C

ASE

S

NCD Cases Reported Amount of benefit paid for Invalidity Pension due to NCD Cases

Non-Communicable Diseases vs Compensation

36


Impact of NCDs – End Stage Renal Failure

0

2000

4000

6000

8000

10000

12000

14000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

13

5

22

5

51

6

84

2

15

71

16

58

21

18

26

33

31

74

38

20

46

13

53

20

61

91

74

68

89

04

10

55

8

12

06

8

Number of SOCSO hemodialysis assistance recipients

36

37


Prevention – current SOCSO activities towards OSH Culture

38


Prevention as Priority

• Social Security Organization in the national OSH Plan

• OSH prevention activities as an organizational priority through Prevention Committee

• OSH training as priority for NGO activities

39


• Community • Exhibition • Road shows • Pamphlets • CDs

• Mainstream media • TV series in OSH • Radio

• Alternative platform • HyppTV • Youtube

Increasing visibility

40


Supportive environment for prevention

• Guideline on Commuting Safety Management; Workplace Health Promotion

• Budgetary allocations for OSH awareness and education

• Smart collaboration with NGOs and OSH agencies • Minimizing resources for maximized gain

• OSH Compliance Support for SMEs

• Commuting Safety Support Program

41


Evidence based intervention

• Research grants

• Working collaboration for OSH research

• Largest database of worker health and commuting accidents in Malaysia.

42


The way forward

43


Prevention Agencies

• Back to basics – strengthen the core functions • Enforcement /Promotion/Research

• Tackle the root cause- emphasis on problematic areas first

• Collaborate and share resources

44


Employers & Employees • Re-establish their commitment on safety and health

• Integrate safety and health at work

• Change mindset about compensation- it will not compensate everything you’ve lost

45


OSH Practitioners and Political Will • Walk the talk

• Equal focus on safety and health

• Realign focus on Commuting Safety Management

• Integrate safety and health in every day's life

• Paradigm shift about prevention and compensation

46


Conclusion • Prevention and Compensation are inter related and should

complement each other – even with the difference in focus

• Escalating cost of compensation shows there are room for improvement in prevention

• Prevention fails - Compensation fails – society pays

• Paradigm shift towards prevention culture (Excellent SHO) is vital towards OSHMP 2020

47


Thank you 03-42645503

[email protected]

Documents

Compensation Statistics: Challenges in Prevention of Employment … · 2017-04-05 · 4 SEMINAR KKP, Hotel Bangi Putrajaya, Bangi COMPENSATION TO OCCUPATIONAL AND COMMUTING ACCIDENTS