Estimating and Calculating

Costs of Workplace Accident

in Agriculture Industry

Anita Abd Rahman, Mohd Rafee Baharudin, Azizah Ahmad, Harun Bakar,

Afida Miskam, Solehan Azmi, Saiful Anuar & Ahmad Fuad Mansur

Presentation Outline

Introduction

Objectives

Methodology

Results

Conclusion

Introduction

In the context of OSH, the term ‘agriculture’ is

generally used in a broad sense including all activities

directly related to cultivating, growing, harvesting and

primary processing of agricultural products, animal

and livestock breeding including aquaculture, and

agroforestry.

The term also refers to all agricultural undertakings,

irrespective of size.

Introduction

Agriculture ranks among the most hazardous

industries.

Farmers are at very high risk for fatal and nonfatal

injuries.

Farming is one of the few industries in which family

members (who often share the work and live on the

premises) are also at risk for fatal and nonfatal injuries.

Introduction

In Malaysia, agriculture sector, the 4th largest

contributor to the GDP of RM 57 M.

• The 3rd largest industrial employment in Malaysia.

• The level of OSH compliance is still an issues to be

look into.

Introduction

The variable working conditions in agriculture can be

compressed into some specific features, which increase

the risk of occupational accidents :

The work is carried out in the open air, exposing the

workers to climatic conditions.

The work is of a seasonal nature and certain tasks are

urgent in specific periods.

Introduction

A variety of tasks must be performed by the same

person.

There is great variation in working postures and the

length of the tasks performed.

and many others.

Introduction

The right to be safe and healthy has been

acknowledged as a matter of national and international

interest.

Recently, there was an interest in the economics of

OSH which focusing on estimating costs in a

workplace accidents.

Introduction

The general approach taken in aggregate OSH cost

research is from the bottom-up, generating totals for

fatal and nonfatal work-related injuries and illnesses,

identifying a range of worker, employer and social

costs, and matching costs to incidents.

Introduction

Employer costs

Collateral damage to equipment and materials.

Downtime. (the production process may be halted due

to an accident).

Absence of the insured or sick worker.

Negative effects on coworkers. Coworkers may be

distracted or suffer a loss of morale as a result of an

injury or illness episode.

Introduction

Employer costs

Reduced productivity when workers’ health is impaired.

Costs of administrative response.

Additional recruitment costs.

Introduction

Worker costs

direct financial cost arises when workers must pay for

medical care and pharmaceuticals without being fully

reimbursed by either the employer or employment

injury insurance schemes.

Introduction

Costs to society

costs of administering the public OSH system

claims on insurance systems other than

employment injury insurance

Introduction

Accident Data in Agriculture Sectors

2011 2012

2375

cases

2267 cases

- Fatal = 55 workers

- Disability = 2212 workers

(Statistics of Labor and Human Resources,

2012).

Objective

The main objective of this study is to estimate and

calculate the cost of workplace accidents (costs to the

employer, workers and society) in the agricultural industry.

Methodology

Type of study

Cross-sectional study (12 months period)

20 case studies

Study Location

Region States

Northern Perak, Perlis, Kedah, Penang

Central Selangor, Wilayah Persekutuan, N. Sembilan

Southern Melaka, Johor

Eastern Kelantan, Terengganu, Pahang

Borneo Sabah, Sarawak

Study Population

Conceptual framework

Inclusive Criteria

Only SOCSO’s.

Industrial classification codes of 01111, 01115 and

01117.

Completed cases for the year 2012.

Sample size

540 respondents

case study

Sample size by region

Region Cases

Northern 126

Central 154

Southern 61

Eastern 70

Borneo 56

Total 540

Sample size by sector

Sector Cases %

Palm oil 401 85.9%

Rubber 17 3.6%

Paddy 16 3.4%

Palm oil & Rubber 33 7.1%

Total 540 100%

Study Instruments Records of cases

Questionnaires (reliability of 0.89)

Interview

Formula Conceptual

Framework

Calculation of Costs

Results

Gender Distribution

Nationality vs Agric. Sector

Oil Palm Rubber Paddy Total

Local 209 36 16 466

Foreign 258 21 - 74

Total 467 57 16 540

Type of Injury vs Nationality

Type of injury Local (%) Foreign (%) Total (%)

TD 212 (81.2) 235 (84.2) 447 (82.7)

PD 31 (11.9) 19 (6.8) 50 (9.3)

F 18 (6.9) 25 (9.0) 43 (8.0)

261 (48.3) 279 (51.7) 540 (100)

Accident cost according to types of

accident (Sch. 9 NADOPOD) Cod

e

Description Mean Min Max

100 Fall of persons 6,982.52 65 168,340.4

200 Struck by falling objects 1,751.18 70.04 29,885.32

300 Stepping on, striking against or struck by

objects including falling objects

17,267.19 106.52 549,526.9

400 Caught in or between objects 1,846.06 102.84 13,813.66

500 Overexertion or strenuous movements 70,466.45 389.55 270,022.7

800 Exposure to or contact with harmfull

substances or radiations

875.14 115 6,905.91

900 Other types of accident, not elsewhere

classified,

26,910.88 86.78 453,602.2

Accident cost according to types of

injury (Sch. 10 NADOPOD)

