1: WEBTEXT/50555/65126/E98RUS01.htm
Russian Federation. Act No. 125-FZ of 24 July 1998 on compulsory social insurance against accidents at work and occupational diseases
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RUSSIAN FEDERATION

Act No. 125-FZ of 24 July 1998 on compulsory social insurance against accidents at work and occupational diseases

This Act establishes the legal, economic and organizational basis for compulsory social insurance against accidents at work and occupational diseases in the Russian Federation and determines the procedure for compensation for injury to the life and health of an employee during fulfilment by the latter of his or her duties under an employment contract or in other cases provided for by this Act.


CHAPTER I. GENERAL PROVISIONS

CHAPTER II. INSURANCE PROVISION

CHAPTER III. RIGHTS AND OBLIGATIONS OF SOCIAL INSURANCE ACTORS

CHAPTER IV. RESOURCES FOR THE IMPLEMENTATION OF COMPULSORY SOCIAL INSURANCE AGAINST ACCIDENTS AT WORK AND OCCUPATIONAL DISEASES

CHAPTER V. CONCLUDING AND TRANSITIONAL PROVISIONS


CHAPTER I. GENERAL PROVISIONS

Section 1. Aims of compulsory social insurance against accidents at work and occupational diseases

(1) Compulsory social insurance against accidents at work and occupational diseases is a form of social insurance and provides for:

(2) This Federal Act shall not limit the right of insured persons to claim compensation, in accordance with the legislation of the Russian Federation, in excess of the insurance provided under this Federal Act.

(3) State authorities of the constituent regions of the Russian Federation, bodies of social self-government, as well as organizations and citizens which employ workers shall be entitled, in addition to the compulsory social insurance under this Act, to establish, on their own account, other forms of employee insurance provided for by the legislation of the Russian Federation.

Section 2. Legislation of the Russian Federation on compulsory social insurance against accidents at work and occupational diseases

The legislation of the Russian Federation on compulsory social insurance against accidents at work and occupational diseases is based on the Constitution of the Russian Federation and is composed of the present Act, federal laws passed in accordance with it and other standard-setting legal acts of the Russian Federation.

If an international treaty signed by the Russian Federation provides for regulations other than those under this Act, such regulations under the corresponding international treaty shall be applied.

Section 3. The main terms used in this Federal Act

For the purpose of the present Act, the principal terms are defined as follows:

-object of compulsory social insurance against accidents at work and occupational diseases: property (material) interests of physical persons in connection with injury to their health or to their occupational ability, or in connection with their death as a result of an accident at work or occupational disease;

-insurance actors: the insured person, the insurant, the insurer;

the insured:

-a physical person covered by compulsory social insurance against accidents at work and occupational diseases in accordance with provisions of Subsection 5(1) of this Federal Act;

-a physical person whose health was impaired as a result of an accident at work or occupational disease, confirmed in the prescribed manner, and which brought about occupational disability;

-the insurant: a juridical person of any organizational/legal type (including a foreign organization carrying out its activity on the territory of the Russian Federation and employing citizens of the Russian Federation) or a physical person employing workers eligible for compulsory social insurance against accidents at work and occupational diseases in accordance with Subsection 5(1) of this Act;

-the insurer: the Social Insurance Fund of the Russian Federation;

-event insured against: health impairment sustained by the insured person as a result of an accident at work or occupational disease, confirmed in the prescribed manner and which results in the insurer's responsibility to grant insurance provision;

-accident at work: an event as a result of which the insured suffered an injury or sustained other health impairment during fulfilment of his or her duties under the employment contract or in other circumstances, provided for under this Federal Act, on the insurant's territory or outside it, as well as en route to or from work on a means of transportation provided by the insurant, and which resulted transfer of the insured to another job, his or her temporary or permanent occupational disability, or death;

-occupational disease: chronic or acute disease of the insured as a result of his or her exposure to occupational hazard(s) which brought about temporary or permanent loss of occupational ability;

-insurance contribution: compulsory payment under compulsory social insurance against accidents at work and occupational diseases, calculated according to the insurance rate and increment to the insurance rate, paid by the insurant to the insurer;

-insurance rate: the rate of insurance contribution calculated on the basis of all types of income of the insured person;

-insurance provision: compensation for injury, as a result of an event insured against, to the insured persons's life and health, in the form of a monetary amount paid by the insurer to or indemnifying the insured person or persons entitled to it under this Act;

-occupational risk: probability of injury to health or death of the insured person as a result of fulfilment of his or her duties under the employment contract or in other cases provided for by this Federal Act;

-class of occupational risk: rate of industrial injuries, occupational diseases and compensation under insurance provision typical of the given industry or subindustry of the economy;

-occupational ability: a person's ability to perform work in a given occupation, of a given volume and quality;

-degree of loss of occupational ability: expressed in percentage of permanent loss by the insured of the ability to carry out occupational activity that existed before the occurence of the event insured against.

