Employment Injury Employment Injury Insurance Insurance

in Sri Lanka in Sri LankaByBy

B. Vasanthan & R.J. AbeysiriwardenaB. Vasanthan & R.J. Abeysiriwardena

Overview of DemographyOverview of Demography

Total Population is about 21.32 ml. (2009)Growth of population 0.904%, Density is 322/Km2

Life expectancy 73.08 years for Male and 77.28 years for female (Sep. 2010 )

Literacy rate – 93% Male and 90% Female

House hold size 4.1 membersChild Birth rate is 16.26 birth/1000 population (July

2010 )Child Death rate is 6.13 birth/1000 population (July 2010 )

Overview of the Labour forceOverview of the Labour force

• The estimate Labour Force is about 7.57 million.

• It comprises 1.2 million Government sector , 5.8

million in formal and informal sectors and 0.4

unemployed

• 7.57 million workers are working in (32.7%)

Agriculture, (26%) Industry, (41%) Service

sectors.

• Contribution to the GDP – Agriculture 12% ,

Industry 28%, Service 60%

Age StructureAge Structure

• 0-14 years: 23.9%

(male 2,594,815/female ,493,002)

• 15-64 years: 68%

(male 7,089,307/female 7,418,123)

• 65 years and over: 8.1%

(male 803,172/female926,372) (2010 est.)

Future Issues of DemographyFuture Issues of Demography

• 10% of the population is over 60 years of age

• Prime age population (15-59) will start to

decline from 2010

• Working age population will start to decline

from 2035

• Labour Force is slowing down from 2030

Overview of the Labour forceOverview of the Labour force

• The estimate Labour Force is about 7.57 million.

• It comprised 1.2 million Government sector , 5.8

million in formal and informal sectors and 0.4

unemployed

• 7.57 million workers are working in (32.7%)

Agriculture, (26%) Industry, (41%) Service

sectors.

• Contribution to the GDP – Agriculture 12% ,

Industry 28%, Service 60%

• Unemployment rate is 5.9% (2009)

• Comparison 2006 (6.5%), 2007 (6%),2008

(5.2%)

• GDP – US$ 42 billion (2009), GDP growth rate

is 6% (2008), 3.5% (2009)

• Per Capita income - US$ 2014

• Labour productivity per person US$

3237 by sectors Agriculture US$ 1220,

Industry US$ 3564, Services US$ 4780

• Labour productivity growth rate 6.5%

• Inflation rate 10% (2006), 15.8%

(2008), 3.4% (2009 est)

• 10% of the population is over 60

years of age

• Prime age population (15-59) will

start to decline from 2010

• Working age population will start to

decline from 2035

• Labour Force is slowing down from

2030

Future Issues of DemographyFuture Issues of Demography

Industrial Safety DivisionIndustrial Safety Division

• VisionHealthy Working population through Hazard-free

work place and Healthy work environment

• MissionImproving productivity by eliminating or Controlling

the industrial accidents and diseases

Services Of Industrial Safety DivisionServices Of Industrial Safety Division• Main object is ensure Safety, Health & Welfare at Each workplace by

enforcing the Factories ordinance of Sri Lanka.

• Investigate the » Fatal & Serious accidents at work places » Prevent the reoccurrence» Consultation, Recommendation & supervision until injured person or

dependent receive Compensation.

• Inspect workplaces on Safety, Health and welfare to ensure the compliance with the above Ordinance.

• Investigate the complaints by workers , trade unions,etc,…

• Inspection of high risk machinery at workplaces

• Conduct Safety & Health (including employment injury & injury Insurance) Awareness Programmes to employers and employees.

• Execute legal Action on the contraventions of Factories Ordinance

Fatal Accident due to blasting a grinding wheel

Office Of the Workmens’ CompensationOffice Of the Workmens’ Compensation

Main Function

To afford the necessary facilities to obtain compensation for the worker or his /her dependant in the case of an accident, illness or death of such worker occuring while engaged in employment or as a result of such employment.

Compensation Can be ObtainedCompensation Can be Obtained By establishing that the accident or illness caused to the worker was

due to solely being engaged in the particular employment.

When the accident was not due to the influence of liquor or narcotics

Unless it is an occurrence due to non- compliance of orders.

Not an incident due to the non-use of protective equipment provided.

Application should be made within two years of the Occurance of the accident/ death.

All Compensations coming under the Worker’s Compensation Ordinance No 19 of 1934

Schedule IV

Quantum of CompensationUS $

Monthly WageIn the event of a death

of works

In the event of permanent and complete disablement

Half Monthly payment of compensation

(Temporary Disablement )

0 - 25 1816 1960 13

25 - 50 2586 2950 18

50 - 75 3310 3515 22

75 - 100 4070 4445 27

100 - 125 4785 5196 32

125 - 150 5225 5500 35

150 - 175 5496 5500 40

175 - 200 5500 5500 42

200 or Above 5500 5500 55

Number Of Industrial Accidents Settled and Compensation Paid 1994 - 2009

Year

Number of Industrial Compensation Paid

Accidents Settled US $

Fatal Non – Fatal Total

Fatal(X 1000)

Non – Fatal(X 1000)

Total(X 1000)

1994 129 426 555 154.06 136.90 290.98

1995 145 500 645 182.29 146.09 328.41

1996 117 225 342 280.08 159.72 439.84

1997 145 489 634 189.30 151.35 340.67

1998 141 389 530 196.83 113.97 310.82

1999 139 237 376 117.19 30.99 148.20

2000 176 259 435 255.44 64.25 319.72

2001 166 292 458 240.02 69.05 309.09

2002 163 250 413 224.53 106.37 330.92

2003 139 185 324 210.05 45.88 255.95

2004 129 156 285 195.33 32.44 227.78

2005 177 101 278 320.41 28.23 348.67

2006 222 218 440 398.70 32.62 431.34

2007 186 90 276 580.63 34.83 615.51

2008 156 109 265 530.38 58.17 588.59

2009 185 120 305 622.68 55.24 677.96

Finance for Employer Injury Finance for Employer Injury Insurance SchemeInsurance Scheme

• The employer has to pay according to the schedule and Compensation Act.

• Private Insurance Co. run as W.C Insurance Scheme

( only employer contributes)

• No compulsory insurance scheme for company workman compensation

Challenges Facing Improving EIIChallenges Facing Improving EII• Lack of knowledge of employers & employees• Weakness of existing Ordinance and lack of regulations

• Source of fund for Insurance

• Introduce Compulsory Insurance on Workman’s

Compensation

• Existing facilities are not sufficient to conduct awareness

programmes

• Medical coverage Insurance should be introduced