Industrial Accident Compensation

Chapter 3. Industrial Accident Compensation Benefits

I. Types of Benefits

When an employee of an employer covered by IACI suffers an occupational injury or illness which requires 4 days or more of medical treatment, or dies from a work-related cause, the IACI benefit shall be paid at the request of the employee (or his/her surviving family member). IACI benefits include medical care benefit, suspension benefit, injury-illness compensation annuity, disability benefit, survivors' benefit, nursing benefit, funeral expense benefit, vocational rehabilitation benefit (created on July 1, 2008). If an employee receives the industrial accident compensation insurance benefit due to an industrial accident, the employer is not responsible for compensating the employees for the damage incurred by the accidents under the Labor Standards Act. The employer is also excused from civil liabilities within the range of the insurance benefit.

1. Medical care benefits
Medical care benefits shall provide for the total medical care expenses and be available at any medical institution insured by the Corporation, or at any institution designated by the Corporation, provided that, in cases of great disadvantage, expenses spent for medical treatment may be paid in lieu of the actual medical care.

2. Suspension benefits
Suspension benefits shall be provided for the period in which an employee is unable to work due to medical care needed from injury at work or contracting an occupational illness. The amount to be paid for a day shall be limited to 70% of the average wage. If the period of medical leave is three days or less, no payment shall be given.

3. Disability benefits
If a worker still remains handicapped upon completion of treatment received for an occupational injury or illness, the employer shall provide the handicapped worker, according to the level of disability, compensation equivalent to the sum of average wages multiplied by the number of days provided in the table (Attachment to the IACI).

4. Survivors' benefits
Survivors' benefits shall be paid to the surviving family of the worker who has died from a work-related cause. The benefits are 1,300 days of average wage, which can be rendered in either of the following two methods: ① 50% paid in a lump sum and 50% in pension; or ② 100% paid in pension.
5. Funeral expenses
Funeral expenses shall be paid for a deceased worker killed by a work-related accident. An additional payment equivalent to 120 days of the worker's average wage shall be provided to the entity performing the funeral service.

6. Nursing benefits
Nursing benefits shall be paid to those who receive medical care benefits pursuant to Article 61 as 1st or 2nd degree seriously disabled persons and to those who receive actual nursing services for constant or frequent nursing needs after treatment.

7. Lump sum compensation
If a worker who receives medical care benefits is also paid an injury-disease compensation annuity after three years of receiving medical care, then the employer may terminate the worker's service upon the fourth year as prescribed in Article 84 of the Labor Standards Act, in accordance with the provisions of the proviso of Article 23 ② of the Labor Standards Act (Article 80 of the IACI Act).

8. Injury-Illness compensation annuity
If a worker who has received medical care benefits continues to be in a state that meets all the requirements described in the following subparagraphs, after two years have passed since the start of the medical care, he/she shall be paid an injury-illness compensation annuity instead of wage replacement benefits (Article 66 of the IACI Act). Such a state includes:
1. The injury or illness remains uncured;
2. The degree of invalidity caused by the injury or illness meets the standards for invalidity grades prescribed by Presidential Decree;
3. The worker has not been employed because of the need for medical care.

9. Vocational rehabilitation benefit (created July 1, 2008)
For a worker who receives disability benefits or needs vocational training to be employed, expenses required for the training and vocational training allowance are subsidized.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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