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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
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Workers’ CompAround 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…
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
Introduced to International Claims Management Hong Kong Disneyland
Workers’ Comp Around the World Hong Kong Claims Team
Hong Kong • 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…
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 • 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
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
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
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 A Government scheme attached to social security, and often the social medical system
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: • 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 • 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…