Labor ordinances in Taiwan involving the protection of workers suffering from occupational accidents include the Labor Standards Act, which stipulates employers' liability in providing compensation for occupational accidents, the Labor Insurance Act which contains provisions on various insurance benefits provided by occupational accident insurance, and the Labor Safety and Health Act and Labor Inspection Act which contain provisions on the prevention of occupational accidents. Since the above laws are not applicable to all workers, and in practice there are still employers who do not enroll their workers in labor insurance according to regulations, or, when occupational accidents affect their workers, do not perform their responsibility under the Labor Standards Act to provide compensation for occupational accidents, the Occupational Accident Labor Protection Act (OALPA) was implemented on April 28, 2002, to prevent the occurrence of occupational accidents, enhance the safety of workers, and ensure the livelihoods of workers suffering from occupational acts and their families or surviving dependents.

Since the implementation of OALPA, workers suffering from an occupational accident may apply for financial subsidies pursuant to the provisions of the Act regardless of whether they are enrolled in labor insurance. The implementation of the Act does not increase the burden of insurance premiums on either workers or employers, as the expenses of subsidies for workers suffering from an occupational accident who are not enrolled in labor insurance is paid from public budget compiled by the government. The implementation of this Act incorporates three major systems for occupational accident prevention, rehabilitation, and compensation, resulting in a more complete and substantive system of occupational accident coverage.

Problems facing OALPA

Although the R.O.C. has already covered employer liability for occupational accident compensation by social insurance, and implemented the labor insurance annuity system on January 1, 2009, however, labor insurance is currently a general insurance, with regulations related to occupational accident insurance limited by the finances of ordinary accident insurance, insurance premium costs, the appropriate degree of protection, and other basic principles not being able to reflect workers' earned income, and with OALPA essentially being a complementary set of protective provisions, there are issues of insufficient protections from occupational accidents. Analysis of several major issues facing the occupational accident insurance system is outlined below.

1. Insurance enrollment is not mandatory for employers with fewer than four employees, and their workers are unable to receive occupational accident benefits when accident occurs.

Since the existing labor insurance is a general insurance, some employers do not enroll their workers to avoid the burden of ordinary accident insurance premiums, resulting in workers being unable to receive insurance benefits when an occupational accident occurs.

2.Upper limits on insured earnings result in employer's compensation liability not being fully offset.

Ordinary accident insurance must take into consideration the ability of both workers and employers to afford insurance premiums, appropriate livelihood provided by social insurance, and other factors. The Labor Insurance Insured Earnings Classification Table sets upper and lower limits on earnings, where the original wages or salary of a worker suffering from an occupational

accident exceed the upper limits for insured earnings, the employer's occupational accident compensation liability will not be fully offset, resulting in a heavy burden.

3.Standards for calculating occupational accident insurance annuity payments are insufficient to protection those with less seniority

Under the current regulations, seniority is included in the calculation of disability and surviving dependant annuity payments for workers suffering from occupational accidents. Therefore, workers who entered the labor market after the implementation of the labor insurance annuity system on January 1, 2009 would only receive basic livelihood annuity when they suffer from an occupational accident, which is often insufficient for protection.

4. Continuous funding to cover occupational accident prevention and rehabilitation expenditures for a sustainable operation

Expenses required for occupational accident prevention and rehabilitation work conducted pursuant to OALPA are paid for from the 40% of the annual balance of occupational accident insurance revenues and expenditures allocated to the Occupational Accident Protection Fund. In order to provide competent agencies to enhance the conduct of OALPA occupational accident prevention and rehabilitation work, they should be included in the actuarial calculation of occupational accident premiums in order to benefit the sustainable operation of these activities.

Promoting separate legislation on occupational accident insurance

In order to establish a complete occupational accident insurance system, the Ministry is actively working toward separate legislation on occupational accident insurance. The core goals expected to be achieved are as follows:

1. Full inclusion of employed workers in occupational accident insurance protections

Following the legislative model of the Employment Insurance Act, coverage is to include all employed workers within the scope of protection of occupational accident insurance, with no distinction made regarding the scale or number of employees employed by business entities. This is to guarantee the livelihood of workers suffering from occupational accidents and their surviving dependents.

2. Convenient enrollment to allow natural person employers to take part in occupational accident insurance on behalf of their workers

As is done with travel insurance, provide convenient methods for enrolling in insurance (such as at convenience stores), allowing people such as natural person employers or hourly workers who lack channels for enrollment to be able to enroll quickly and conveniently so that their work safety is covered.

3. Appropriate increase in the upper limit on insured earnings

Increasing the upper limit on insured earnings by 1.3 times the highest bracket (approximately NT$57,070) based on workers' actual wage and salary levels. This will cover the salary levels of 90% of workers, advancing the interests of workers suffering from occupational accidents as well as reasonably dispersing employer compensation risk from such accidents.

4. Enhanced protection on occupational accident disability and surviving dependent annuities

Increased occupational accident disability annuity and surviving

dependent annuities may be calculated at 50% of the average insured monthly salary, ensuring the security of the livelihood of workers with relatively short seniority suffering from occupational accidents and their families.

5. Integrating occupational accident insurance payments and subsidies provided under OALPA

Integrate occupational accident insurance payments and subsidies provided under OALPA, promptly and completely ensuring the livelihood of workers suffering from occupational accidents or their surviving families.

6.Sound funding for occupational accident prevention and rehabilitation expenses

A certain percentage of funds from occupational accident insurance premiums may be allocated each year to enhance occupational accident prevention and rehabilitation work and

ensure their sustainability.

Since implementing a labor insurance system in 1950, the R.O.C. has utilized a system of comprehensive insurance in which workers enrolled in registration according to regulations are entitled to occupational accident protections per the relevant provisions of the Labor Insurance Act when such accidents occur. Having now been in place for over 60 years, the system is familiar and accepted throughout society. Therefore, the separation of occupational accident insurance from ordinary accident insurance that is being deliberated is a deconstruction of the insurance system, and any issues with separate legislation on occupational accident insurance may have links to ordinary accident insurance and have knock-on effects. As this involves major systemic reforms, there is an urgent need to form a consensus in order to move forward smoothly.