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Module 1 - Insured Costs

This document summarizes insured and uninsured costs associated with work-related injuries and illnesses. Insured costs include medical expenses covered by workers' compensation laws and disability/death payments from the Compensation Commissioner. Uninsured costs include expenses such as training replacement workers, investigating incidents, uninsured medical costs, legal fees, damage to equipment/facilities, lost production time, and decreased output or efficiency. Rehabilitation costs for environmental damage are also considered an uninsured cost.

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Phanankosi Dube
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61 views2 pages

Module 1 - Insured Costs

This document summarizes insured and uninsured costs associated with work-related injuries and illnesses. Insured costs include medical expenses covered by workers' compensation laws and disability/death payments from the Compensation Commissioner. Uninsured costs include expenses such as training replacement workers, investigating incidents, uninsured medical costs, legal fees, damage to equipment/facilities, lost production time, and decreased output or efficiency. Rehabilitation costs for environmental damage are also considered an uninsured cost.

Uploaded by

Phanankosi Dube
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Insured costs

INSURED COSTS

TYPES OF COST EXPLANATION

The cost of medical treatment for work-related injuries/ illnesses covered by


Medical expenses state compensation laws. It would not include expenses relating to nursing
stations in the building, home treatment or over-the-counter self-medication.

Compensation
Commissioner, disability Compensation paid to disabled workers or next of kin from Compensation
payments and death Commissioner as required by law.
payments

UNINSURED COSTS

TYPES OF COST EXPLANATION

Cost of training new If a replacement worker is necessary, the cost of training that worker
worker(s) (including materials and supervisor’s time).

Cost of investigating Time spent by management and clerical employees investigating an incident,
time filing forms, settling claims etc.

These costs are usually the medical service provided by the plant or company
Uninsured medical costs
nurse’s office or dispensary.

Any cost to the company or the individual as a result of legal expenses


Legal expenses
including attorney and court costs.

Incidents may be publicised by the media or by workers. This can result in lost
Company image suffers
sales and/or loss of customer confidence.

Could trigger An inspection can affect productivity as well as result in fines or penalties
government inspections against the company.

Time lost from work by This includes any wages paid to the injured employee that are not covered by
injured worker's compensation.

Time lost when employees stop work to assist, watch or discuss the incident.
Time lost from work by This would also include time period required to repair equipment, clean up
non-injured incident site, as well as additional time tasks may take without assistance of
injured worker.
Damage to tools,
Incidents may actually physically damage equipment, property, or buildings.
equipment, products,
This also includes any costs to move or reorganise material or equipment,
materials, buildings, and
special repair equipment or replacement parts.
production

Damaged products need to be re-worked to fill orders. Client may place orders
Loss of sales
elsewhere.

Clients may remain loyal to new supplier who was selected as a result of an
Loss of client base
inability to deliver on time.

Production costs for product replacement require equivalent increase in sales


Loss of income/profit
volume to cover unforeseen loss versus projected sales.

Incidents may result in short or long term reduction in efficiency. For example,
processing may take longer if workers are afraid of the equipment or if they
Lost efficiency
have to take more time to check the equipment set-up before running the
line.

The difference between normal wages and overtime wages for time needed
Extra cost of overtime
to make up lost production.

Lost time of supervisor Wages for the time supervisors and management spent away from normal
and management responsibilities as a result of an incident.

Decreased output Incidents may result in decreased production if a worker cannot complete his
work, and a replacement worker is necessary or there is downtime.

Rehabilitation costs Damage to the environment can take years to be repaired and could lead to
(environment) large amounts of money being spent on rehabilitation.

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