Insurance Effect and Insurance Validity

Insurance Validity

In accordance with Paragraph 1 of Article 14 of the Labor Occupational Accident Insurance and Protection Act, the validity of the insurance shall be governed by the following provisions:

1. Applying for insurance on the day of onboarding: From the actual time when the insurance premium payment is completed until the designated insurance expiry date.
2. Pre-application for and withdrawal from insurance: if the effective date is specified backward, after the declaration is completed and the insurance premium is paid, the insurance validity starts from 0:00 on the specified day and ends on the specified insurance termination date.

Period  of the insurance

In order to provide provisional or temporary labor workers, it is convenient and quick to participate in labor occupational accident insurance to ensure their work and life safety. Article  6  of  Regulations Governing Enrollment into the Insurance in Accordance with Article 10 of Labor Occupational Accident Insurance and Protection Act stipulates that the insured shall be entitled to apply for insurance within 10 calendars days prior to onboarding and each additional insurance period may be up to 6 months.

Insured Salary

1. In accordance with the provisions of Article 8 of Regulations Governing Enrollment into the Insurance in Accordance with Article 10 of Labor Occupational Accident Insurance and Protection Act, the monthly insured salary of those who participate in this insurance (hereinafter referred to as special enrollment for insurance) in accordance with these regulations, the insured unit or the person actually engages in works shall report to the insurer (the Bureau) the total monthly salary in accordance with the provisions of the insured salary levels in the attached schedule. In addition, the monthly insured salary for the special enrollment cannot be applied for adjustment.
2. According to the attached schedule of the above-mentioned regulations, the salary levels for special enrollment are divided into five levels, respectively, known as minimum wage (NTD27,470 in 2024), NTD30,300, NTD34,800 , NTD40,100 and NTD45,800. The insured person (the natural person employer, the person receiving the labor services or the person who actually engages in works) shall declare the actual total monthly salary of the worker according to the provisions of the insured salary grading levels specified in the attached Schedule.

Insurance premium rate

In accordance with Article 7 of  Regulations Governing Enrollment into the Insurance in Accordance with Article 10 of Labor Occupational Accident Insurance and Protection Act, the premium rate for special enrollment shall adopt a single rate. The insurance applies to the average rate of the industry category and the rate table, so the rate of the special enrollment  premium from May 2022 to 2024 is 0.2%. Subsequent adjustments will be made every three years and the central competent authority shall determine and announce the actual insurance income and expenditure of the insured in the most recent three years and actuarial results in accordance with these Regulations.

Calculation Method

In accordance with Article 9 of Regulations Governing Enrollment into the Insurance in Accordance with Article 10 of Labor Occupational Accident Insurance and Protection Act, the insurance premium for special enrollment is calculated based on the actual number of days, premium rate and monthly insured salary. For example, Mr./Ms. Wang applied for labor occupational accident insurance from May 5, 2022 to June 12, 2022 at NTD34,800 through the special enrollment channel. The total insurance coverage period is 39 days, and the total insurance premium is NTD91. The calculation method is as follows:

The formula: the insured salary x the rate x number of days of insurance coverage /30 (it shall be calculated separately and added together when the coverage period covers two or more calendar months).

※Note: Even if the insurance covers the whole calendar month, the premium shall still be calculated based on the actual number of days covered by the insurance, which is different from the 30-day calculation of the labor (employment) insurance regardless of the actual days within the month. For example, Mr./Ms. Chen applies for labor occupational accident insurance from May 1, 2022 to May 31, 2022 at NTD34,800 via the special enrollment channel. The total insurance premium will be NTD72 for a total of 31 days. The calculation method is as follows:

Other regulations

1. If the insurance coverage period is more than one calendar year, the insurance premium will be calculated based on the insured salary and insurance rate of the year in which the application is submitted.
2. The start and termination time of the insurance validity cannot be changed after the payment of the insurance premiums; the insurance premiums for the insurance will not be refunded once the insurance premiums have been paid.
3. Those who apply for the insurance shall pay the premium in full, and the provisions of the Act and other laws and regulations regarding the exemption or subsidy of insurance premiums shall not apply.