XN000022-1993-05-14 — Page 7

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FRIDAY, MAY 14, 1993

MAXIMUM COMPENSATION FOR WORK INJURIES RAISED

LEVEL

THE LABOUR DEPARTMENT HAS PROPOSED TO RAISE THE MAXIMUM OF COMPENSATION FOR INJURIES RESULTING FROM EMPLOYMENT-RELATED ACCIDENTS IN ORDER TO INCREASE THE COMPENSATION PAYMENT то INJURED EMPLOYEES.

THE PROPOSAL,

} WHICH IS INCLUDED IN THE EMPLOYEES COMPENSATION (AMENDMENT) BILL 1993 GAZETTED TODAY (FRIDAY), HAS BEEN ENDORSED BY THE GOVERNOR IN COUNCIL.

THE

UNDER THE

ASSISTANT COMMISSIONER FOR LABOUR, MRS ANGELA HO, SAID

EXISTING EMPLOYEES' COMPENSATION ORDINANCE (ECO), COMPENSATION FOR PERMANENT TOTAL INCAPACITY OR DEATH VARIES WITH AGE AND THE MONTHLY EARNINGS OF THE EMPLOYEES CONCERNED.

THE

"THE AMOUNT OF COMPENSATION PAYABLE IS SUBJECT TO A STATUTORY MAXIMUM, WHICH IS $620,000 AND $540,000 FOR PERMANENT TOTAL INCAPACITY AND DEATH RESPECTIVELY," MRS HO SAID.

"FOLLOWING A RESEARCH ON INJURY CASES INVOLVING PERMANENT INCAPACITY, IT WAS FOUND THAT THE COMPENSATION ENTITLEMENT OF ABOUT 47 PER CENT OF CASES HAD BEEN SUPPRESSED AS A RESULT OF THE APPLICATION OF THE STATUTORY MAXIMUM TO THE COMPUTATION OF COMPENSATION PAYABLE.

"THIS WAS PARTICULARLY SERIOUS FOR THE YOUNGER EMPLOYERS BECAUSE OF THE AGE FACTOR, SHE ADDED.

IN ORDER TO IMPROVE THE COMPENSATION PAYMENT TO INJURED EMPLOYERS AND RETAIN THE SPIRIT OF LIMITING EMPLOYERS' LIABILITY IN A NO-FAULT COMPENSATION SYSTEM, THE LABOUR DEPARTMENT HAS PROPOSED ΤΟ INTRODUCE A RATE OF MONTHLY BARNINGS, PROPOSED TO BE SET AT A CEILING OF $15,000, FOR THE PURPOSE OF CALCULATING COMPENSATION.

"UNDER THIS PROPOSAL THE MAXIMUM LEVEL OF COMPENSATION BE $1.44 MILLION FOR PERMANENT TOTAL INCAPACITY AND $1.26 MILLION DRATH, MRS HO SAID.

WOULD FOR

**THE CEILING OP $15,000 IS IN LINE WITH THAT USED FOR CALCULATING SEVERANCE PAYMENT AND LONG SERVICE PAYMENT UNDER THE EMPLOYMENT ORDINANCE," SHE ADDED.

ΤΟ

ΤΟ

IN ORDER TO ALLOW SUFFICIENT LEAD TIME FOR THE INSURANCE INDUSTRY TO NEGOTIATE RE-INSURANCE CONTRACTS WITH RE-INSURERS DUE THE POTENTIALLY HIGHER PAY-OUT COMPENSATION RATES IT IS PROPOSED CHANGE THE LEVEL OF COMPENSATION FROM JANUARY 1, 1994, IF THE BILL IS PASSED INTO LAW IN THE CURRENT LEGISLATIVE COUNCIL SESSION, MRS HO NOTED.

SHE POINTED OUT THAT THE BILL ALSO INCLUDE AMENDMENTS то THE CLAIM PROCEDURES AND THE ASSESSMENT OF PERMANENT INCAPACITY.

AGAINST THE

AT PRESENT, AN INJURED EMPLOYEE OR DEPENDANTS OF A DECEASED EMPLOYEE ARE ALLOWED TO CLAIM COMPENSATION DIRECTLY EMPLOYER'S INSURER.

/HOWEVER, THE