Circular of the Ministry of Labor on Print and Issuance of the Trial Measures for Work-Related Injury Insurance of Enterprises' Employees

Circular of the Ministry of Labor on Print and Issuance of the Trial Measures for Work-Related Injury Insurance of Enterprises' Employees


Circular of the Ministry of Labor on Print and Issuance of the Trial Measures for Work-Related Injury Insurance of Enterprises' Employees

Lao Bu Fa [1996] No. 266

August 12, 1996

Labor (labor and personnel) departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities separately designated in the State plan, social insurance bureaus of Shanghai Municipality, Guangdong Province, Wuhan City, and Xinjiang Production and Construction Corps,

In order to support the implementation of the Labor Law, we formulated the Trial Measures for Work-Related Injury Insurance of Enterprises' Employees (hereinafter referred to as "Trial Measures") which is hereby promulgated and shall be tentatively implemented as of October 1, 1996. On the implementation of the Trial Measures and improvement of the reform of work-related injury insurance system, we put forward the following opinions:

I. Enhancing Understanding, Strengthening Leadership. The reform of work-related injury insurance is of great practical significance to and profound influence on securing lawful rights and interest of employees, improving safety production, and maintaining social stability. All labor authorities shall pay close attention to the reform and shall practically strengthen the organization and leadership. The labor authorities and social insurance institutions at all levels shall have dedicated person to be responsible for the reform of work-related injury insurance system, understand the situation in a timely manner, and formulate and implement working system and specific measures. Please inform the Social Insurance Department of the Ministry of Labor of the working institutions responsible for implementing work-related injury insurance, with the names of the institutions, names of direct responsible person, contact telephone numbers and addresses by the end of September.

II. Making More Efforts, Accelerating Progress. At present, 1,100 cities and counties in 25 provinces and autonomous regions have implemented the reform of work-related injury insurance system. By the end of this year, we shall strive for that there will be 35 large-and medium-scale cities nationwide which realized the reform in accordance with the Trial Measures, with 50% coverage of cities and counties nationwide. By the end of this century, there shall be 90% and above cities and counties which realized the reform. The progress of reform in the coastal areas in South-East China and key cities can be even faster. All regions shall formulate the specific progress plans and shall implement them in time. All enterprises and their employees in cities and towns shall be covered by work-related injury insurance, and the region with favorable conditions may explore the specific measures for implementing work-related injury insurance in enterprises in townships.

III. Establish an Effective Mechanism, Facilitating the Combination of Work-Related Injury Insurance and Safety Production. The differential rates and floating rates shall be formulated sincerely and implemented strictly, and the safety production and the prevention of work-related injuries and occupational diseases shall be facilitated by encouragement and punishment mechanism of work-related injury insurance. In working, social insurance administrative authorities, safety supervision authorities and agencies engaged in work-related injury insurance shall sincerely perform respective duties, support and cooperate with one another; the responsible persons of labor (labor and personnel) departments and bureaus shall strengthen the leadership and coordination.

IV. Balancing Comprehensive Arrangement, Intensifying Fund Management. The insurance rate of work-related injury shall be determined on the careful and meticulous calculation. Currently, the average insurance rate of work-related injury is no more than 1% of total wage, with the objective to relieve the burden of enterprises as possible. At the same time, the payment of work-related injury benefit and the social service items as stipulated in the Trial Measures shall be ensured so as to overcome and prevent excessive balance of funds. Any region in where the pilot reform is carried out shall, in accordance with the Trial Measures, regulate various benefit standards and rates, re-measure and properly adjust the rates. In case of the regions in where the reform has been carried out for five years and above, the differential rates shall be adjusted by the end of this year.

