Workers Comp Around the World

Workers CompAround the WorldOrIm glad to be in America

Tim EastThe Walt Disney Company

WCCP ConferenceHammock Beach Resort, FloridaJune 8, 2010

Workers Comp Around the WorldAmerican state-specific systems are fairly uniqueDiversity and variation are significant even in neighboring countriesAt the same time, there are some remarkable consistencies in workers compensationWorkers Comp Around the WorldBut in some ways things are very difference outside the United StatesOutside the United States

Workers Comp Around the WorldYet on the serious side, we have a lot to be thankful forand careful if and when our organization expands overseasScale of Accidental Injury Overseas188 Workers Killed469 Injured40 minutes before first response arrived

Kadar Toy Factory Fire188 Workers Killed469 Injured40 minutes before first response arrived

Fallout of the Tragedy

Introduced to International Claims ManagementHong Kong Disneyland

Hong Kong Disneyland - 1999

16Depreciation FY02: $648, FY03: $689Unique Exposures

Finding HKDL by Car

Arriving by Train

The City of Hong Kong

Workers Comp Around the World

Hong Kong Claims TeamHong KongRun by the HKSARGOne countrytwo systemsStrong judicial and legal systemNo exclusive remedyinjured workers may pursue a civil claimNo contingency feeslimits civil claims!Some unique challengesBamboo Scaffolding

Unique Safety Equipment

Subrosa is very difficult

Management Responsible to Maintain Good Fortune

Opening DaySeptember 2005

Workers Comp Around the WorldOne thing I learned: Understanding cultural issues is critical!Cultural DifferencesCultural misteps or offenses can derail a project or risk management program

Singapore

SingaporeSubject to Workmen's Compensation ActCompulsory 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 monthAll others have recourse to common lawSettlement strategy is easy. SingaporeMaximum 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 2004Requires local authorities to establish workers compensation fundsScheme for employer contributions of .5 to 3% based on industry, company and location to a provident fundJust starting to be put in practice in major cities

Chinese PD Schedule

Foreign nationals are not covered; insurance should be secured from home countryMost companies buy Employers Liability coverage coordinated with group accident policiesProvides 24-hour coverage for their employees at a modest costMost claims: $120 - $1,200Most severe death claim: $120,000The UKBasic government scheme covers all workersEmployees working abroad are not includedInjured workers may still sue their employers under common law Claims EnvironmentSignificant source of claims for Disneyland ParisSolicitation of claimants may be a factor

The Compensation Calculator

GermanyThe Rechtsverordnung requires compensation for work related accidents and some occupational diseases Employer contributions based on type of business and prior claims experienceFunds sent to local agencies that administer the Social Security SchemeThe BerufsgenossenschaftenOSHA? 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 BoardEin offerzung un zippen squattenCommon ApproachesMexicoThe PhilippinesNorwaySaudi Arabia (funded by 2% of wages)France (no right to sue)Canada (government monopoly)Bulgaria (allowed to sue)BrazilAustriaTurkeyRussia

A Government scheme attached to social security, and often the social medical systemCommon ApproachesPrivate insurance allowed but regulated:BelgiumIndiaUnited States

Government insurance company or fund:UkraineSouth AfricaPuerto Rico (employee has option to sue)

Common ApproachesAround the world: Medical care is ranges from very good to very poorCivil 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 Workers Compensation policy if employees travel overseas Claims professionals speak the same languageabout the same problems!International Claim ChallengesWho is eligible for benefits?Who to pay them?How to resolve small claims?Valuation of the lossJudicial systems and venue shoppingLocal customs and traditions

Judicial SystemsU.S.A.

Jury System

Make the Best Argument

Testimony

Contingency FeesForeign Jurisdictions

Judges

Documentary Evidence

Find Truth

Loser Pays

Claim PaymentsU.S.A.

Economic Loss

Non-economic Awards

Punitive Damages

Runaway Verdict PossibleForeign Jurisdictions

Economic Loss

Subject to Schedules

Not Likely

Costs Awarded by Judge

Summing it Up

The Global Claims ManagerSumming it UpGo early and learn from othersSelect a strong local advisor/brokerEstablish and build relationships firstBe prepared to provide more submission details and informationEstablish loss prevention expectations earlyVisit in person as often as possibleDont underestimate cultural issues

Summing it Up

The Global Claims Manager