Per the existing stipulations, with a subscriber entity hiring the insured numbered to 70 persons would qualify as an entity eligible for the labor insurance experience rates for occupational accident, the Bureau of Labor Insurance shall adjust an entity’s occupational accident’s billing rate by calculating the ratio of the insured’s occupational accident insurance total payout to the total remittable occupational accident insurance premiums an applicable entity belongs to, where entities with higher occupational accident occurring ratios are expected to shoulder more in occupational accident insurance premiums, and entities with lower occupational accident occurring ratios are expected to pay less in occupational accident insurance premiums. With the calculation of the adoptable occupational benefit billing rates for the 2014 labor insurance experience rates for occupational accident’s actual billing rate for the applicable entities having been completed, the Bureau of Labor Insurance has on October 28, 2013 notified various relevant subscriber entities.
To motivate the employers to emphasize on improving the labor safety and health facility, improve the quality of the working environment to achieve the objective of preventing and also mitigating occupational accidents from occurring to better safeguard the workers’ safety, the government has since 1996 begun to implement the labor insurance experience for occupational accident’s actual billing rate system. As stipulated under Paragraph 3 and Paragraph 4, Article 13 of the Labor Insurance Act, and Regulations Governing Implementation of Labor Insurance Experience Rates for Occupational Accidents, effective from July 1, 2012 to June 30, 2013, subscriber entities that hire an average of the insured reaching 70 persons or more are regarded as the applicable entities to the 2014 labor insurance experience for occupational accident’s actual billing rate, with the industry-specific accident billing rates are to be calculated and adjusted by the ratio of the 2010 to 2012 total occupational accident insurance payout to the total occupational accident insurance premiums remitted, where of those with a ratio exceeding 80%, for every 10% increase, there is an additional levy of 5% on the applicable industry occupational accident billing rate, which is capped to a total of 40%; for those with a ratio lower than 70%, for every 10% reduction, there is a reduced levy of the applicable industry occupational accident billing rate by 5%. In 2014, there is a total of 10,919 subscriber entities eligible for the net billing rates system (up by 230 entities when compared with that in 2013), and among them, 7,652 entities receive a reduced occupational accident insurance billing rates, and 2,477 entities receive an increase, while 790 entities keep to their initial billing rates. In addition, among the applicable entities of the 2013 actual billing rates scheme, 648 entities are no longer the applicable entities to the actual billing rates scheme in 2014.
Through the implementation of the actual billing system, entities with higher occupational accident occurring ratios are levied with higher occupational accident insurance premiums, which in turn emphasizes on improving workplace safety, whereas entities with lower occupational accident occurrence ratios are levied with lesser burden in occupational accident insurance premiums, as the Bureau of Labor Insurance urges employers to emphasize on safety and health facility and improving the working environment, by which to reduce the occupational accident from occurring, which not only helps to safeguard the workers’ working safety and can also help to reduce an entity’s future burden in occupational accident insurance premiums, making it an effort with dual return and a win-win for management and labor.