Section 4. Main principles of compulsory social insurance against accidents at work and occupational illnesses

The main principles of compulsory social insurance against accidents at work and occupational diseases are as follows:

-there are guaranteed rights of the insured person to insurance provision;

-there is an economic interest of insurance actors in improving working conditions and safety at work, and in reducing occupational injuries and diseases;

-there must be compulsory registration as insurants of all persons employing workers covered by compulsory social insurance against accidents at work and occupational diseases;

-there must be obligatory payment of insurance contributions by insurants;

-insurance rates must differ depending on the class of occupational risk.

Section 5. Persons covered by compulsory social insurance against accidents at work and occupational diseases

(1) The following persons shall be covered by compulsory social insurance against accidents at work and occupational diseases:

-physical persons performing work under an employment contract concluded with an insurant;

-physical persons convicted for a prison term and engaged in work by an insurant.

-physical persons engaged in work under a civil/legal contract shall be liable to compulsory social insurance against accidents at work and occupational diseases if, according to the said contract, the insurant must pay insurance contributions to the insurer in respect of these persons.

(2) This Act shall be applicable to citizens of the Russian Federation, foreign nationals and persons without citizenship, if not provided for otherwise by federal laws or international treaties signed by the Russian Federation.

Section 6. Registration of insurants

The registration of insurants shall take place:

-when the insurants are juridical persons: within ten days after their official state registration;

-when the insurants are physical persons, employing workers under an employment contract: within ten days after signing an employment contract with his or her first hired employee.

Registration shall be confirmed by an insurance certificate of a form prescribed by the insurer.

Re-registration of insurants shall take place within the time period established by the insurer.

Section 7. Right to insurance provision

(1) The right to insurance provision arises on the day the event insured against occurs.

(2) If the insured person dies as a result of an event insured against, the following persons shall be entitled to insurance benefits:

-disabled persons dependent on the deceased or entitled to provision on his or her part;

-child of the deceased born after his or her death;

-one of the parents of the deceased, spouse of the deceased or other family member irrespective of his or her occupational ability who does not work and cares for children, grandchildren, brothers and sisters of the deceased under 14 years of age or, even when they are 14 years of age or older, if they need outside help for medical reasons confirmed by an establishment of the state service for medical/social expert examination ("medical/social expertise establishment") or by a medical establishment of the state health care service;

-persons, once dependent on the deceased, who become disabled within five years after his or her death.

In the event of death of the insured person, one of his or her parents, spouse or other family member, who does not work and cares for children, grandchildren, brothers or sisters of the deceased insured person, who became disabled in the period when he or she was looking after them, retain the right to insurance benefits after they ceased looking after the said persons. The dependence of minors shall be assumed and needs no proof.

(3) Insurance benefits shall be paid, in the event of death of the insured person, to:

-minors until they reach 18 years of age;

-students, who are older than 18 years but younger than 24 years, until the end of studies in educational institutions of full-time tuition;

-women who are at least 55 years of age and men who are at least 60 years of age: for the rest of their lives;

-disabled persons: during the period of their disability;

-one of the insured person's parents, spouse or other family member who does not work and cares for children, grandchildren, brothers or sisters of the deceased insured person, once dependent on the latter, until they reach 14 years of age or their health condition has changed.

(4) The right to insurance benefits when the insured person died as a result of an event insured against, may be granted by a court decision to disabled persons which had some earnings when the insured was alive, if part of the earnings of the insured person constituted a permanent and principal source of livelihood of the disabled person.

(5) Persons whose right to compensation for injury has been previously established according to legislation of the USSR or legislation of the Russian Federation on compensation for injury resulting from accident at work, occupational disease or other health impairment connected with performing duties of the job, shall be entitled to insurance provision under this Act on the date that it comes into force.

