1

Małgorzata PęciłłoCentral Institute for Labour Protection – Central Institute for Labour Protection – National Research InstituteNational Research Institute

Izabela Rydlewska-LiszkowskaNofer Institute of Occupational MedicineNofer Institute of Occupational Medicine

Accident insurance due to Accident insurance due to accidents at work and accidents at work and occupational diseasesoccupational diseases in Poland in Poland

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Social insurance system in Poland

Pension insurance Disability insuranceSickness insuranceWork accident insurance (workers

compensation insurance)

Total spending - 35 billion Euro (13% of Poland’s GDP and 70% of public budget))

Act on social insurance due to accidents at work and occupational diseases

in force since 1 January 2003in force since 1 January 2003

provides for insurance coverage of the consequences of work accidents and occupational diseases.

Commuting accidents are covered by a different type of social insurance.

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Work injuries

Occupationaldiseases

Commutingaccidents*

51%

9%

40%

Total expenditure - about €1 200 million

Spending from Workers Compensation Fund (by

Social Insurance Institution)

*Only spendings resulting from commuinitg accidents occured before 1 Jan 2003

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Benefits in the system of Benefits in the system of accident insurance (1)accident insurance (1)

Work incapacity pensionWork incapacity pension Survival’s pensionSurvival’s pensionOne-off compensation One-off compensation for the insured for the insured

personpersonOne-off compensation One-off compensation for the survivorfor the survivorInjuryInjury (sickness)(sickness)benefitbenefit Rehabilitation allowanceRehabilitation allowance

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Benefits in the system of Benefits in the system of accident insurance (2)accident insurance (2)

Compensation allowanceCompensation allowance Providing for the cost of dental Providing for the cost of dental

treatment, protective vaccination treatment, protective vaccination and orthopaedic dressing and orthopaedic dressing

TTraining pensionraining pensionAllowance to supplement survival’s Allowance to supplement survival’s

pension for a complete orphanpension for a complete orphan

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Person entitled: Person entitled: Insured, whose incapacity Insured, whose incapacity to work to work is is caused by accident at work or caused by accident at work or occupational diseaseoccupational disease

Vested:Vested: Regardless of time of being insuredRegardless of time of being insuredFrom the first day of incapacity to workFrom the first day of incapacity to work

Level of benefit: Level of benefit: 100% of assessment100% of assessmentBasis of assessment = Basis of assessment = amount being amount being basis of assessment of accident insurance basis of assessment of accident insurance premiumpremium

Sickness benefitSickness benefit

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RRehabilitation benefitehabilitation benefitPerson entitled: Person entitled: Insured person, Insured person, who after draining sickness benefit who after draining sickness benefit is still incapable to work, and is still incapable to work, and treatment or rehabilitation promise treatment or rehabilitation promise recovering capacity to workrecovering capacity to work

Level of benefit: Level of benefit: 100% of basis of 100% of basis of assessmentassessment

Basis of assessment Basis of assessment = amount = amount being basis of assessment of being basis of assessment of accident insurance premiumaccident insurance premium

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One-off compensation One-off compensation for for the insured personthe insured person

Person entitled: Person entitled: Insured person, Insured person, who experienced permanent or who experienced permanent or long-lasting health losslong-lasting health loss

Level of benefit Level of benefit (effective from (effective from April 1, 2007): 20% of average April 1, 2007): 20% of average salary per each per cent of salary per each per cent of permanent or long-lasting health permanent or long-lasting health lossloss  

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One-off compensation One-off compensation for the for the survivorsurvivor

Person entitled: Person entitled: Deceased insured Deceased insured person’s or pensioner’s family membersperson’s or pensioner’s family members

Level of benefit: Level of benefit: depends on the depends on the number of deceased insured person’s or number of deceased insured person’s or pensioner’s family members entitled to pensioner’s family members entitled to one-off compensationone-off compensation

Spending from Workers Compensation Fund (by Social

Insurance Institution)Total expenditure - about € 1 200 million,

Work incapacity pensions

Survivors pensions

One off compensations

Sickness benefits

Rehabilitation allowance(monetary)

7%13%

73%

6%

The insurance premium is differentiated at a branch and company levels

THE INSURANCE PREMIUM

The insurance premium depends on rates (per 1000 workers) of:

accidents at work (total) fatal and serious accidents at

work occupational diseases workers exposed to harmful

working conditions

1 January 2003 - 31 March 2006: accident insurance premium was differentiated at branch level

differentiation range0,67% 3,60%

of contributory basis1 April 2006 - … accident insurance premium is differentiated at level of branches and companies: differentiation range - 20% + 20% of contributory basis

