Module 4: Lecture: Workers Compensation Legislation (Continued).
d) Compensation Fund:
e) Benefits:
  1. Benefit Medical Examinations can be done at the MBOD or any designated Provincial Public Hospital. General Practitioners in areas with inaccessible services also do Medical Benefit Examinations but this is considered to be a temporary arrangement. Following the latest amendment in 2002, former miners are entitled to a free examination every 24 months.

  2. Procedure for medical practitioner to follow in the case of submitting a claim for an occupational disease (see Table 3).

    Table 3: Procedure for submitting a claim for an occupational disease under the Occupational Diseases in Mines and Works Act (ODMWA)
    1 The following forms must be submitted to the MBOD when submitting a claim (See handout "a" for the different forms):
    • Medical Form: GW 24/56 (single).
    • Tuberculosis (TB)*.
    • Worker identification and fingerprints: GW 24/17 (duplicate).
    • Labour history: Annexure to GW 24/64 or GW 24/16 (single).
    2. When the MBOD certifies that an occupational lung disease was diagnosed, the Compensation Commissioner will send the following form for completion:
    • GW 24/77: Application for a benefit.
    3. For a worker with TB who has suffered loss of earnings, the Compensation Commissioner will send the following form for completion as soon as the employer notifies the Compensation Commissioner that the worker has resumed employment:
    • * GW 24/78: Application for partial repayment of loss of earnings.

  3. The process of submitting a compensation claim confers the following benefits to workers should the claim be accepted: (see Table 4).

Table 4: Certificate grades used by the MBOD Certification Committee and their implications
Certification Percentage of disability Compensation a, b Frequency of benefit examinations
Nocompensable disease (NCD) < 10% None Every 2 years or when significant deterioration is found by medical attendant. Examinations are for life until death or second degree.
First degree 10% - < 40% Minimum compensation of R12 922 and maximum R36 156. It is salary based and the maximum salary allowed in the calculations is R2 300 per month. As above
Second degree 40% - 100% Maximum R80 509.20, if not previously compensated. For upgrading from first degree ("reclassification"), R44 353.20 maximum. No further benefit examinations.
a. Amounts at time of going to press. These and the maximum allowable salary for calculation purposes are increased from time to time.
b The formula for calculating the amount payable is listed in Table 5
Source: SIMRAC handbook of Occupational Health Practice in the Mining Industry. Chapter 14, Table 14.1 6

Table 5. Formula used to calculate compensation payment under ODMWA

ODMWA Formula:

(A x 12) x B: (subject to minimum and maximum amounts as per Table 4).

A is the worker’s monthly earnings up to an amount of R2,300. If the worker is no longer in the service of the mine, an estimate is made of what he would have been earning had he been in mine service at the time of certification.

B = 1.31 for first degree certification
B = 2.917 for second degree certification with no previous certification
B = 1.607 for second degree certification where the person had previously received a first degree award other than for tuberculosis.

f) How is compensation calculated:

Compensation for a worker certified first or second degree, is based on the salary in accordance with a formula predetermined by ODMWA. The minimum and maximum payments have been increased to R8,050 and R80,510 respectively from November 1, 1998. For a worker suffering from TB, compensation is in the form of 75% reimbursement for loss of earnings incurred while on treatment.

REFERENCES:

  1. Kew G, Ehrlich R I, Fitness to Work, Disability and Compensation. In Guild R, Ehrlich RI, Johnston JR, Ross MH, eds. Handbook of Occupational Health Practice in the South African Mining Industry, 1st edition, Johannesburg, South Africa, Safety In Mines Research Advisory Committee (SIMRAC), 2001; 257-293.

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