Workers' accident compensation insurance is aimed to provide benefits to workers who had accidents during work or while commuting. Normally, employers or company directors are not covered by the insurance, but 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 system is referred to as “special enrollment of workers’ accident compensation insurance.” This article explains how the basic daily benefit of special enrollment is determined and important points in applying for a change.
[1] Method of determining the basic daily benefit of special enrollment
When a normal worker receives leave compensation due to an industrial accident, the basic daily benefit is calculated based on the worker’s average wage at the time of the accident. Meanwhile, in the case of special enrollment, applicants choose the basic daily benefit from 16 ranks (3,500 yen ~ 25,000 yen) when filing the application. Once the application is approved by the Labor Bureau and the daily benefit is determined, it cannot be changed during the fiscal year.
[2] How to change the basic daily benefit of special enrollment
The basic daily benefit of special enrollment may be changed annually and it will be applied for fiscal year from April to March. There are two ways to apply for the change. The first is called “Prior Application,” which is carried out during the period from March 2 to March 31, before the start of fiscal year. The second is the application during period of labor insurance annual renewal from June 1 to July 10. A change during this period is applied retrospectively from the beginning of the fiscal year. However, if an insurer had an accident before a change application is submitted during this period, the change will not be accepted for the fiscal year. If a change is necessary, it is advisable to use Prior Application wherever possible.
Amounts of leave compensation or insurance premiums are determined based on the basic daily benefit. Companies with applicable persons should confirm the amount of basic daily benefit is appropriate before the Prior Application period. Please also note that, to apply for the special enrollment, companies need to entrust labor insurance administrative procedures to a labor insurance administrative affairs association (except for the special enrollment of persons dispatched overseas.)
‘Reference
The Ministry of Health, Labour and Welfare, “Leaflet on the Labor Insurance Special Enrollment System (for small and midsized business owners)”
https://www.mhlw.go.jp/new-info/kobetu/roudou/gyousei/rousai/dl/040324-5.pdf
*The information is based on laws and regulations as of the date of the original article.
