The Law of Ukraine

On Mandatory State Social Insurance against Industrial Accident and Occupational Disease that Caused Disability

Date of Entry into Force:
April 1, 2001

This Law defines legal basis, economic mechanism and organizational structure of mandatory state social insurance of citizens against industrial accident and occupational disease that caused disability or death of the insurants at work.

The tasks of insurance against industrial accident shall be:
- conducting preventive measures aimed at removal of harmful and dangerous industrial factors, prevention of industrial accidents, occupational diseases and other threats to health of the insurants that are caused by labor conditions;
- renewal of health and working capacity of the employees who suffered from industrial accidents or occupational diseases;
- reimbursement of material and moral harm to the insurants and members of their families.

Accident is a limited in time event or sudden influence on the employee of dangerous industrial factor or environment which happened in the process of doing by him/her of labor duties that harmed health or caused death. The list of circumstances under which insurance event occurs shall be determined by the Cabinet of Ministers upon submission of the specially authorized central body of executive power.

The Law shall apply to the persons who work under conditions of labor contract at the enterprises, in establishments, organizations regardless of ownership forms and type of business activity, the self-employed persons and the citizens – subjects of entrepreneurial activity.

Subjects of insurance against accident are the insurants and in some cases members of their families and other persons, the insured and the insurer. The insurant is a natural person in favor of which insurance is conducted. The insured are the employers and in some cases – the insurants. The object of insurance against industrial accident shall be life of the insurants, his/her health and ability to work.

Subject to mandatory insurance against accident shall be:
1) the persons who work under the conditions of labor agreement (contract);
2) pupils and students of educational establishments, clinical attending physicians, post-graduate students, persons working for doctor’s degree, who are engaged in any works during, before or after studies; during studies when they acquire professional skills; in the period of practical training (probation period), doing works at enterprises;
3) the persons who are held in correctional, curative labor, educational labor establishments and are engaged in labor activity at production of these establishments or at other enterprises under special agreements.

Voluntarily may be insured:
1) priests, clergymen and the persons who hold elective posts in religious organizations;
2) self-employed persons;
3) the citizens – subjects of entrepreneurial activity.

All insurants are members of the Fund of Insurance against Industrial Accidents. Registration of the insured by the insurer shall be attested by the insurance certificate.

Insurance against industrial accident is conducted by the Fund of Insurance against Industrial Accidents and Occupational Diseases of Ukraine – a non-commercial self-governed organization, which operates on the basis of statute approved by its board of directors. The Fund is a legal entity, has its seal with the State Emblem of Ukraine and its name, as well as the emblem approved by its board of directors. It acquires the rights of legal entity from the day of state registration of its statute in the specially authorized central body of executive power. The Fund is located in Kyiv.

Direct management of the Fund of Insurance against Industrial Accidents shall be conducted by:
- the board of directors consisting of the state’s representatives, the insurants, the employers. The board of directors of the Fund is created for a six-month period;
- executive board – a permanently operating executive body of the Fund’s board of directors. The Director of the Fund’s executive board is included into the Fund’s board of directors and has the right of deliberative vote.

The Law contains the list of social services and payments conducted by the Fund in case of accident.

Norms of the Law define documents which shall be the ground for adoption by the Fund of decision regarding social services or payments.

Insurance payments shall be conducted monthly on the days set by the Fund of Social Insurance against Industrial Accidents on the basis of the Fund’s resolution or decision of court. One-time aid shall be paid to the person suffered in a monthly term starting from the day of establishment of steady loss of capacity for work by MSEC (Medical Social Expert Commission), and in case of death of the person suffered – in a monthly term from the day of death of the insurant to the persons entitled thereto.

Payments appointed, but not received timely by the person suffered or the person entitled thereto, shall be conducted for the whole time passed, but no longer than free years before the day of application.

The Fund of Insurance against Industrial Accidents shall be financed at the expense of:
- employers’ contributions: for the enterprises – with deductions for gross expenditures of production, for budget establishments and organizations – from the funds allocated for their maintenance and provision. Insurance contributions shall be calculated within limit amount of salary (income) set by the Cabinet of Ministers of Ukraine; they are settlement amount during calculation of insurance payments;
- capitalized payments received in cases of liquidation of the insured;
- income received from temporary free money of the Fund on deposit accounts;
- money obtained from collection in compliance with the legislation of penalties and fines from the enterprises, as well as penalties from the employees guilty of violation of normative acts on labor protection;
- voluntary contributions and other receipts obtained in compliance with the legislation.

The disputes regarding amounts of insurance contributions, as well as volume of damage and rights to its reimbursement, imposition of penalties and other issues shall be settled according to the judicial procedure. Upon wish the person concerned may apply for settlement of dispute to the special commission at the executive board of the Fund of Social Insurance against Industrial Accidents. The commission consists of the state’s representatives, insurant and the insured, which enter it on the principles of publicity and on a par.
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