CHAPTER II. INSURANCE PROVISION

Section 8. Types of insurance provision

(1) Insurance provision shall take place:

(2) Additional expenses listed in Paragraph (iii) of Subsection (1) above shall be covered by the insurer if the medical/social expertise establishment determines that the insured person needs such a form of assistance, provision or care. Such expenses shall be indemnified in the manner prescribed by the Government of the Russian Federation.

If the insured person is entitled to several forms of free or privileged forms of assistance, provision or care under this Federal Act and other federal laws or standard-setting legal acts of the Russian Federation, he or she has the right to choose the corresponding form of assistance, provision or care on only one ground.

(3) Earnings lost by the insured person in the form of remuneration for work under a civil/legal contract which does not provide for the employer's liability for payment of insurance contributions to the insurer, as well as in the form of author's fees, on which contributions have not been paid, shall be compensated for by the party which caused the injury.

The moral injury caused in connection with an accident at work or occupational disease shall be compensated for by the party which caused the injury.

Section 9. Size of temporary disability benefit relating to an accident at work or occupational disease

The temporary disability benefit in connection with an accident at work and occupational disease shall be paid during the whole period of temporary disability of the insured person until his or her recuperation or until the permanent loss of occupational ability has been established, in the amount of 100 per cent of his or her average earnings calculated according to the legislation of the Russian Federation on temporary disability benefits.

Section 10. Lump sum insurance benefits and monthly insurance benefits

(1) Lump sum insurance benefits and monthly insurance benefits shall be established and paid:

-to the insured person if the medical/social expertise establishment determines that the loss of occupational ability resulted from an event insured against;

-to persons entitled to them if the event insured against resulted in death of the insured person.

(2) Lump sum benefits shall be paid to the insured person not later than one calendar month after the date when the said benefits are fixed, and in the event of death of the insured person: to persons entitled to them within two days after the insurant has submitted to the insurer all documents necessary for fixing such benefits.

(3) Monthly insurance benefits shall be paid to the insured person during the whole period of permanent loss of occupational ability and, in the event of death of the insured person, to persons entitled to such benefits during periods set out under Subsection 7(3) of this Act.

(4) All pensions, benefits and other similar income to which the insured person was entitled to both before and after the event insured against shall not reduce the amount of insurance benefits. Sums earned by the insured person after the event insured against shall not be subtracted from insurance benefits.

Section 11. Amount of lump sum insurance benefit

(1) The amount of lump sum insurance benefit shall be fixed according to the degree of loss of occupational ability and on the basis of 60 minimum wages established by a federal law on the date of this benefit payment.

In the event of death of the insured person the insurance benefit shall be fixed in an amount equal to 60 minimum wages established by federal law on the date of this benefit payment.

(2) In territories where regional coefficients or percentage increments to wages are in place, the amount of lump sum insurance benefit shall be fixed taking into account these coefficients and increments.

(3) The degree of loss of occupational ability shall be determined by a medical/social expertise establishment.

The procedure for determination of the degree of loss of occupational ability as a result of accidents at work and occupational diseases shall be established by the Government of the Russian Federation.

Section 12. Amount of monthly insurance benefit

(1) The amount of monthly insurance benefit shall be fixed as a proportion of the average monthly earnings of the insured person before the occurrence of the event insured against, calculated in accordance with the degree of loss of his or her occupational ability.

(2) When calculating earnings losses by the insured person as a result of the event insured against, all kinds of remuneration for work carried out at his or her main and additional place of work shall be taken into account. Not to be taken into account shall be one-time income, such as compensation for unused vacation or severance pay. Remuneration for work under civil/legal contracts and author's fees shall be taken into account only if insurance contributions have been paid to the insurer in respect of such earnings. Benefits for periods of temporary disability or maternity leave shall be taken into account when calculating insurance benefits.

All kinds of earnings shall be taken into account, calculated before deduction of taxes, duties and other obligatory payments.

In territories where regional coefficients or percentage increments to wages are in place, the amount of monthly insurance benefits shall be calculated taking into account these coefficients and increments.

(3) Average monthly earnings of the insured person shall be calculated by dividing his or her total earnings for 12 months of work, preceding the event insured against or loss of occupational ability, by 12.

