workers’ comp around the world or i’m glad to be in america tim east the walt disney company...

Workers’ CompAround the World

Or

I’m glad to be in America

Tim EastThe Walt Disney Company

WCCP ConferenceHammock 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


But in some ways things are very difference outside the United States…

Outside the United States…


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

http://wtc7lies.googlepages.com/Kader.jpg/Kader-full.jpg

Kadar Toy Factory Fire

• 188 Workers Killed• 469 Injured• 40 minutes before first

response arrived

Fallout of the Tragedy

Introduced to International Claims Management

Hong Kong Disneyland

http://z.about.com/d/gohongkong/1/0/r/1/-/-/Hong_Kong_Disneyland_maingate.jpg

Hong Kong Disneyland - 1999

Unique Exposures

Finding HKDL by Car

Arriving by Train

The City of Hong Kong


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…

Bamboo Scaffolding

Unique Safety Equipment

Subrosa is very difficult

Management Responsible to Maintain Good Fortune

Opening Day

September

2005


One thing I learned: Understanding cultural issues is critical!

Cultural Differences

Cultural misteps or offenses can derail a project or risk management program

Singapore

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

Condition in Summary Sample Medical Conditions Subsidy for injury & disability (Lump Sum)

Injury & Disability subsidy/allowance (by month)

Nursing Allowance (if applicable) (By month)

Medical subsidy (Lump Sum)

Death /Funeral Subsidy (Lump Sum)

Injury & Disability subsidy/allowance (by month)

Re-Employment Subsidy for injury & disability (Lump Sum)

Grade 1 Loss of an organ or complete or irreplaceable loss of organ function; requiring special medical care and support; complete loss or serious loss of the ability to care for oneself.

Severe damage to cognitive functions and intelligence, loss of sight in both eyes.

27 month's salary (RMB135,000 / US$21,600)

90% salary (RMB4,500 / US$720 per month)

Grade 2 Severe damage to or deformity of an organ; serious functional deficiencies or complications; requiring special medical care and support; complete loss or serious loss of ability to care for oneself.

Serious damage to cognitive intelligence; loss of sight in one eye and less than or equal to eight percent of normal vision in the other.



Grade 3 Severe damage to or deformity of an organ; serious functional deficiencies or complications; requiring special medical care and support; partial loss of ability to care for oneself

Loss of a hand, dangerous and impulsive behavior caused by psychotic disorders; serious disfiguration on the face.



Grade 4 Severe damage to or deformity of an organ; serious functional deficiencies or complications; requiring special medical care and support but capable of self-care,

Psychotic diseases leading to social skills deficiencies; medium level of facial disfiguration and scars over 70 percent or more of the body.



Grade 5 Major damage to or deformity of an organ; major functional deficiencies or complications; requiring general medical care but capable of self care

Complete loss of speech; complete loss of ability to read and write; moderate facial disfiguration, loss of thumb.


18 months average salary of the city (RMB66,600 / US$10,800)



Grade 6 Major damage to or deformity of an organ; moderate level of functional deficiencies or complications; requiring general medical care but capable of self care.

Incomplete loss of speech, serious colourization or dis-colourization on the face.





Grade 7 Partial damage to or deformity of an organ; moderate functional deficiencies or complications; requiring general medical care but capable of self care.

Partial damage to thumb; loss of toes, except the big toe; removal of half the small intestine.




Grade 8 Partial damage to or deformity of an organ; moderate functional deficiencies; requiring moderate medical care but capable of self care

Change of personality due to psychotic disorders; speech difficulties.




Grade 9 Partial damage to or deformity of an organ; moderate functional deficiencies that do not require medical care

Damage to the skull with an area of less than 25 cm2.; loss of index finger. Loss of two toes, except the big toe.




Grade 10 Partial damage to or deformity of an organ; no functional deficiencies; not requiring medical care, and capable of self-care.

Damage to the skull with an area of less than 9.24 cm2.; loss of finger, except the thumb;




50% for those completely incapable of self-care, 40% for

those mostly incapable of self care - and 30%

for those partially incapable of self care based on the average

monthly employee salary in the city for the last year (50% - RMB1,850 /USD300,

40% - RMB1480, USD240, 30%-

RMB2,590, USD180 per month)

Amount payable by Employer

20 times average salary

of the city (RMB461,000 /

US$74,000)

Amount payable from PRC Social Scheme

Chinese PD Schedule

• 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

The “Compensation Calculator”

Germany• 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

Ein offerzung un zippen squatten

Common Approaches

– 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

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…

Judicial Systems

U.S.A.

Jury System

“Make the Best Argument”

Testimony

Contingency Fees

Foreign Jurisdictions

Judges

“Documentary Evidence”

“Find Truth”

Loser Pays

Claim Payments

U.S.A.

Economic Loss

Non-economic Awards

Punitive Damages

Runaway Verdict Possible

Foreign Jurisdictions

Economic Loss

Subject to Schedules

Not Likely

Costs Awarded by Judge

Summing it Up

The Global Claims Manager

Summing it Up

1. Go early and learn from others

2. Select a strong local advisor/broker

3. Establish and build relationships first

4. Be prepared to provide more submission details and information

5. Establish loss prevention expectations early

6. Visit in person as often as possible

7. Don’t underestimate cultural issues

Summing it Up

The Global Claims Manager

workers’ comp around the world or i’m glad to be in america tim east the walt disney company...

Documents

singapore slide

overseas slide

car slide

train slide

difficult slide

tragedy slide

workers compensation

common law slide