Chapter Accident Compensation The Accident Compensation System is designed to

Chapter 6. Accident Compensation The Accident Compensation System is designed to cover accidents incurred by employees in the line of duty (injury, sickness, disabilities, and death) or while commuting. Its objective is to compensate for damages sustained by relevant disasters (Compensation) and promote projects needed to help victimized employees return to social activities and support employees and bereaved families (Welfare Provision). Specifically, the system provides 10 types of Compensation, such as compensation for medical treatment and disabilities (annuity and lump sum payments) and for survivors (annuity and lump sum payments), and 21 types of Welfare Provisions (19 types from April 2006) for post-surgery treatments, prosthetic devices, and Special Support Funds (for Handicapped Employees and Bereaved Families). These Compensation programs and Welfare Provisions are carried out by the implementing organizations (designated by the NPA: 28 Office and Ministries, etc., 56 specified independent administrative institutions and the Japan Post), while the NPA works to achieve complete implementation, being tasked with setting standards and offering overall guidance and adjustment for these organizations. Section 1. Revision, etc. of Accident Compensation System Amendment of the Compensation Law According to the “Law concerning Amendment of Related Laws with Enforcement of the Postal Privatization Law, etc.”, the Compensation Law was subject to necessary amendments such as eliminating the Japan Post from among the implementing organizations stipulated under Article 2, Paragraph 1. The Article 4, Paragraph 2 of the Compensation Law was also amended according to the revision of the Remuneration Law based on the Remuneration Recommendation, and took effect from April 1, 2006. In addition, related NPA Rules were partially amended along with this Amendment of the Compensation Law. Improving Benefit Levels, etc. The maximum amount of the Special Support Fund for Handicapped Employees was raised to 15.4 million yen (from 14.6 million yen) in the case of accidents incurred in the line of duty, and to 9.75 million yen (from 9.10 million yen) in the case of accidents incurred while commuting. (Amendment of the NPA Rule 16-3) The Minimum Guaranteed Amount of Average Remuneration as the basis of estimating - 109 - compensation was revised in accordance with changes in the remuneration level of national public employees in the regular service. Section 2. Implementation of Accident Compensation The number of employees subject to the National Public Employees’ Accident Compensation Law is currently about 930,000 (including National Forest employees, employees of Specified Independent Administrative Institutions, the Japan Post, and part-time employees) as of July 2004. The number of cases which were recognized as accidents in the line of duty or accidents during commuting in FY2004 came to a total of 13,417 (accidents in the line of duty: 11,604; accidents during commuting: 1,813). (See Figures 6.1 and 6.2) Figure 6.1: Trends in the Number of Accident Compensation Cases (cases) 20,000 15,000 1,779 654 1,757 542 1,581 532 1,702 367 1,858 440 1,861 426 2,008 415 1,991 316 1,900 398 1,813 273 10,000 13,244 13,670 12,863 13,473 13,737 13,519 13,712 13,263 13,512 11,331 5,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (FY) Accidents in the Line of Duty (Injury) Accidents during Commuting Accidents in the Line of Duty (Illness) * Number of employees the Compensation Law is applied to: Approximately 930,000 as of July 1, 2004 Approximately 1,160,000 as of July 1, 2003 - 110 - Figure 6.2: Accident Compensation Cases by Causes or Situation Other Illnesses 115 On the Way Home 568 Infectious Hepatitis Illness Resulting from Injury 35 Incurred in the Line of Duty 123 Other Situations 137 During Recreational Activity 70 On Business Trip 94 While Commuting (in a special case such as after overtime work) On Coming to Office 1,245 While Commuting 1,813 Illness 273 On Duty 11,604 Injury 11,331 150 While Performing Duties 10,880 (unit: cases) The number of accident compensation cases and welfare provision cases processed during FY2004 came to a total of 34,114 (accident compensation: 27,359, welfare provision: 6,755), and involved total payments of approximately 12.3 billion yen (accident compensation: 10.4 billion yen; and welfare provision: 1.9 billion yen). (See Figure 6.3) Figure 6.3: Amount of Compensation and Welfare Provision Disability Special Pension 256 Suspension-of-Work Support 366 Survivors’ Special Pension 783 Others 191 Welfare Provision 1,930 12,335 Pension 5,221 Survivors’ Special Support 249 Others 276 (unit: million yen) Survivors’ Compensation Pension 3,842 Suspension-of-Work Compensation 1,062 Other Compensation 5,184 Medical Treatment Compensation 3.931 Disability Compensation Pension 1,273 Injury and Disease Compensation Pension 106 - 111 - Section 3. Management of Accident Compensation System Consideration for the Implementation System of Accident Compensation Procedures Each implementing organization responsible for implementing compensation is tasked with examining relevant cases to approve incidents as accidents in the line of duty before receiving any requests from affected employees and, upon approval, immediately notifying the affected employees and others of that effect. Under this system, the NPA, which takes the final responsibility for implementing compensation, carries out various measures to seek rapid and fair implementation. At the same time, the situations surrounding the implementing system for accident compensation procedures are changing. In this regard, given the perspective of achieving rapid and fair implementation of compensation, the NPA has decided to promote consideration for the future implementation system of accident compensation procedures. Specifically, in February 2006, the NPA set up a “Study Group on the Accident Compensation System” comprised of experts. Appropriate Management of the Compensation System The NPA held individual consultations or counseling with each implementing organization in regard to the authorization of accidents in the line of duty and accidents while commuting to and from work, decisions on the grade of disability, and other matters. Particularly for the Specified Independent Administrative Institutions, the NPA provided various counseling services, responses to inquiries, guidance and other support in order to ensure the prompt and fair implementation of compensation. When medical decisions are necessary, the Health Specialist Committee, which comprises members specializing in internal medicine, circulatory organs, psychiatry, orthopedic surgery and other areas, is consulted. Training In order to make the Accident Compensation system more effective, the NPA annually holds conferences and seminars for personnel in charge of managing this system at each Office and Ministry and Specified Independent Administrative Institutions. - 112 -

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