[Taiwan] Occupational accident insurance mandatory for all employees under new law

[Taiwan] Occupational accident insurance mandatory for all employees under new law
30 Apr 2021

In positive news for workers in Taiwan, the country's legislature has passed the Occupational Accident Insurance and Protection Act ahead of Labour Day on May 1. Asia Insurance Review has the key information employers need to know.

The new law covers all employees and stipulates two months of full salary payout for those suffering from an occupational injury or disease, according to Central News Agency reporting.

Ms Liao Hui-fang - chairperson of Taiwan Occupational Safety and Health Link, one of the civil groups devoted to promoting the enactment of the new law - said that the legislation, covering all employees in Taiwan including foreigners, integrates prevention of occupational hazard, compensation and rehabilitation into one single law.

Under the new Act, employers are required to sign their workers up for occupational accident insurance on their first day at work, regardless of the size of the company.

Prior to the legislation’s passage, only companies employing five or more workers were required to have labour insurance for their workers - which covers occupational accident insurance and protection - while insurance enrolment was voluntary for companies with fewer than five people.

Thanks to the passage of the Occupational Accident Insurance and Protection Act, no legally hired workers (including interns and domestic helpers) are excluded from occupational accident insurance. Self-employed workers can also choose this insurance.

The new law also applies to all foreigners hired to work in Taiwan.

Payouts

Under the new law, the monthly insured salary - used as the basis for determining benefits - is set from NT$24,000 ($856) to NT$72,800. Insurance payouts cover medical treatment, injury/disease, disability, death and disappearance.

Occupational injury or disease benefits are set at 100 per cent of a person's insured salary for the first two months then 70 per cent until the application ends. Permanent disability benefits will be determined based on the severity of a person's disability. 

A person who is completely disabled will receive 70 per cent of their insured salary, while a person with severe disabilities will receive 50 per cent and a person who is partially disabled will receive 20 per cent, according to the new Act.

The date for the new law to become effective will be decided by the Cabinet.



Source: Asia Insurance Review

In positive news for workers in Taiwan, the country's legislature has passed the Occupational Accident Insurance and Protection Act ahead of Labour Day on May 1. Asia Insurance Review has the key information employers need to know.

The new law covers all employees and stipulates two months of full salary payout for those suffering from an occupational injury or disease, according to Central News Agency reporting.

Ms Liao Hui-fang - chairperson of Taiwan Occupational Safety and Health Link, one of the civil groups devoted to promoting the enactment of the new law - said that the legislation, covering all employees in Taiwan including foreigners, integrates prevention of occupational hazard, compensation and rehabilitation into one single law.

Under the new Act, employers are required to sign their workers up for occupational accident insurance on their first day at work, regardless of the size of the company.

Prior to the legislation’s passage, only companies employing five or more workers were required to have labour insurance for their workers - which covers occupational accident insurance and protection - while insurance enrolment was voluntary for companies with fewer than five people.

Thanks to the passage of the Occupational Accident Insurance and Protection Act, no legally hired workers (including interns and domestic helpers) are excluded from occupational accident insurance. Self-employed workers can also choose this insurance.

The new law also applies to all foreigners hired to work in Taiwan.

Payouts

Under the new law, the monthly insured salary - used as the basis for determining benefits - is set from NT$24,000 ($856) to NT$72,800. Insurance payouts cover medical treatment, injury/disease, disability, death and disappearance.

Occupational injury or disease benefits are set at 100 per cent of a person's insured salary for the first two months then 70 per cent until the application ends. Permanent disability benefits will be determined based on the severity of a person's disability. 

A person who is completely disabled will receive 70 per cent of their insured salary, while a person with severe disabilities will receive 50 per cent and a person who is partially disabled will receive 20 per cent, according to the new Act.

The date for the new law to become effective will be decided by the Cabinet.



Source: Asia Insurance Review

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