If before the event insured against the insured person has worked less than 12 months, the average monthly earnings shall be calculated by dividing his or her total earnings for months actually worked, before the event insured against, by the number of such months. When calculating the average monthly earnings, months not fully worked may be substituted for, at the request of the insured person, by preceding months fully worked or shall be omitted, if such substitution is impossible.

If the event insured against has occurred as a result of an occupational disease contracted by the insured person, the average monthly earnings may be calculated, at the request of the insured person, for the last 12 months, preceding the work which caused the disease.

(4) The amount of average monthly earnings of an insured person under 18 years of age, when calculating insurance benefits, shall not be lower than five minimum wages set by the federal law plus the regional coefficient and percentage increment to wages in territories where these coefficients and percentage increments are in place.

(5) At the request of the insured person, if the event insured against occurs after the term of the employment contract expires, his or her earnings before the expiry date or usual remuneration of an employee of similar skills in the given territory shall be taken into account, but this shall be not less than five minimum wages as established by federal law plus the regional coefficient and percentage increment to wages in territories where these coefficients and percentage increments are in place.

(6) If before the event insured against the earnings of the insured person have undergone a change which has stabilised, and as a result he or she had higher earnings (wage increase in the present job, transfer to a higher position, recruitment after graduation from full-time studies and other cases when a stable change or possibility of raising the remuneration of the insured was confirmed), when calculating his or her average monthly earnings, only those sums shall be taken into account which he or her earned or should have earned after the corresponding change.

(7) If it is impossible to receive a confirmation of the amount of the insured person's earnings, the sum of monthly insurance benefit shall be calculated on the basis of the pay rate (salary) set in the sector (subsector) for the given occupation and similar working conditions at the moment of application for benefits.

After the corresponding document has been submitted, the amount of monthly insurance benefit shall be re-calculated.

(8) With regard to persons entitled to insurance benefits in the event of death of the insured person, the amount of monthly insurance benefits shall be calculated taking into account his or her average monthly earnings, pension, lifelong maintenance and similar income minus the income received by him or her or by able-bodied family members not entitled to insurance benefits. To determine the amount of monthly insurance benefit due to each person entitled to it the total amount of the said benefits shall be divided by the number of persons entitled to insurance benefits in the event of death of the insured person.

(9) In the event the insured person is placed in an old people's home or disabled person's home, he or she shall be paid the difference between the fixed monthly insurance benefit and upkeep in the said home, but not less than 25 per cent of the fixed monthly insurance benefit.

To persons dependent on the insured person placed in a home for old people or disabled persons, monthly insurance benefits shall be paid in the following manner: to one dependent incapable of work: one quarter; to two dependents: one third; to three and more dependents: half the fixed sum of the monthly insurance benefit. The remaining part of the monthly insurance benefit minus costs for maintenance in the home for old people and disabled persons, but not less than 25 per cent of the fixed monthly insurance benefit, shall be paid to the insured person himself or herself.

(10) With regard to the increase in the cost of living, earnings serving as a base for monthly insurance benefit calculation shall be increased in a manner established by the Government of the Russian Federation.

(11) In the event the minimum wage for work has increased in a centralized manner, monthly insurance benefits shall be increased in proportion to the increase in the minimum wage.

Section 13. Examination and re-examination of the insured person by a medical/social expertise establishment

(1) Examination of the insured person by a medical/social expertise establishment shall be carried out on the application of the insurer, insurant or insured person, as well as on the basis of a court ruling after a report on an accident at work or a report on occupational disease has been submitted.

(2) Re-examination of the insured person by a medical/social expertise establishment shall be carried out after a period set by such an establishment. Re-examination of the insured person may be carried out ahead of the set term, at the request of the insured person or on application of the insurer or insurant. If the insured person disagrees with the opinion of the medical/social expertise establishment, the insured person may appeal to the court.

Evasion, without valid reasons, by the insured person of re-examination as prescribed by the medical/social expertise establishment entails the loss of entitlement to provision under insurance until he or she has undergone the said re-examination.

Section 14. Taking into account the guilt of the insured while determining the amount of monthly insurance benefits

(1) If in the course of investigation of the event insured against, the commission investigating the event has established that gross negligence on the part of the insured person had contributed to the occurrence or aggravation of injury to his or her health, the amount of monthly insurance benefits shall be reduced in proportion to the degree of the insured person's guilt, but not by more than 25 per cent. The degree of guilt on the part of the insured person shall be established, in terms of a percentage, by the commission investigating the event insured against and shall be indicated in the report on the accident at work or occupational disease.

