estimating and calculating costs of workplace accident...
TRANSCRIPT
Estimating and Calculating
Costs of Workplace Accident
in Agriculture Industry
Anita Abd Rahman, Mohd Rafee Baharudin, Azizah Ahmad, Harun Bakar,
Afida Miskam, Solehan Azmi, Saiful Anuar & Ahmad Fuad Mansur
Presentation Outline
Introduction
Objectives
Methodology
Results
Conclusion
Introduction
In the context of OSH, the term ‘agriculture’ is
generally used in a broad sense including all activities
directly related to cultivating, growing, harvesting and
primary processing of agricultural products, animal
and livestock breeding including aquaculture, and
agroforestry.
The term also refers to all agricultural undertakings,
irrespective of size.
Introduction
Agriculture ranks among the most hazardous
industries.
Farmers are at very high risk for fatal and nonfatal
injuries.
Farming is one of the few industries in which family
members (who often share the work and live on the
premises) are also at risk for fatal and nonfatal injuries.
Introduction
In Malaysia, agriculture sector, the 4th largest
contributor to the GDP of RM 57 M.
• The 3rd largest industrial employment in Malaysia.
• The level of OSH compliance is still an issues to be
look into.
Introduction
The variable working conditions in agriculture can be
compressed into some specific features, which increase
the risk of occupational accidents :
The work is carried out in the open air, exposing the
workers to climatic conditions.
The work is of a seasonal nature and certain tasks are
urgent in specific periods.
Introduction
A variety of tasks must be performed by the same
person.
There is great variation in working postures and the
length of the tasks performed.
and many others.
Introduction
The right to be safe and healthy has been
acknowledged as a matter of national and international
interest.
Recently, there was an interest in the economics of
OSH which focusing on estimating costs in a
workplace accidents.
Introduction
The general approach taken in aggregate OSH cost
research is from the bottom-up, generating totals for
fatal and nonfatal work-related injuries and illnesses,
identifying a range of worker, employer and social
costs, and matching costs to incidents.
Introduction
Employer costs
Collateral damage to equipment and materials.
Downtime. (the production process may be halted due
to an accident).
Absence of the insured or sick worker.
Negative effects on coworkers. Coworkers may be
distracted or suffer a loss of morale as a result of an
injury or illness episode.
Introduction
Employer costs
Reduced productivity when workers’ health is impaired.
Costs of administrative response.
Additional recruitment costs.
Introduction
Worker costs
direct financial cost arises when workers must pay for
medical care and pharmaceuticals without being fully
reimbursed by either the employer or employment
injury insurance schemes.
Introduction
Costs to society
costs of administering the public OSH system
claims on insurance systems other than
employment injury insurance
Introduction
Accident Data in Agriculture Sectors
2011 2012
2375
cases
2267 cases
- Fatal = 55 workers
- Disability = 2212 workers
(Statistics of Labor and Human Resources,
2012).
Objective
The main objective of this study is to estimate and
calculate the cost of workplace accidents (costs to the
employer, workers and society) in the agricultural industry.
Methodology
Type of study
Cross-sectional study (12 months period)
20 case studies
Study Location
Region States
Northern Perak, Perlis, Kedah, Penang
Central Selangor, Wilayah Persekutuan, N. Sembilan
Southern Melaka, Johor
Eastern Kelantan, Terengganu, Pahang
Borneo Sabah, Sarawak
Study Population
Conceptual framework
Inclusive Criteria
Only SOCSO’s.
Industrial classification codes of 01111, 01115 and
01117.
Completed cases for the year 2012.
Sample size
540 respondents
case study
Sample size by region
Region Cases
Northern 126
Central 154
Southern 61
Eastern 70
Borneo 56
Total 540
Sample size by sector
Sector Cases %
Palm oil 401 85.9%
Rubber 17 3.6%
Paddy 16 3.4%
Palm oil & Rubber 33 7.1%
Total 540 100%
Study Instruments Records of cases
Questionnaires (reliability of 0.89)
Interview
Formula Conceptual
Framework
Calculation of Costs
Results
Gender Distribution
Nationality vs Agric. Sector
Oil Palm Rubber Paddy Total
Local 209 36 16 466
Foreign 258 21 - 74
Total 467 57 16 540
Type of Injury vs Nationality
Type of injury Local (%) Foreign (%) Total (%)
TD 212 (81.2) 235 (84.2) 447 (82.7)
PD 31 (11.9) 19 (6.8) 50 (9.3)
F 18 (6.9) 25 (9.0) 43 (8.0)
261 (48.3) 279 (51.7) 540 (100)
Accident cost according to types of
accident (Sch. 9 NADOPOD) Cod
e
Description Mean Min Max
100 Fall of persons 6,982.52 65 168,340.4
200 Struck by falling objects 1,751.18 70.04 29,885.32
300 Stepping on, striking against or struck by
objects including falling objects
17,267.19 106.52 549,526.9
