Corporate Law

Brief Review on the New Regulations on the Work Injury Insurance

Brief Review on the New Regulations on the Work Injury Insurance

 
Min Cho

The Regulations on the Work Injury Insurance (hereafter as referred to “the Regulations”) newly revised by the State Council came into implementation from January 1, 2011. The new Regulations make great changes to the original version of the regulations including 24 articles of substantial modification and 3 articles of new prescriptions which occupy 36% of the total 67 articles of the new Regulations. Study the new Regulations carefully, you can find the following distinctive characteristics:

I. Expand the application scope of the work injury insurance

Article 2 of the old regulation prescribes that all kinds of enterprises and individual industrial and commercial households who have employees shall participate in the work injury insurance. But as to the public service units, social institutions, enterprises not invested by private persons, fund, law firm and accounting firm, whether they should buy work injury insurance for their employees is not ascertained by the old regulation, which causes a lot of disputes. The new Regulations put all these unascertained part to the application scope of the work injury insurance.

 

II. The new Regulations increase the work injury insurance treatment for the injured employees and their lineal relatives.

The purpose of participating in the work injury insurance is for precaution of work injury and protection of the interests of the injured employees. Along with the economic development of our country, the work injury insurance treatment prescribed in the old regulations is not sufficient to protect the interests of injured employees and their lineal relatives. Hence, the new Regulations increase the work injury insurance treatment:

[1] the lump sum disabled compensation fund for injured employee who suffered injury of 1-4 grade is increased by 3 months of salary of the injured employee; the lump sum disabled compensation fund for injured employee who suffered injury of 5-6 grade is increased by 2 months of salary of the injured employee; the lump sum disabled compensation fund for injured employee who suffered injury of 7-10 grade is increased by 1 month of salary of the injured employee.

[2] According to the old regulations, the lineal relatives of the employee who dies of work injury can obtain a lump sum compensation fund at the amount of 48-60 months of the monthly average salary of the employees within the same region. Due to the regional difference in economical development level, there is a great gap in average salary between the developed regions and the poor regions, which causes unfairness in compensation standard. So the new Regulations unify the compensation standard for employee who dies of work injury at the amount of 20 times of the average income of the urban resident of the state, which