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the above statement. The countries in which a system of compulsory sickness insurance exists and the periods during which disabilities resulting from accident are compensated out of sickness funds are as follows:
Austria, first 4 weeks.
Germany, fourth to ninety-first day.
Hungary, first 10 weeks.
Great Britain, beginning with fourth day.1
Luxemburg, first 13 weeks.
Norway, first 4 weeks.
Roumania, first 2 weeks.
Russia, first 13 weeks.
Servia, first 13 weeks.
In a considerable number of other countries systematic provision is made for voluntary sickness insurance, but inasmuch as all such systems are entirely voluntary, with membership depending on the initiative of the workman himself, they are properly omitted from a statement such as the above.
The entire burden of the accident compensation cost rests upon the employer in all but nine countries: Austria, Bulgaria, Germany, Greece, Hungary, Luxemburg, Montenegro, Roumania, and Russia. In these countries named the employees bear a part of the expense.
The acts of nearly all of the countries are framed with the view of obviating the necessity for instituting legal proceedings. If disputes arise the acts specify the necessary procedure for settlement by special arbitration tribunals or by ordinary law courts.
In most countries the adoption of the law carried with it the abrogation of all rights under liability laws for the persons concerned; in some countries the injured employee retains the right to sue under the general liability laws in cases of gross negligence on the part of the employer; while in a few cases the older liability laws are left undisturbed with the right to choose either method of compensation.
So far as the method of organization of insurance is concerned, the countries may be divided into two large groups, according to whether insurance is compulsory or voluntary.
I. COMPULSORY INSURANCE.
Two forms of compulsory insurance are differentiated—compulsory insurance and compulsion to insure; one enforcing compulsory insurance in prescribed institutions, the other enforcing the obligation to insure, but leaving free the choice of the insurance institution.
A, Compulsory insurance In prescribed Institutions.
1. In a Government institution with a monopoly of insurance: Norway, one State insurance bureau for all industries. Switzerland, a national accident insurance fund, maintained by the Confederation.
1 National Insurance Act has provisions to Umit duplication of sickness and compensation benefits.
2. In employers' compulsory mutual associations, controlled by the State: o. Organized on territorial lines.
(1) Luxemburg, one institution, for all industries.
(2) Hungary, two institutions—one for Hungary and one
for Croatia-Slavonia, including all industries.
(3) Austria, seven institutions, the whole country being
divided into seven districts for all industries, in addition to which there are separate institutions for railroads and mining.
b. Organized on industry lines.
(1) Germany, 66 industrial institutions, each covering the
entire country for one group of industries, except that some industries have several associations, each covering a specified area; in addition there are 48 agricultural institutions.
(2) Greece, where the law applies to mines, quarries, and
metallurgical establishments only, has a special miners' fund.
B. Compulsory insurance with choice of insurance institution,
1. Private companies or mutual associations with State institu
a. Italy has the National Industrial Accident Insurance Insti
tution; except that for navigation and for the Sicilian sulphur mines, compulsory mutual associations have been created bv special legislation.
b. Netherlands has the Royal Insurance Bank. The employers
may insure in private insurance companies or may be permitted to carry their own insurance, but all compensation is paid by the Royal Insurance Bank, which deals with the employer or insurance company.
2. Private companies or mutual associations without State insti
tution competing: Finland, except that for seamen a special compulsory employers' mutual association under strict Government control has been established by special law.
n. VOLUNTARY INSURANCE.
A. Private companies or mutual associations with State institution competing,
1. Sweden, with State Insurance Institute.
2. France, with National Accident Insurance Fund, which, how
ever, is not permitted to provide against temporary disability. Compulsory insurance is provided for seamen in a special Government institution.
B. Private companies or mutual associations without State competition.
1. Belgium, while the law specifies that the National Retirement
Fund must provide accident insurance, this provision of the law has never been put into operation.
2. Denmark, where insurance is voluntary, except that the law
requires compulsory insurance of seamen, either in mutual associations or in insurance companies, and where a State institution exists for voluntary insurance of fishermen and seamen not covered by the compulsory law.
3. Great Britain and the British colonies.
Wherever there is compulsory insurance in prescribed institutions controlled by the State, there is of course no question as to the security of payments. Such is the case in Norway, where a Government bureau provides the insurance, and in Switzerland, where the National Accident Insurance Fund is maintained by the Confederation. In Germany, Austria, Hungary, Luxemburg, the Netherlands, and Russia the law either specifically states or implies the guarantee of tho solvency of the institutions providing the insurance. In Netherlands the injured workman is protected by the equivalent of insurance in the Royal Insurance Bank, irrespective of the institution in which the employer carries the insurance; the uninsured employer and the private insurance companies are required to give satisfactory guarantees to the Royal Insurance Bank. In Greece the payments are guaranteed by the national miners' fund.