V. Sincerely Implementing the Standard of Evaluating the Degree of Disability, Intensifying the Verification of Labor. State Administration of Quality and Technology Supervision has approved, printed and issued the Assessment and Gradation of Disability Caused by Work-Related Injuries and Occupational Diseases (GB/T16180-1996) which will be implemented in October this year. The regions in where the labor assessment authorities are not established yet shall establish such authorities as soon as possible to conduct the said assessment; the regions in where the said authorities are established shall also improve the organization structure and working system in accordance with the requirements provided for in the Trial Measures. All the personnel who are engaged in the labor assessment shall sincerely study and master the national standard for assessing and grading disabilities. Labor authorities shall organize special training and regular assessment aiming at particular situation, and shall take the result of assessment as an important reference for appointing and employing the personnel of labor assessment.

VI. Strengthening the Popularization, Expanding the Influence. All regions shall intensively popularize the basic principles, basic policy standards and implementation measures of work-related injury insurance and labor assessment by organizing popularization week, distributing popularization materials, TV lectures, consultation services, holding field meetings, and other forms, with the utilization of pilot effect and the local examples so as to make enterprises, employees and all walks of the society understand and support the reform of work-related injury insurance system.

The labor administrative authorities of all provinces, autonomous regions and municipalities directly under the Central Government shall, in accordance with these Measures and by taking into account the local particular situation, formulate implementation measures and shall submit them to the Ministry of Labor for reference. Should you have any experience and problems during implementation, please report to the Social Insurance Department of the Ministry of Labor.

Appendix:
Trial Measures for Work-Related Injury Insurance of Enterprises' Employees

Chapter I General Provisions
Chapter II Scope and Recognition of Work-Related Injury
Chapter III Labor Assessment and Gradation of Disability of Work-Related Injury
Chapter IV Benefit for Work-Related Injury Insurance
Chapter V Insurance Funds for Work-Related Injury
Chapter VI Prevention of Work-Related Injury and Rehabilitation of Occupational Diseases
Chapter VII Administration, Supervision and Inspection
Chapter VIII Responsibilities of Enterprises and Employees
Chapter IX Dispute Settlement
Chapter X Supplementary Provisions

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the Labor Law, with a view to ensuring the rights of any laborer who suffers from accidental injuries during work or develops occupational diseases to obtain medical treatment, economic compensation and rehabilitation of occupational diseases, dispersing risk of work-related injury, and facilitating the prevention of work-related injury.

Article 2 These Measures shall apply to the enterprises and their employees within the People's Republic of China.

Article 3 The work-related injury insurance shall be under the comprehensive plan of whole society, with insurance fund for work-related injury , providing economic compensation to employees of work-related injury and implementing social management service.

Article 4 Enterprises shall, in accordance with the provisions of the State and the local people's governments, effect the work-related injury insurance, pay in full the premium of work-related injury insurance, and shall, in accordance with these Measures and the standard stipulated by local people's governments, ensure the insurance benefit of work-related injury for employees in a timely manner.

Article 5 The insurance for work-related injury shall be combined with the prevention of accident and the prevention and control of occupational diseases. Enterprises and employees shall implement the guideline of "safety first, prevention first", observe the laws and regulations in respect of labor safety and hygiene, strictly implement the specifications and standards of national labor safety and hygiene, prevent the occurrence of accident in working, and reduce the hazard of occupational diseases.

Article 6 Any employee who suffers work-related injury or develops occupational diseases shall be entitled to timely treatment. All regions shall, commensurate with the local social and economic conditions, gradually develop the habilitation from occupational diseases, helping disabled employees because of work-related injury engage in the labor suitable to their physical conditions.

Article 7 The labor administrative authorities of the people's governments at county level and above shall be in charge of the insurance for work-related injury of the enterprises and employees within their respective administrative regions.
The managing institutions of social insurance funds at county level and above shall be in charge of the insurance business for work-related injury (hereinafter referred to as "managing institutions of work-related injury insurance") and shall be responsible for the fund raising, management and payment of benefit of the insurance funds for work-related injury and the management service of the employees of work-related injury.

Chapter II Scope and Recognition of Work-Related Injury

Article 8 It shall be deemed as a work-related injury where an employee is injured, disabled or demised in one of the following circumstances:
1.
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