When establishing the degree of guilt of the insured person, the opinion of the trade union committee or other body empowered by the insured person shall be taken into consideration.

The amount of monthly insurance benefits provided for by this Federal Act shall not be reduced in the event of death of the insured person.

If an event insured against has occured and it is confirmed in a prescribed manner, refusal to compensate for the resulting injury shall not be permitted.

(2) There shall be no compensation for injury suffered as a result of deliberate intent on the part of the insured person, when the existence of such deliberate intent has been confirmed by law-enforcement bodies.

Section 15. Establishing and paying for insurance provision

(1) Temporary disability benefits in connection with accidents at work or occupational diseases shall be established and paid in a manner established by legislation of the Russian Federation on the establishment and payment of temporary disability benefits under state social insurance.

(2) The date of application for insurance provision shall be considered the day on which the insured person, or the person empowered by him or her, or the person entitled to insurance benefits, has submitted to the insurer a written request for provision under insurance. If the request has been sent by post, the date of application for insurance provision shall be considered the day upon which the request was mailed.

The insured person, or the person empowered by him or her, or the person entitled to insurance benefits, may apply to the insurer with the request for insurance provision regardless of how long ago the event insured against occurred.

(3) Monthly insurance benefits shall be established and paid to the insured person for the whole period of loss of occupational ability beginning from the day on which the medical/social expertise establishment determined that there was a loss of occupational ability, excluding any period during which the insured person was paid the temporary disablement benefit under Subsection (1) above.

The lump sum insurance benefit and monthly insurance benefits shall be paid to persons, who are entitled to them as a result of the death of the insured person, as of the day of his or her death but not before the right to insurance benefits is established.

Requests to establish and pay insurance provision, submitted three years after the right to such benefits arose, shall be met for a period not exceeding three years after application for insurance provision.

(4) Insurance provision shall be established by the insurer on the ground of a corresponding application by the insured person, or person empowered by him or her, or person entitled to insurance benefits, with the following documents (or their attested copies) attached by the insurant:

-report on the accident at work or occupational disease;

-reference to the average monthly earnings of the insured person;

-determination by the medical/social expertise establishment of the degree of loss of occupational ability by the insured person;

-determination by the medical/social expertise establishment on the kinds of social, medical and occupational rehabilitation needed by the insured person;

-civil/legal contract providing for insurance contribution payments in respect of the insured person;

-death certificate of the insured person;

-statement by a housing authority or, in its absence, a local self-government body on the composition of the family of the insured person ;

-statement regarding disabled family members of the deceased insured person;

-statement regarding family members dependent on the deceased insured person;

-statement certifying that one of the parents, spouse or other family member of the deceased insured person does not work and cares for the latter's children, grandchildren, brothers and sisters under 14 years of age or, even if they have attained the age of 14, a statement that there is need on health grounds for constant care, on the basis of a statement by a medical institution;

-statement of an educational institution that the family member of the deceased insured person, who is entitled to insurance benefits, is a full-time student;

-documents certifying expenses for social, medical and occupational rehabilitation, based on a statement by a medical/social expertise establishment, as provided for in subparagraph (iii) of Subsection 1 of Section 8 of this Federal Act.

The list of documents or their attested copies necessary for granting insurance provision shall be determined by the insurer for each event insured against.

The decision to grant or refuse to grant insurance benefits shall be made by the insurer within ten days (in case of death of the deceased - within two days) from the day the application for insurance provision and all necessary documents or their attested copies has been received.

A delay in making a decision to grant or refuse to grant insurance benefits within the prescribed term shall be considered as a refusal to grant insurance benefits.

The application for provision under insurance and documents or their attested copies which serve as the basis for granting insurance provision shall be retained by the insurer.

(5) Dependency on the deceased insured person by persons entitled to insurance benefits, in the absence or impossibility of restoring documents necessary for granting insurance benefits, as well as in cases when the interested persons disagrees with the content of such documents, shall be established by the court.

(6) In the event of death of the insured person, the lump sum insurance benefit shall be paid in equal parts to his or her spouse and other persons, listed in Subsection 2 of Section 7 of this Act, which have been entitled to the lump sum insurance benefit on the day of his or her death.

