Peter Barth presented an interesting overview of China’s occupational insurance situation at WCRI’s annual meeting yesterday. According to Dr. Barth, China passed a comprehensive workers comp law that took effect January 2004. WC is voluntary in the world’s most populous country, although employers that do not subscribe to the insurance program are required to pay the same indemnity benefits available through the program.
The employment situation in China is somewhat unique; a large percentage of the employed population works for government or military-owned firms; about half of the 800 million potential workers are in agriculture, and a large percentage of the remainder is employed by either small firms or foreign and domestic joint ventures. To date, 75 million are coverd by the state fund, which has a goal of 140 million by 2010.
Here are a few other highlights.
– the standard for an injury or illness is consistent with the US’; arising out of or in the course of employment
– premiums are in three bands, ranging from 0.5% of premium to 1.5%, with 2.0% for the worst case
– experience rating is in place, but a maximum of one point can be assessed for the worst risks
While the occupational health situation in China has been the subject of much negative attention, the inception of this state fund may well be the start of significant improvement. Much needed improvement.
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