Workers' accident compensation insurance is aimed to provide benefits to workers who had accidents at work or while commuting. The insurance does not cover employers or company directors. However, such individuals at small or midsized firms may apply for voluntary enrollment, if protecting them is considered appropriate based on the status of operations or accident occurrence. This mechanism is referred to as “special enrollment of workers’ accident compensation insurance.” This article explains how to determine or change basic daily benefits under the special enrollment program and key points in changing the figures.
[1] Method of determining basic daily benefits under special enrollment
When a normal worker receives benefits for leave of absence due to an industrial accident, the basic daily benefit is calculated based on the worker’s average wage at the time of the accident. In the case of special enrollment, the basic daily benefit is selected from 16 ranks (3,500 yen ~ 25,000 yen) in advance and an application is submitted. Once the daily benefit is determined, it cannot be changed during the fiscal year.
[2] How to change the basic daily benefit under special enrollment
The basic daily benefit under the special enrollment program may be changed on two occasions in a fiscal year (from April to March next year). The first period is between March 2 and March 31. A change during this period is called “Prior Application.” The second is between June 1 and July 10, which is the annual renewal period. A change during this period will be applied retrospectively from the beginning of the fiscal year. In the event an accident had occurred before an application is submitted in this period, the change will not be accepted for the fiscal year. Please try to file a change by “Prior Application,” if necessary.
Amounts of insurance benefits are determined based on the basic daily benefits. Companies should confirm the figures are appropriate before the period of “Prior Application.” Please also note that, if a company is planning to apply for special enrollment, it is required to entrust administrative procedures of labor insurance to a labor insurance administrative affairs association.
[Reference]
The Labor Ministry, “The guide to special enrollment of workers’ accident compensation insurance (for small- and medium-sized business owners)”
https://www.mhlw.go.jp/new-info/kobetu/roudou/gyousei/rousai/dl/040324-5.pdf
