VietNamNet Bridge – Enterprises that delay paying social insurance will be subject to a fine three times higher than the current level if the amended draft Social Insurance Law goes into effect.

The current fine was low enough that many enterprises delayed payment to use the money for business activities, preventing workers from enjoying the social insurance benefits they deserved.

The remark was made by Tran Thi Thuy Nga, head of the Social Insurance Department under the Ministry of Labour, Invalids and Social Affairs, at a workshop in Ha Noi yesterday, June 4.

The draft legislation will specify which workers receive social insurance and what benefits they should get. It also sets out rules on maternal leave and new benefits for those suffering from prolonged illness.

Legal experts agreed that the legal awareness of both employers and employees and the public had improved since the original law was implemented six years ago.

However, they said, problems remained – such as inconvenient administrative procedures, delayed payments and the State's failure to keep track of all workers who should receive social insurance.

The experts at the workshop, co-organised by the ministry and the World Bank, proposed that the amended Social Insurance Law specify the responsibilities of State management agencies in the field of social insurance, strengthen the punishment for violations and simplify administrative procedures.

The Ministry of Labour, Invalids and Social Affairs will continue to collect experts' opinions on the draft law in HCM City this week so as to complete a timely draft to submit to the Government.

It is expected that the law will be submitted to the National Assembly towards the end of the year.

Injured workers face slow claims process

The insurance claim process for accidents suffered by employees at work should be made simpler and more effective, experts declared at a workshop held in Ha Noi yesterday, June 4.

The Viet Nam Social Insurance Agency released statistics showing that about 5,500 workers get support from insurance companies every year following work accidents and occupational illnesses.

This number accounts for just 0.1 per cent of people who pay for social insurance, which includes labour accident insurance.

The workshop was co-hosted by the Viet Nam Social Insurance, the South Korea Workers' Compensation and Welfare Service, and the Korea International Co-operation Agency.

Nguyen Hung Cuong, deputy head of the Social Insurance Policy Department at Viet Nam Social Insurance, said there is a lack of specific regulations on labour accidents and occupational diseases, meaning many cases have not been clearly covered by existing insurance policies.

For example, if an employee is injured while participating in sports or cultural competitions as a representative of the company, or has to complete unplanned tasks during work hours, the responsibility of the insurance company to pay out is unclear, he said.

There is no detailed guidance on investigative procedures into labour accidents in the fields of radiation, petroleum exploration, transportation and military enterprises, he added.

According to the experts, if labour accident insurance policies are made clearer, victims of mishaps at work and occupational ill-health will have a better chance of receiving appropriate treatment to aid their recovery. They will also find it easier to apply for support if they are unable to return to work.

Last year, over 6,700 work accidents were reported nationwide, killing 606 people and costing organisations VND82.6 billion (US$3.9 million) for medical treatment, funerals and compensation.

Source: VNS