According to the International Labor Organization (ILO), more than 2.7 million workers die each year as a result of work-related accidents and illnesses.

WIBA: Promoting worker safety and financial security

This translates to a daily headcount of almost 7,400 workers per day. The ILO also estimates that 395 million workers worldwide suffered non-fatal workplace injuries in November 2023.

These staggering statistics underscore the current challenges in ensuring safe and healthy work environments around the world.

whom Kenya4,357 workers were involved in accidents at various workplaces between July 1, 2023 and May 1, 2024, according to the Directorate of Occupational Safety and Health Services.

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Of them, 118 were fatal, which represents three percent of the total.

To address the growing need for safe workplaces, Kenya has enacted and implemented laws and guidelines to protect the well-being of its workforce.

These include the Employment Law of 2007, the Occupational Safety and Health Act of 2007 and the Workers’ Injury Benefits Act (WIBA) which was also enacted in 2007.

The WIBA Act, which replaced the repealed Workers’ Compensation Act, serves as a vital shield that protects employees from the financial and emotional devastation that accompanies work-related injuries and illnesses.

Under this law, all employers must obtain and maintain an insurance policy with an approved insurer for their employees.

How WIBA insurance works and what it covers

This ensures that in case an employee is injured at work or suffers an ailment as a result of his or her working conditions, he or she is entitled to compensation for the same.

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This makes WIBA a mandatory insurance product for employers, ensuring employees are protected from the risk of financial hardship that may arise from workplace incidents.

According to the Association of Kenya Insurers (AKI) Industry Report 2022, insurance covers arising from Workers’ Injury Benefits Act (WIBA) recorded a gross written premium (which is the total amount of money an insurer collects from its customers in exchange for insurance policies) of KES 13.3 billion in 2022, an increase of 9.85% compared to KES 12, 15 billion in 2021.

WIBA covers a wide range of benefits, including medical expenses, wage replacement, disability payments, and death benefits.

This comprehensive coverage ensures that workers and their families do not have to bear the financial burden alone. Ensures workers receive the support they need to recover and rebuild their lives by requiring employers to provide insurance coverage.

To benefit from WIBA, employees must first report any work-related injury or illness to their respective employer when it occurs. In turn, employers are required by law to report these cases to their respective insurance provider within seven days of notification, who will begin the process of evaluating the report.

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Once the respective report has been validated, the injured employee is authorized to file a claim for compensation within 12 months from the date of the accident. The amount of compensation is calculated based on the severity of the injury, the potential loss of income that will be incurred, and other related factors.

WIBA plays a critical role in Kenya’s employment framework by serving to protect employees from the financial repercussions of work-related injuries and illnesses. WIBA advocates for various forms of compensation for employees.

One of the many benefits is coverage of medical treatment costs resulting from work-related injuries or illnesses. This includes doctor consultations, hospital visits and medication expenses, ensuring that employees receive the necessary quality healthcare without financial strain or hardship.

Second, if an employee is temporarily unable to work due to an injury, they are compensated for lost wages. This is typically paid as a percentage of the employee’s earnings during their recovery period.

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In the event that an injury causes permanent disability, WIBA pushes for compensation based on the degree of disability. The level of compensation is calculated using a predefined scale, ensuring fairness and adequate financial support.

However, in the unfortunate event of a work-related death, WIBA provides legislation that guarantees compensation to the dependents of the deceased employee. This compensation helps family cope with loss of income after the death of their main breadwinner.

In addition, funeral expenses are covered for employees who die as a result of a work accident, easing the financial burden on their families at such a difficult time.

Another benefit of WIBA is how it boosts coverage for illnesses contracted as a direct result of an employee’s work environment. Employees who suffer from these occupational diseases are entitled to the same benefits as those injured by work accidents.

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Challenges and benefits of compliance with the Workplace Compensation Law

Workplace injuries and illnesses can significantly impede an employee’s ability to earn and live off their respective income, as the costs associated with medical treatment or disability can be overwhelming.

WIBA steps in to ensure that employees do not bear the full brunt of these incidents alone and instead steps in to provide a safety net that boosts financial support from their employers when it is needed most.

However, WIBA’s success depends on continued collaboration between employers, employees and the broader government.

By ensuring WIBA compliance and leveraging the expertise of insurers, companies can protect their employees and create safer, healthier workplaces for everyone.

The author is Dominic Kamonjo, Managing Director of Retail and SME at Minet Kenya

The opinions expressed here are those of the author and in no way represent the position of TUKO.co.ke.

Source: TUKO.co.ke