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ILO presents blueprint of work injury insurance scheme

Garment sector to come under initial coverage

The International Labour Organization (ILO) has proposed a new mechanism for the payment of compensation to industrial workers in case of injuries and other occupational diseases. According to its proposal, the compensation would be provided based on the loss of income, health care and rehabilitation related to injuries. The ILO apprised the government and other stakeholders of the salient features of its mechanism at a meeting held on Wednesday in the city. “We have briefed the stakeholders about the benefits of introducing a national employment injury insurance scheme and how it might be administered showcasing models of countries that already introduced such scheme,” Hiroshi Yamabana, senior actuary of the ILO’s global programme for employment injury insurance and protection said. Workers will benefit by receiving timely and appropriate protection against the financial consequences of employment injuries. Employers’ business and assets are protected against the financial consequences of catastrophic accidents through collecting risk pooling, he said, adding the government could ensure wellbeing of the population and economic and social stability. Explaining the need to introduce such a scheme, he said that it would give protection to the workers of the country as the amount of compensation fixed in the existing law is insufficient and there is no long-term rehabilitation support. He was speaking at a press briefing held Thursday at ILO’s Dhaka office in the city. Douglas Stanley, senior legal expert of the ILO employment injury protection scheme for Bangladesh was also present. The scheme does not cover non-work-related disability and deaths, he said, adding in many countries non-work-related disability and deaths are covered by a separate general invalidity and survivors’ benefit scheme financed by contributions of both employers and workers. Discussions will help stakeholders become more familiar with the concept and the principle of the new scheme as the cost of the scheme is a crucial element for all stakeholders. Replying to a question, Mr Stanley said according to Bangladesh labour law, it is the employers who will compensate injured workers. The new scheme has proposed collecting contributions from employers based on workers’ wages and provides periodical payments and health care to injured workers, he said. The body that administered the Central Fund for export-oriented sector workers might operate the new scheme, he added. A certain portion of wages might be collected from the employers, he said, noting Cambodia collects 0.8 per cent of the wages, Malaysia 1.25 per cent and Vietnam 1.0 per cent.

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