- 50% 1 April 2009 + 50%

Premium Premium differentiation in Polanddifferentiation in Poland

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Percentage rate of the premium Percentage rate of the premium

aamounts to 50% of the highest rate set for mounts to 50% of the highest rate set for the premium year in the premium year in - the premium - the premium totals 1,totals 1,6767% of the contributory basis% of the contributory basis

Rules to determine the percentage rate of the premium for work

accident insuranceUp to 9 persons insuredUp to 9 persons insured

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Percentage rate of the premium Percentage rate of the premium

iis differentiated according to the total s differentiated according to the total indicating indicating the accident frequency, that the accident frequency, that of fatal and serious accidents as well of fatal and serious accidents as well as the number of employees exposed as the number of employees exposed to to hazrdous working hazrdous working conditionsconditions

Rules to determine the percentage rate of the premium for work

accident insuranceAt least 10 persons insuredAt least 10 persons insured

Examples:Examples:

PKD code - Polish Classification of Activity

Activity group: Mining (energy sources)

PKD code: CA

Risk categories: 12 (previous 13)

Premium interest rate (%): 3.33 (previous 3.60)

Activity group: Building engineering

PKD code: F

Risk categories: 7

Premium interest rate (%): 2.00

Examples:Examples:

PKD code - Polish Classification of Activity

Activity group: Mining (energy sources)

PKD code: CA

Risk categories: 12 (previous 13)

Premium interest rate (%): 3.33 (previous 3.60)

Activity group: Building engineering

PKD code: F

Risk categories: 7

Premium interest rate (%): 2.00

Activity group: Health protection and social service

PKD code: N

Risk categories: 5

Premium interest rate (%): 1.47

Activity group: Hotels and restaurants

PKD code: H

Risk categories: 2 (previous 3)

Premium interest rate (%): 0.90 (previous 0.93)

Activity group: Health protection and social service

PKD code: N

Risk categories: 5

Premium interest rate (%): 1.47

Activity group: Hotels and restaurants

PKD code: H

Risk categories: 2 (previous 3)

Premium interest rate (%): 0.90 (previous 0.93)

Accident insurance system Accident insurance system as an economic incentive as an economic incentive

for improving OSH for improving OSH performance in enterprises? performance in enterprises?

10.04.23 1919Source: D. Podgórski, Analysis of managment decisions on implementing OSH MS, CIOP-PIB 2008

What motivates companies to implement OSHMS?

External factors motivating improvements – evaluation of the most senior managers

20

0

1000

2000

3000

4000

5000

6000

7000

A B C D E F In totalCompanies

PL

N

OSH MS implementation

OSH MS maintaining

Legal requirements

Costs of fulfilling legal requirements and Costs of fulfilling legal requirements and additional costs of implementing and additional costs of implementing and

maintaining OSH MS maintaining OSH MS in companies (per 1 worker, yearly) in companies (per 1 worker, yearly)

Source: J. Rzepecki: Costs and benefits of implementing OSH MS in company, 2006

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Costs of implementing and maintaining OSH MS Costs of implementing and maintaining OSH MS and benefits resulting from decrease in insurance and benefits resulting from decrease in insurance premium in companiespremium in companies

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

1 2 3

Companies

PLN

OSH MS implementation

OSH MS maintaining

Benefints from lowerinsurance premium

Source: J. Rzepecki: Costs and benefits of implementing OSH MS in company, 2006

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Benefits resulting from Benefits resulting from implementation implementation of OSH MS in companies of OSH MS in companies

Accident rates have significantly decreased in 70% of companies implementing OSH MS

Number of employees working in hazardous condisions (in which exposure exceed MAC or MAL) has decreased in 50% of companies

Lower insurance premium in 70% of companies implementing OSH MS

Increase in quality, productivity and awareness

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Other publications:Rydlewska-Liszkowska I. : Cost and benefits of the medical prevention

in Polish enterprises. W: Cost and benefits of occupational safety and health. Proceedings of the European Conference on Cost and Benefits of Occupational Safety and Health 1997, The Hague, 28-29 May, 1997. Ed. Mossink J., Licher F. [Amsterdam]: [b.w.] [1998] s. 328-332

Rydlewska-Liszkowska I.: Health and safety economics: limitations of economic appraisal of occupational health services activities in Poland. Int. J. Occup. Med. Environ. Health 2002 Vol. 15 nr 2 s. 193-197

Rydlewska-Liszkowska I.: Economic incentives for prevention in occupational health. In: Health protection and economy. Warsaw University Scientific Publications, Warsaw 2008, pp.232-242

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