Labor insurance follows a reporting system in which, according to regulations, companies applicable for compulsory insurance shall complete insurance application on the laborer's start date and submit it to the Bureau of Labor Insurance for processing. The insurance is effective starting from the day the application form was posted or the day the deliverer delivered it to the Bureau (if sent via post, the day the form was posted shall be based on the postmark of the sending post office). If the insured unit failed to insure the employee on the day the employee starts work, and such failure is verified by following investigations, the Bureau shall impose punishment according to regulations, and the insurance may not be effectuated on the day the employee starts work. If the insured unit's delay in insuring its employee results in damaging the employee's rights and interest, the insured unit shall be responsible for compensating the employee.