Work Accident Insurance: Reform on the Way
17 June 2008
Read by 1596 persons
The new bill is with the General Secretariat of the government after consensus between all stakeholders.
Out-of-court settlement, increased compensation for widows, and a revised compensation calculation method are the three main focuses of the reform.
A year ago, the Ministry of Employment, then headed by Mustapha Mansouri, presented its proposed work accident reform to social partners for review and discussion. The bill was then to be submitted for adoption, with implementation slated for January 2008.
To date, the new bill has still not been adopted. The delay from the initial schedule is, according to a source close to the matter, "fully justified, as there were elections, and the new government had to be formed before resuming work on this file."
A tripartite technical commission was set up to discuss this reform, which aims to introduce greater transparency into the work accident compensation process. According to sources close to the matter, this reform project, which is set to modify the 1963 dahir governing work accidents, has been approved by all parties involved: insurers, social partners, and the Ministries of Employment and Finance.
Since February 2008, the Ministry of Employment says the draft reform has been with the General Secretariat of the Government (SGG) for review, the final step before being submitted for adoption to the Council of Government and Ministers. A meeting with the SGG is scheduled, according to the Ministry of Employment, to validate the final version of the draft. The bill will certainly be presented, as it has been included in the government's 2008 legislative action plan, during the autumn parliamentary session.
To address the shortcomings of the current work accident legislation, the project introduces three major changes: amicable settlement, increased compensation for widows, and revision of the compensation calculation method.
According to the bill, amicable settlement will be conducted within a short timeframe specified in the implementing text. It will be done directly with the insurer based on the medical certificate and the indemnity rate set by both the treating physician and the insurance company's medical advisor.
Disability will be determined, as proposed by the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR), by a panel of doctors, including the treating physician, the medical advisor, and a doctor appointed by the medical board of the insurance company's headquarters or the accident location. This proposal should reduce the settlement time for work accidents, which can currently take up to 8 years!
The second point, the standardization of compensation for widows, involves correcting an anomaly in the current legislation. Currently, this compensation varies depending on the widow's age. If she is over 60, she receives 50% of the pension, and 30% if she is under 60. The project aims to standardize this compensation regardless of the widow's age. In addition, the new bill considers increasing compensation for disabled dependents.
Finally, the third contribution of the bill concerns the revision of the compensation calculation method. Under current law, compensation is calculated based on the salary declared to the CNSS (National Social Security Fund), while the project proposes using the actual annual salary if it is higher than the minimum wage (SMIG). If it is lower, the SMIG will be used. These are the main provisions of the proposed reform.
However, it should be noted that this bill does not definitively rule out legal proceedings, which, as the project provides, will be used as a last resort.
Published May 16, 2008
Posted online May 26, 2008
lavieeco.com
Out-of-court settlement, increased compensation for widows, and a revised compensation calculation method are the three main focuses of the reform.
A year ago, the Ministry of Employment, then headed by Mustapha Mansouri, presented its proposed work accident reform to social partners for review and discussion. The bill was then to be submitted for adoption, with implementation slated for January 2008.
To date, the new bill has still not been adopted. The delay from the initial schedule is, according to a source close to the matter, "fully justified, as there were elections, and the new government had to be formed before resuming work on this file."
A tripartite technical commission was set up to discuss this reform, which aims to introduce greater transparency into the work accident compensation process. According to sources close to the matter, this reform project, which is set to modify the 1963 dahir governing work accidents, has been approved by all parties involved: insurers, social partners, and the Ministries of Employment and Finance.
Since February 2008, the Ministry of Employment says the draft reform has been with the General Secretariat of the Government (SGG) for review, the final step before being submitted for adoption to the Council of Government and Ministers. A meeting with the SGG is scheduled, according to the Ministry of Employment, to validate the final version of the draft. The bill will certainly be presented, as it has been included in the government's 2008 legislative action plan, during the autumn parliamentary session.
To address the shortcomings of the current work accident legislation, the project introduces three major changes: amicable settlement, increased compensation for widows, and revision of the compensation calculation method.
According to the bill, amicable settlement will be conducted within a short timeframe specified in the implementing text. It will be done directly with the insurer based on the medical certificate and the indemnity rate set by both the treating physician and the insurance company's medical advisor.
Disability will be determined, as proposed by the Moroccan Federation of Insurance and Reinsurance Companies (FMSAR), by a panel of doctors, including the treating physician, the medical advisor, and a doctor appointed by the medical board of the insurance company's headquarters or the accident location. This proposal should reduce the settlement time for work accidents, which can currently take up to 8 years!
The second point, the standardization of compensation for widows, involves correcting an anomaly in the current legislation. Currently, this compensation varies depending on the widow's age. If she is over 60, she receives 50% of the pension, and 30% if she is under 60. The project aims to standardize this compensation regardless of the widow's age. In addition, the new bill considers increasing compensation for disabled dependents.
Finally, the third contribution of the bill concerns the revision of the compensation calculation method. Under current law, compensation is calculated based on the salary declared to the CNSS (National Social Security Fund), while the project proposes using the actual annual salary if it is higher than the minimum wage (SMIG). If it is lower, the SMIG will be used. These are the main provisions of the proposed reform.
However, it should be noted that this bill does not definitively rule out legal proceedings, which, as the project provides, will be used as a last resort.
Published May 16, 2008
Posted online May 26, 2008
lavieeco.com