Code Description Mean Min Max

10 Fractures 7,108.87 70.04 64,060.47

20 Dislocation 3,183.17 202.26 25,276.79

25 Sprains and strain 2,705.77 87.27 29,885.32

30 Concussions and other internal injuries 92,267.83 142.17 549,526.9

41 Other wounds 9,180.79 86.78 364,923.9

50 Superfial injuries 1,333.25 105.78 25,445.71

55 Contusions and crushings 36,051.4 96.66 342,926.7

TD Cost (employer)

Type of cost RM

Direct

Damage cost 6,298.00

Medical cost 16,508.00

Funeral management cost 0.00

Indirect

Employer extra payment cost 33,12.43

PERKESO extra payment 57.95

Production reduction cost 83,457.14

Investigation cost 24,614.00

Total 13,4247.52

TD Cost (worker)

Type of cost RM

Direct

Damage cost 16,247.00

Medical cost 1,741.00

Funeral management cost 0.00

Indirect

Unpaid payment cost 67,045.81

Lost future income cost 0.00

Rehabilitation cost 2,066.00

Travelling cost 5,991.00

Total 93,090.81

TD Cost (society)

Type of cost RM

Direct

Compensation cost 93,089.92

Medical cost 13,811.00

Funeral cost 0.00

Indirect

Rehabilitation cost 19,405.00

Future compensation cost 0.00

Total 12,6305.92

TD Cost Summary

Variables RM RM

Total Direct Cost 147,694.92 120,585.69

Total Indirect Cost 205,949.33 305,996.86

Grand Total 353,644.25 426,582.55

Ratio (Direct: Indirect) 1 : 1.4 1 : 2.54

Cost/worker 1,768.22 1,815.24

PD Cost (employer)

Type of cost RM

Direct

Damage cost 0.00

Medical cost 1,200.00

Funeral management cost 0.00

Indirect

Employer extra payment cost 490.97

PERKESO extra payment 8.59

Production reduction cost 124,600.00

Investigation cost 3,593.42

Total 129,892.98

PD (worker)

Type of cost RM

Direct

Damage cost 2,755.00

Medical cost 0.00

Funeral management cost 0.00

Indirect

Unpaid payment cost 7,040.23

Lost future income cost 11,7558.81

Rehabilitation cost 3,987.00

Travelling cost 3,160.00

Total 134,501.04

PD Cost (society)

Type of cost RM

Direct

Compensation cost 318,230.45

Medical cost 6,578.90

Funeral cost 0.00

Indirect

Rehabilitation cost 6,555.00

Future compensation cost 92,159.94

Total 423,524.29

PD Cost Summary

Variables RM RM

Total Direct Cost 328,764.35 74,874.29

Total Indirect Cost 359,153.96 266,387.00

Grand Total 687,918.31 341,261.29

Ratio (Direct: Indirect) 1 : 1.03 1 : 3.56

Cost/worker 22,190.91 17,961.12

F Cost Summary

Variables RM RM

Total Direct Cost 25,688.88 442,099.00

Total Indirect Cost 3512,275.54 138,860.32

Grand Total 3,537,964.42 580,959.32

Ratio (Direct: Indirect) 1: 1.4 1 : 0.31

Cost/worker 252,711.74 23,238.37

Employer

Type of cost RM

Direct

Damage cost 23,445.00

Medical cost 44,266.00

Funeral management cost 13,850.00

Indirect

Employer extra payment cost 6,607.52

PERKESO 115.84

Production lost cost 87,6371.43

Investigation cost 83,776.41

Total 1,048,432.20

Worker

Type of cost RM

Direct

Damage cost 20,232.00

Medical cost 3,666.00

Funeral management cost 3,520.00

Indirect

Payment cost 110,684.04

Daily Wages cost 117,558.81

Rehabilitation cost 8,612.00

Travel cost 12,433.00

Total 276,705.85

Society

Type of cost RM

Direct

Compensation cost 897,558.30

Medical cost 34,529.90

Funeral cost 120,000.00

Indirect

Rehabilitation cost 44,910.00

Future compensation cost 352,8978.96

Total 462,5977.16

Cost Summary

Variables RM

Total Direct Cost 1,161,067.20

Total Indirect Cost 4,790,048.01

Grand Total 5,951,115.20

Ratio (Direct: Indirect) 1 : 4.13

Cost/worker 11,357.09

Examples of case study

No Incident descrip. RM Control measures RM

1 TD Falling while cutting

grass

3,203.14 Administrative control

(additional working

schedule routine)

810.00

2 TD Palm frond drop onto

head

821.53 Personal Protective

Equipment (helmet)

420.00

3 TD Fertilizer fall on victim

while removing/drop

fertilizer from lorry

11,632.36

Eliminate & engineering

control

(close the drain and build

fertilizer store)

40,000.00

4 TD Victim accidentally

kick a stump while

carrying oil palms by

using trolley

646.50

Engineering control (mini

tractor)

35,000.00

5 PD Palm frond hit the

eyes

170,948.36

Personal Protective

Equipment

(goggles)

41,760.00

No Incident descrip. RM Control measures RM

6 PD Chemical spillage

9,458.87 Administrative control

-Safety talk

126.00

7 F Workplace accident

453,602.16 Eliminate

Administrative control

2,012.00

Conclusion

Estimation and calculation of agriculture workplace

accident has a great variance between cases.

Indirect cost 4 times higher than the direct cost

An organisation should starts estimate and calculate

the costs of workplace accident as to prevent further

economic losses and investing on prevention control

measures.

Make used of OSHACC.