(8) Insurance benefits shall be paid to the insured person, who is in an employment relationship with the insurant, by the insurant himself at the expense of insurance contributions due to the insurer. Monthly insurance benefits shall be paid by the insurant on days fixed for wage payments.

Insurance benefits shall be paid to persons, not in an employment relationship with the insurant, by the insurer. Monthly insurance benefits shall be paid by the insurer not later than before expiry of the month for which the benefits are due.

Lump sum insurance benefits shall be paid within the period set out in Subsection 2 of Section 10 of this Federal Act.

(9) In the event of delay in payment, the insurance actor who should have made such payment is liable to pay the insured person and persons entitled to insurance benefits a fine in the amount of 0.5 per cent of the due sum of insurance benefits for each day of delay.

The amount of any fine resulting from delay in payment by the insurant shall not be taken into consideration when setting accounts with the insurer.

(10) In the event of delay of monthly insurance benefits by the insurant for more than one calendar month, these payments, at the request of the insured person or persons entitled to such payments, shall be made by the insurer, with expenses covered by the insurer to be borne by the insurant, who shall also be subject to a fine in accordance with the legislation of the Russian Federation.

CHAPTER III. RIGHTS AND OBLIGATIONS OF SOCIAL INSURANCE ACTORS

Section 16. Rights and obligations of the insured person

(1) The insured person has the right to:

(i) insurance provision in a manner and on terms laid down in this Federal Act;

(2) The insured person shall be obliged to:

Section 17. Rights and obligations of the insurant

(1) The insurant has the right to:

(2) The insurant shall be obliged to:

Section 18. Rights and obligations of the insurer

(1) The insurer has the right to:

(2) The insurer shall be obliged to:

Section 19. Responsibility of insurance actors

(1) The insurant shall be responsible for non-fulfilment of his or her obligations, provided for by this Federal Act, to undergo registration or re-registration, effect timely and full payment of insurance contributions, as well as timely and full payment of insurance benefits to the insured person as established by the insurer.

In the event of delay in contribution payment, the insurant shall pay the insurer a fine in the amount of 0.5 per cent of the insurance contribution amount due for each day of delay after expiry of the period for which insurance contributions should have been paid.

If the insurant conceals or understates the amount of remuneration for work with regard to all kinds of income of the insured person, the insurance contribution amount on all concealed or understated income shall be paid by the insurant together with a fine as referred to above. In addition, the insurant shall be fined by the insurer in an amount equal to the concealed or understated income of the insured person.

In the event an insurant who is employing persons covered by compulsory social insurance against accidents at work and occupational diseases, evades registration or re-registration with the insurer, insurance contributions shall be paid by the insurant for the whole period of evasion plus a fine in the amount of 0.5 per cent of the insurance contribution amount for each day of delay after expiry of the period for which insurance contributions should have been paid.

Insurance contribution arrears plus a fine shall be demanded and obtained by the insurer from an insurant who is a juridical person, in which case such a demand shall not be contested, and from an insurant who is a physical person through a court decision.

An amount of insurance benefits granted and paid by the insurant without the insurer's consent shall not reduce the amount of insurance contributions due.

The insurant shall be responsible for the validity of submitted information needed by the insured person to be granted insurance provision.. In the event that the insurant submits incorrect information, excessive expenses for insurance provision shall not reduce the amount of insurance contributions due.

The insurant and his or her officials, guilty of concealing events that have been insured against, shall be responsible as set out in the legislation of the Russian Federation.

(2) The insurer is responsible for the implementation of compulsory social insurance against accidents at work and occupational diseases, for granting insurance provision correctly and in a timely manner to insured persons and persons entitled to insurance benefits in accordance with this Act.

(3) The insured person and persons entitled to insurance benefits shall be responsible, in accordance with the legislation of the Russian Federation, for correct and timely submission of information when circumstances arise that entail changes in insurance provison, including a change in the amount of insurance benefits or cessation of such benefits.

In the event of concealment or inaccuracy of information needed to substantiate the right to insurance provision, the insured person and persons entitled to insurance benefits who submitted such information shall be liable to compensate for excessive expenses borne by the insurer - voluntarily or through a court decision.