400 Caught in or between objects 1,846.06 102.84 13,813.66
500 Overexertion or strenuous movements 70,466.45 389.55 270,022.7
800 Exposure to or contact with harmfull
substances or radiations
875.14 115 6,905.91
900 Other types of accident, not elsewhere
classified,
26,910.88 86.78 453,602.2
Accident cost according to types of
injury (Sch. 10 NADOPOD)
Code Description Mean Min Max
10 Fractures 7,108.87 70.04 64,060.47
20 Dislocation 3,183.17 202.26 25,276.79
25 Sprains and strain 2,705.77 87.27 29,885.32
30 Concussions and other internal injuries 92,267.83 142.17 549,526.9
41 Other wounds 9,180.79 86.78 364,923.9
50 Superfial injuries 1,333.25 105.78 25,445.71
55 Contusions and crushings 36,051.4 96.66 342,926.7
TD Cost (employer)
Type of cost RM
Direct
Damage cost 6,298.00
Medical cost 16,508.00
Funeral management cost 0.00
Indirect
Employer extra payment cost 33,12.43
PERKESO extra payment 57.95
Production reduction cost 83,457.14
Investigation cost 24,614.00
Total 13,4247.52
TD Cost (worker)
Type of cost RM
Direct
Damage cost 16,247.00
Medical cost 1,741.00
Funeral management cost 0.00
Indirect
Unpaid payment cost 67,045.81
Lost future income cost 0.00
Rehabilitation cost 2,066.00
Travelling cost 5,991.00
Total 93,090.81
TD Cost (society)
Type of cost RM
Direct
Compensation cost 93,089.92
Medical cost 13,811.00
Funeral cost 0.00
Indirect
Rehabilitation cost 19,405.00
Future compensation cost 0.00
Total 12,6305.92
TD Cost Summary
Variables RM RM
Total Direct Cost 147,694.92 120,585.69
Total Indirect Cost 205,949.33 305,996.86
Grand Total 353,644.25 426,582.55
Ratio (Direct: Indirect) 1 : 1.4 1 : 2.54
Cost/worker 1,768.22 1,815.24
PD Cost (employer)
Type of cost RM
Direct
Damage cost 0.00
Medical cost 1,200.00
Funeral management cost 0.00
Indirect
Employer extra payment cost 490.97
PERKESO extra payment 8.59
Production reduction cost 124,600.00
Investigation cost 3,593.42
Total 129,892.98
PD (worker)
Type of cost RM
Direct
Damage cost 2,755.00
Medical cost 0.00
Funeral management cost 0.00
Indirect
Unpaid payment cost 7,040.23
Lost future income cost 11,7558.81
Rehabilitation cost 3,987.00
Travelling cost 3,160.00
Total 134,501.04
PD Cost (society)
Type of cost RM
Direct
Compensation cost 318,230.45
Medical cost 6,578.90
Funeral cost 0.00
Indirect
Rehabilitation cost 6,555.00
Future compensation cost 92,159.94
Total 423,524.29
PD Cost Summary
Variables RM RM
Total Direct Cost 328,764.35 74,874.29
Total Indirect Cost 359,153.96 266,387.00
Grand Total 687,918.31 341,261.29
Ratio (Direct: Indirect) 1 : 1.03 1 : 3.56
Cost/worker 22,190.91 17,961.12
F Cost Summary
Variables RM RM
Total Direct Cost 25,688.88 442,099.00
Total Indirect Cost 3512,275.54 138,860.32
Grand Total 3,537,964.42 580,959.32
Ratio (Direct: Indirect) 1: 1.4 1 : 0.31
Cost/worker 252,711.74 23,238.37
Employer
Type of cost RM
Direct
Damage cost 23,445.00
Medical cost 44,266.00
Funeral management cost 13,850.00
Indirect
Employer extra payment cost 6,607.52
PERKESO 115.84
Production lost cost 87,6371.43
Investigation cost 83,776.41
Total 1,048,432.20
Worker
Type of cost RM
Direct
Damage cost 20,232.00
Medical cost 3,666.00
Funeral management cost 3,520.00
Indirect
Payment cost 110,684.04
Daily Wages cost 117,558.81
Rehabilitation cost 8,612.00
Travel cost 12,433.00
Total 276,705.85
Society
Type of cost RM
Direct
Compensation cost 897,558.30
Medical cost 34,529.90
Funeral cost 120,000.00
Indirect
Rehabilitation cost 44,910.00
Future compensation cost 352,8978.96
Total 462,5977.16
Cost Summary
Variables RM
Total Direct Cost 1,161,067.20
Total Indirect Cost 4,790,048.01
Grand Total 5,951,115.20
Ratio (Direct: Indirect) 1 : 4.13
Cost/worker 11,357.09
Examples of case study
No Incident descrip. RM Control measures RM
1 TD Falling while cutting
grass
3,203.14 Administrative control
(additional working
schedule routine)
810.00
2 TD Palm frond drop onto
head
821.53 Personal Protective
Equipment (helmet)
420.00
3 TD Fertilizer fall on victim
while removing/drop
fertilizer from lorry
11,632.36
Eliminate & engineering
control
(close the drain and build
fertilizer store)
40,000.00
4 TD Victim accidentally
kick a stump while
carrying oil palms by
using trolley
646.50
Engineering control (mini
tractor)
35,000.00
5 PD Palm frond hit the
eyes
170,948.36
Personal Protective
Equipment
(goggles)
41,760.00
No Incident descrip. RM Control measures RM
6 PD Chemical spillage
9,458.87 Administrative control
-Safety talk
126.00
7 F Workplace accident
453,602.16 Eliminate
Administrative control
2,012.00
Conclusion
Estimation and calculation of agriculture workplace
accident has a great variance between cases.
Indirect cost 4 times higher than the direct cost
An organisation should starts estimate and calculate
the costs of workplace accident as to prevent further
economic losses and investing on prevention control
measures.
Make used of OSHACC.