1. Reason for amendment

With the amendment of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance (Act No. 18036, promulgation on April 13, 2021 and enforcement on January 1, 2022) for reflection of the ratio of contract accidents to subcontract accidents and adjustment of insurance premium of large enterprises recording frequent accidents/deaths, the aim is to improve the provisions in keeping with such amendment, establish detailed regulations on the calculation method of the insurance balance ratio, and provide the basis for adjustment of increase/decrease ratio of individual performance rate.

2. Main content

A. Establishment of insurance balance ratio calculation method for the reflection of contract ratio to subcontract accidents (Article 17 of the draft)

○ Insurance benefit resulting from subcontract is reflected on the insurance balance ratio if fine for negligence is imposed on the contractor or if the contractor is investigated by the Prosecutor for criminal punishment, if insurance benefit is paid to a dispatched worker by the employer, or if the beneficiary or related beneficiary is investigated by the Prosecutor due to the employer’s violation of safety & health measures under the Occupational Safety and Health Act.

B. Adjustment of discount rate of insurance premium for large enterprises recording frequent accidents (Article 18 of the draft)

○ If the total number of integrated accidental deaths for the recent three (3) years is not less than three (3) persons, if the occurrence of industrial accidents was concealed, or if the occurrence of industrial accidents was not reported two (2) or more times, the discount rate of insurance premium is adjusted.