The second method of State guarantee is by a special national fund, from which the compensation is paid in cases of insolvency, either of the employer or of the insurance carrier. The sources of revenue of these funds show considerable differences. In Italy, notwithstanding the system of compulsory insurance, a fund has been organized under the supervision of the Government Bank of Deposits and Loans, supported by fines for noncompliance with requirement to insure, or other fines, and by the compensation due in fatal cases but not paid because of absence of survivors. In France the guarantee fund is managed by the National Old Age Retirement Fund and is supported by special taxes upon all employers covered by tho act, but this fund guarantees pension payments only, while compensation for temporary disability is secured by a preferred claim on the assets of the employer. In Belgium tho guarantee fund is managed by tho National Retirement Fund and is supported by a tax levied only upon those employers who do not carry insurance.
Where no State guaranty exists guaranties must be exacted from insurance companies or from the individual employer. Wherever insurance is either voluntary or there is a choice of insurance institutions, the Government protects the insured employee by requiring the insurance company to maintain proper reserves or to make guarantee deposits with the Government, or by both methods combined.
In the case of uninsured employees, their interests are usually protected by giving them a preferred claim upon the assets of the employer. In certain countries, where there is no compulsory insurance, the employer is not permitted to carry the liability for continuous payment of pensions in cases of death or permanent disability, but must provide for such payments through insurance institutions.
In Belgium both reserves and guarantee deposits are exacted; in addition, the capitalized value of pensions must be deposited in the National Retirement Fund. There is, therefore, no necessity for giving the injured employee a preferred claim on the assets of the employer.
Finland requires the payment of the capitalized value of the pension to an insurance company in cases where no insurance has been taken. The guarantee of the pension payments of the uninsured employer is limited to a preferred claim upon his assets in case of insolvency in the following countries: Denmark, Great Britain, Sweden, and the British colonies.
In Spain both reserves and deposits are required from insurance carriers, but in case of uninsured employers no special provision is made in case of insolvency.
ANALYSIS OF PRINCIPAL FEATURES OF THE LAWS.
Compensation laws have been enacted in 41 foreign countries, and are summarized in the following pages. The law of New Brunswick, covering compensation for industrial accidents, is not here included because, while very much broader than the former laws of negligence, it is still an employers' liability law rather than a workmen's compensation law.
Date of enactment. March 5,1908; in effect January 1,1909.
Injuries compensated. Injuries by accident arising out of and in the course of the employment which cause death or disable a workman for at least two weeks from earning full wages at the work at which he was employed. Compensation is not paid when injury is due to serious and willful misconduct of the workman, unless the injury results in death or permanent disablement.
Industries covered. Railways, factories, mines, quarries, engineering work, construction, repair and demolition of buildings, either over 30 feet in height, or with the use of mechanical power.
Persons compensated. Any person employed in manual labor, and other employees whose remuneration does not exceed $1,200 a year.
Government employees. Government employees are covered by this act if employed in establishments or undertakings to which the law applies.
Burden of payment. Entire cost of compensation rests upon employer. Compensation for death. (a) To those entirely dependent on earnings of deceased, a sum equal to three
years' earnings, but not less than $1,000, nor more than $1,800. (6) To those partially dependent on earnings of deceased, a sum less than above amount, to be agreed upon by the parties or fixed by arbitration.
(c) Temporary payments previously made to be deducted from the above
(d) If deceased leaves no dependents, reasonable expenses of medical attendance
and burial, but not to exceed $200.
Compensation for disability. (1) A weekly payment of not more than 50 per cent of employee's weekly earnings, but not exceeding $10 a week, for employees 21 years and over, or earning $10 a week and over; (2) 100 per cent of employee's earnings, but not exceeding $7.50 a week for employees under 21 years of age and earning less than $10.
For partial disability, such weekly payment "as may appear proper " with regard to the difference between employee's average weekly earnings before the accident and average weekly amount which he is earning or able to earn after the injury, but not to exceed the amount of that difference.
A lump sum may be substituted for the weekly payments after six months, on the application of the employer, the amount to be settled by agreement or by the courts.
Revision of compensation. Weekly payments may be revised at request of either party.
Insurance. Employers may make contracts with employees for substitution of a scheme of compensation benefit or insurance in place of the provisions of the act, if the attorney general certifies that the scheme is not less favorable to the workmen and their dependents than the provisions of the act, and that a majority of the workmen are favorable to the substitute. The employers are then liable only in accordance with the provisionsof the scheme.
Security of payments. In case of employer's bankruptcy, the amount of compensation due under this act, up to $500 in any individual case, is classed as a preferred claim, or when an employer has entered into a contract with insurers in respect of any liability under the act to any workman, such rights of the employer, in case he becomes bankrupt, are transferred to and vested in the workman.
Settlement of disputes. (33) Disputes arising under the act are settled by arbitration, either by an arbitration committee representing employer and employees, or by an arbitrator, or, in absence of agreement, by the court. The attorney general may confer upon such arbitration committee any or all of the powers of courts in connection with the act.