Cape Town

1 June 2004

Compensation Fund

Overview

Achievements

Challenges

Key Priorities 2004/5

Statistics

Budget

Mandate

Legislation: Compensation for Occupational Injuries and Diseases Act (Act 130) of 1993, amended by Act 61 of 1997

Objective: provide compensation to employees for diseases contracted and injuries sustained as a result of and in the course of employment or, in fatal cases, to their dependants, and for matters connected therewith

Structure

According to COIDA, DG is the accounting officer.

Compensation Commissioner administers COIDA on behalf of the DG using delegated powers

The chief financial officer of the Compensation Fund administers PFMA on behalf of the DG, using powers delegated according to PFMA and Treasury Instructions.

Main tasksRegistration of employers and allocate them to industry classes based on the nature of their businessObtain employers’ returns of earnings annuallyRegistration, processing and payment of claims for injured employers Assessing and collecting the assessments from employersPaying the cost of medical treatment provided to injured employeesAdministration of the pension account and payment of monthly pensions separatelyInvesting all excess funds until they are needed

Policies

Noise induced hearing loss (171) 2001- Addressed underreporting

Post traumatic stress disorders (172) – too many claims, saved from paying salaries and / or consultation fees, in addition to pensions

Mesothelioma (173) – alignment with ODMWA

Occupational asthma (176)

Irritant induced asthma(177)

Policies

TB in health workers (178)

Repetitive strain injuries (180)

Work related upper limb disorders – clarify information required and clarify claiming procedures

Schedule 3 of COIDA

Alignment with ILO Recommendation 194

Role of Compensation Board

Tripartite consultationBrought in technical assistance from experts in occupational diseasesAdvise Minister on:

Policy mattersAnnual benefit increasesAppointment of assessors (for legal process)Amendment of Act

Provincial medical advisory panels

General policy on occupational diseases

Assist with diagnosis of occupational diseases

Established pilot in Cape Town

Chaired by Prof Neil White

Improvement in benefits

Strive to provide inflationary increases annuallyDistribution of surplus accumulated in pension account – to COIDA pensionersInclude salaries up to the maximum Consider the minimum earnings in calculating COIDA benefitsMaximum burial benefits revised annually

Challenges

Maintain solvency of the Fund

Dealing with existing backlogs and preventing them building up in the future

Rising cost of medical treatment

Claims for post traumatic stress disorders

Key priorities

Monitor the impact of the policies through the processed claims for occupational diseases

Develop a protocol for compiling statistics on occupational diseases

Improve revenue collection

Eliminate backlogs on claims

Roll out the provincial medical advisory panels

Appointment of assessors for the legal process

Financial management

Revenue generation from employers R2,5 billion

Benefits to employees – R467 million

Benefits to dependants and for permanent disability – R296 million

Cost of medical treatment R1,32 billion

Statistics for April – May 2004

Assessments raised – 42 810

New registrations – 7 424

Revenue collected R332 million

Compensation benefits paid – R94 million

Medical payments – R163 million

Pensions R56 000 (22 000)

Claims for occupational diseases finalised -1 519