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Q&A on the Newly Revised Regulations on Work-related Injury Insurance

2016-11-01View Original

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Preface to the Q&A on the newly revised Regulations on Work-related Injury Insurance: On December 20, 2010, the State Council issued the Decision on Amending the Regulations on Work-related Injury Insurance; the newly revised regulations will come into force on January 1, 2011. The Work Injury Insurance Division of the Provincial Department of Human Resources and Social Security provided answers to questions regarding the new Regulations.   Question: What are the main significance and roles of the new Regulations upon their promulgation and implementation?   Answer: The revision of the Regulations on Work-related Injury Insurance is not only a concrete manifestation of implementing the people-oriented scientific development concept, but also an important part of implementing the newly enacted Social Insurance Law. It is of great significance for improving the work-related injury insurance system, better protecting the legitimate rights and interests of workers, dispersing risks for employers, establishing harmonious labor relations, and promoting the construction of a harmonious socialist society.   Firstly, it helps to better protect the vital interests of workers who have suffered work-related injuries.   The implementation of the new regulations can fully protect the legitimate rights and interests of workers who have suffered work-related injuries and their families, reduce the social conflicts arising therefrom, and effectively promote social harmony and stability.   Secondly, it helps to spread the risks of work-related injuries among employers and reduce their burden. The new regulations include organizations such as public institutions, social groups, and private non-enterprise units within the scope of work-related injury insurance. Through a work-related injury insurance system based on social pooling, the financial costs associated with workers who suffer work-related injuries are distributed among these organizations, thereby reducing their administrative burdens. The new regulations also shift some of the benefits that were previously paid by employers to the work-related injury insurance fund, thereby standardizing the benefits for workers who suffer work-related injuries. This ensures that such benefits are disbursed in a timely manner and boosts companies’ willingness to participate in work-related injury insurance.   Third, it helps to accelerate the improvement of the work-related injury insurance system. The introduction and implementation of the new regulations have finally established a work-related injury insurance system framework that integrates prevention, compensation, and rehabilitation. This helps to accelerate the transition of China’s work-related injury insurance system from focusing solely on post-incident compensation to giving equal emphasis to both post-incident compensation and preventive measures, as well as from treatment-oriented rehabilitation to a rehabilitation approach centered on vocational recovery aimed at helping workers return to society. By improving the work-related injury insurance system, it also ensures the rights and interests of workers on a fundamental level.   Question: What are the main highlights of the revised Regulations this time?   Answer: The new Regulations have made a series of adjustments to better protect the rights and interests of employees. The new Regulations have the following six key features: First, it expands the scope of application for work-related injury insurance. The scope of application of work-related injury insurance has been expanded to various public institutions and social organizations that are not governed by the Civil Servant Law, as well as private non-enterprise units, foundations, law firms, accounting firms and other organizations, thereby eliminating, on a systemic level, the concerns of these entities and their staff regarding the risk of work-related injuries.   Second, it has adjusted and expanded the scope of work-related injury recognition. The scope of coverage has been expanded from injuries resulting from motor vehicle accidents on the way to and from work to include traffic accidents in which the individual is not primarily at fault, as well as injuries from accidents involving urban rail transit, passenger ferries, and trains, thereby benefiting more workers.   Third, the procedures for determining work-related injuries have been simplified. The new regulations eliminate the requirement for administrative reconsideration as a prerequisite in handling disputes over work-related injury determinations, thereby reducing the time required to determine such injuries ; A simplified procedure for determining work-related injuries has been established; for applications regarding work-related injuries whose facts are clear and on which there is no dispute between the parties, the time limit for making a decision has been reduced from the originally specified 60 days to 15 days.   Fourth, workers’ compensation benefits have been significantly increased. The standard for the one-time death benefit in case of work-related death has been increased from 48 to 60 months of the average monthly wage of employees in the relevant region in the previous year, to 20 times the per capita disposable income of urban residents nationwide in the previous year ; At the same time, the one-time disability benefits for workers with disabilities were adjusted; the amounts of these benefits for workers with disabilities classified in grades 1 to 4, 5 to 6, and 7 to 10 were increased by 3 months, 2 months, and 1 month of their own salary, respectively.   Fifth, fund expenditure items have been added. Drawing on international experience and effective practices, it stipulates that costs related to publicity and training for work injury prevention shall be covered by the fund, and authorizes our department, in conjunction with departments such as finance, health, and work safety supervision, to establish rules regarding the proportion of funds allocated for work injury prevention, as well as the methods for their use and management. The \"hospital meal allowance\" for workers injured at work, which was previously paid by the employer, as well as the expenses for transportation, accommodation, and meals when seeking medical treatment outside the designated area, and the one-time medical subsidy upon termination or dissolution of the employment relationship, will now be paid uniformly by the work-related injury insurance fund.   Sixth, the enforcement has been strengthened. The new regulations introduce new provisions stating that payment of medical expenses for treating work-related injuries shall not be suspended during administrative reconsideration or administrative litigation, thereby enabling workers who have suffered work-related injuries to receive timely treatment and also helping to curb malicious lawsuits by certain employers through institutional mechanisms. Administrative penalty provisions have been added for employers that do not participate in work-related injury insurance or refuse to cooperate with investigations and verifications related to the determination of work-related injuries, thereby increasing the enforcement strength of such insurance.

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