|
|
|
|
SARS poses problem for insurance in workplace
|
| 日期:
2003-12-30 16:31
編輯:
system
來源：
|
|
|
| |
No one knows right now whether we will see another outbreak of SARS in the months ahead. But there can be little doubt that we will be hearing plenty about the disease.
We have already had a report from the government-appointed expert committee, which identified "significant shortcomings of system performance". And we have had the Hospital Authority's review, which specified a number of procedural weaknesses. However, public opinion suggests that people, as well as systems, did not perform well enough. So now we have a Legislative Council Select Committee enquiry on the subject. Hopefully, the committee will win the public's trust and satisfy popular demand that officials are seen to be accountable.
Meanwhile, behind the scenes, SARS is having an impact on the insurance system that protects Hong Kong workers who suffer accidents or injuries on the job. Under the Employee Compensation Ordinance, employers are liable for the safety of their staff at work and must, therefore, secure employee compensation insurance. The insurance companies that sell these policies then cover themselves through reinsurance. Now, the reinsurance companies are expressing doubts about covering SARS as part of employee compensation.
Employee compensation is primarily paid out to construction workers or others engaged in similarly physically demanding, potentially dangerous activities. But it can also cover infectious disease spread in the workplace, more often including hospitals, clinics and old-age homes, but schools, offices or anywhere else as well.
The reinsurers are concerned because they cannot measure the risk. They cannot calculate how many people might catch SARS in a given workplace - it could be none, tens or hundreds. This, in turn, makes it impossible for them to calculate what to charge clients for coverage. Their customers, the direct insurance companies, have the same problem. We have statistical data that enable us to measure such risks as construction site accidents, car theft, house fires and so on. But SARS is a big unknown.
From January 1, 2004, the reinsurers are likely to restrict employee compensation coverage for all infectious diseases. One possibility is that the small print will be changed so such diseases are subject to the principle of "one victim, one event". According to this industry jargon, the deductible (the amount of a claim that the policyholder has to pay himself) would be calculated on a per-person rather than per-outbreak basis. But this could leave insurance companies with an incalculable risk hanging over their heads and no way to spread it.
In theory, as prudently run businesses, they could be left with no choice but to follow the reinsurers and limit the employee compensation coverage for SARS and other infectious diseases. In practice, employers and employees can rest assured that their interests will be protected.
There are several possible ways out of the problem. Some insurance companies may decide to pool risk among themselves. Some reinsurers might be tempted to take on a bit more risk in order to attract more business. In the worst-case scenario, the government could set up a fund, paid for by a levy on the insurance industry, something it has already done to ensure employee compensation coverage with regard to terrorist acts, another risk the insurance industry cannot measure.
At the end of the day, workers will be protected. But this may prove to be an important lesson on the limitations of the insurance industry. If we can't measure a risk, we can't spread it. And if we can't spread it, we can't cover it.
Bernard Chan is a Legislative Councillor (insurance constituency) |
|
|
|
|
|
| |
|
|
|
|
