Employment Injury Insurance in Sri Lanka By B. Vasanthan & R.J. Abeysiriwardena

Overview of Demography Total Population is about ml. (2009) Growth of population 0.904%, Density is 322/Km 2 Life expectancy years for Male and years for female (Sep ) Literacy rate – 93% Male and 90% Female House hold size 4.1 members Child Birth rate is birth/1000 population (July 2010 ) Child Death rate is 6.13 birth/1000 population (July 2010 )

Overview of the Labour force The estimate Labour Force is about 7.57 million. It comprises 1.2 million Government sector, 5.8 million in formal and informal sectors and 0.4 unemployed 7.57 million workers are working in (32.7%) Agriculture, (26%) Industry, (41%) Service sectors. Contribution to the GDP – Agriculture 12%, Industry 28%, Service 60%

Age Structure 0-14 years: 23.9% (male 2,594,815/female,493,002) years: 68% (male 7,089,307/female 7,418,123) 65 years and over: 8.1% (male 803,172/female926,372) (2010 est.)

Future Issues of Demography 10% of the population is over 60 years of age Prime age population (15-59) will start to decline from 2010 Working age population will start to decline from 2035 Labour Force is slowing down from 2030

Overview of the Labour force The estimate Labour Force is about 7.57 million. It comprised 1.2 million Government sector, 5.8 million in formal and informal sectors and 0.4 unemployed 7.57 million workers are working in (32.7%) Agriculture, (26%) Industry, (41%) Service sectors. Contribution to the GDP – Agriculture 12%, Industry 28%, Service 60%

Unemployment rate is 5.9% (2009) Comparison 2006 (6.5%), 2007 (6%),2008 (5.2%) GDP – US$ 42 billion (2009), GDP growth rate is 6% (2008), 3.5% (2009) Per Capita income - US$ 2014

Labour productivity per person US$ 3237 by sectors Agriculture US$ 1220, Industry US$ 3564, Services US$ 4780 Labour productivity growth rate 6.5% Inflation rate 10% (2006), 15.8% (2008), 3.4% (2009 est)

10% of the population is over 60 years of age Prime age population (15-59) will start to decline from 2010 Working age population will start to decline from 2035 Labour Force is slowing down from 2030 Future Issues of Demography

Industrial Safety Division Vision Healthy Working population through Hazard-free work place and Healthy work environment Mission Improving productivity by eliminating or Controlling the industrial accidents and diseases

Services Of Industrial Safety Division Main object is ensure Safety, Health & Welfare at Each workplace by enforcing the Factories ordinance of Sri Lanka. Investigate the »Fatal & Serious accidents at work places » Prevent the reoccurrence »Consultation, Recommendation & supervision until injured person or dependent receive Compensation. Inspect workplaces on Safety, Health and welfare to ensure the compliance with the above Ordinance. Investigate the complaints by workers, trade unions,etc,… Inspection of high risk machinery at workplaces Conduct Safety & Health (including employment injury & injury Insurance) Awareness Programmes to employers and employees. Execute legal Action on the contraventions of Factories Ordinance

Fatal Accident due to blasting a grinding wheel

Office Of the Workmens’ Compensation Main Function To afford the necessary facilities to obtain compensation for the worker or his /her dependant in the case of an accident, illness or death of such worker occuring while engaged in employment or as a result of such employment.

Compensation Can be Obtained  By establishing that the accident or illness caused to the worker was due to solely being engaged in the particular employment.  When the accident was not due to the influence of liquor or narcotics  Unless it is an occurrence due to non- compliance of orders.  Not an incident due to the non-use of protective equipment provided.  Application should be made within two years of the Occurance of the accident/ death. All Compensations coming under the Worker’s Compensation Ordinance No 19 of 1934

Schedule IV Quantum of Compensation US $ Monthly Wage In the event of a death of works In the event of permanent and complete disablement Half Monthly payment of compensation (Temporary Disablement ) or Above

Number Of Industrial Accidents Settled and Compensation Paid Year Number of IndustrialCompensation Paid Accidents Settled US $ FatalNon – FatalTotal Fatal (X 1000) Non – Fatal (X 1000) Total (X 1000)

Finance for Employer Injury Insurance Scheme Finance for Employer Injury Insurance Scheme The employer has to pay according to the schedule and Compensation Act. Private Insurance Co. run as W.C Insurance Scheme ( only employer contributes) No compulsory insurance scheme for company workman compensation

Challenges Facing Improving EII Lack of knowledge of employers & employees Weakness of existing Ordinance and lack of regulations Source of fund for Insurance Introduce Compulsory Insurance on Workman’s Compensation Existing facilities are not sufficient to conduct awareness programmes Medical coverage Insurance should be introduced