Compensation for occupational injuries and diseases: Benefit increase

The Minister of Employment and Labour anounced the amendment of Schedule 4 of the Compensation for Occupational Injuries and Diseases Act no 130 of 1993 (COIDA).

The amendment introduces a new method of calculating pension lump sums and monthly pension benefits made available to injured employees who sustained injuries on or after the 1st of April 2019. The amendment subsequently requires Rand Mutual Assurance (RMA) to implement an increase in the monthly Constant Attendance Allowance (CAA) benefit, the Permanent Disability (PD) lump sums and Permanent Disability (PD) monthly pensions.

The new method of calculation includes the use of actual earnings for PD lump sums and PD monthly pensions and an increase in minimum and maximum compensation.

When using the actual earnings, and where an employee’s benefit amount is lower than the minimum compensation amount prescribed by the Act, RMA will pay the minimum amount to the employee. This rule applies to both PD lump sums and PD monthly pensions.

For the employees whose benefits are capped to the maximum compensation, RMA will ensure that the affected employee is not negatively impacted, provided that the employer has signed up for our value-added Non-COID products such as the Augmentation benefit.

The new and backdated payment for the CAA, a benefit exclusively for 100% disabled pensioners, was implemented on the 20th of November 2020 with the November month pension run.

The new minimum and maximum compensation based on the actual accident earnings at the time of the accident will be implemented for all new disablement benefits, both PD lump sums and PD monthly pensions effective on the 24th of November 2020.

The new minimum and maximum compensation based on the actual accident earnings at the time of the accident will be implemented for all existing disablement benefits where the accident happened on or after the 1st of April 2019 to the 24th of November 2020.

This means that RMA will do a once-off back-payment to all affected beneficiaries.

To view the 2020 COID benefit tariffs please click here. To view the RMA Employer Guide please click here for assistance when reporting claims for occupational injuries and diseases.

Alternatively you can contact RMA via any of the following channels of communication:

Telephone: 0860 222 132

E-mail: contactcentre@randmutual.co.za Website: https://randmutual.co.za/