CHAPTER IV. RESOURCES FOR THE IMPLEMENTATION OF COMPULSORY SOCIAL INSURANCE AGAINST ACCIDENTS AT WORK AND OCCUPATIONAL DISEASES

Section 20. Obtention of resources for the implementation of compulsory social insurance against accidents at work and occupational diseases

(1) Resources for the implementation of compulsory social insurance against accidents at work and occupational diseases shall be obtained through:

(2) Resources for the implementation of compulsory social insurance against accidents at work and occupational diseases shall be reflected as separate items on both sides of the budget of the Social Insurance Fund of the Russian Federation approved by a federal law. These resources are federal property and shall not be demanded and obtained.

Section 21. Insurance rates

Insurance rates, differentiated across groups of industries (subindustries) of the economy depending on the class of occupational risk, shall be established by a federal law.

A draft of such a federal law shall be introduced annually by the Government of the Russian Federation to the State Duma of the Federal Assembly of the Russian Federation.

Section 22. Insurance contributions

(1) Insurance contributions shall be paid by the insurant based on the insurance rate taking into account the reductions and increments established by the insurer.

The size of the said reduction or increments shall be established for the insurant taking into account the state of occupational safety and expenditures on insurance provision; it shall not exceed 40 per cent of the insurance rate established for the corresponding industry or subindustry of the economy.

The said reductions and increments shall be established by the insurer within the amount of insurance contributions in the corresponding section of the receipt side of the budget of the Russian Federation approved by a federal law.

(2) Insurance contributions, except for increments to insurance rates and fines, shall be paid irrespective of other contributions to social security and included in the cost of goods produced (work done, services rendered) or in the administration budget of the insurant.

Increments to insurance rates and fines provided for in Sections 15 and 19 of this Act shall be paid by the insurant from profits at its disposal or from the administration budget of the insurant and, in absence of profit, shall be included in the cost of goods produced, work accomplished or services rendered.

(3) Rules for differentiating industries (subindustries) according to classes of occupational hazard; rules for establishing reductions of and increments to insurance rates for different insurants; and rules for accumulating and spending resources for the implementation of compulsory social insurance against accidents at work and occupational diseases shall be approved by the Government of the Russian Federation.

Section 23. Resources for the implementation of compulsory social insurance against accidents at work and occupational diseases in the event of reorganization or liquidation of an insurant that is a juridical person

(1) In the event of reorganization of an insurant that is a juridical person, its obligations under this Act, including those related to insurance contribution payment, shall be transfered to its legal successor.

(2) In the event of liquidation, an insurant that is a juridical person shall transfer to the insurer capitalized payments in the manner established by the Government of the Russian Federation.

The liquidation commission may include a representative of the insurer.

Section 24. Records and statements related to compulsory social insurance against accidents at work and occupational illnesses

(1) The insurants, in the manner prescribed, shall keep records of industrial injuries and occupational diseases suffered by the insured persons, as well as of insurance provision with regard to them, and shall submit quarterly state statistical and financial statements.

(2) Quarterly state statistical statements on industrial injuries, occupational diseases and expenses related to them shall be submitted in the manner established by the Government of the Russian Federation.

(3) The insurant and its officials shall be liable for not submitting statistical and financial statements, or for submitting incorrect ones, in accordance with the legislation of the Russian Federation.

Section 25. Records and statements of the insurer

Resources assigned for the implementation of compulsory social insurance against accidents at work and occupational diseases, in accordance with this Act, shall be transfered to a single centralized account of the insurer maintained in institutions of the Central Bank of the Russian Federation, and shall be spent for the purposes of this kind of social insurance.

Operations with the insurer's single centralized account shall be effected according to rules established by the Central Bank of the Russian Federation. Credit organizations shall accept social contributions made by insurants without charging any commission for these operations.

Section 26. Control over implementation of compulsory social insurance against accidents at work and occupational diseases

(1) State monitoring of respect for the rights of insurance actors and fulfilment by them of their obligations shall be carried out in the manner set out in legislation of the Russian Federation.

State control over financial and business activity of the insurer and over implementation of compulsory social insurance against accidents at work and occupational diseases shall be carried out by the Chamber of Accountancy of the Russian Federation, and as regards the use of the federal budget appropriations, also by the federal executive body in charge of finances.

(2) At least once a year, the insurer shall arrange for an audit of its financial and business activity by a specialized audit organization with the corresponding license.

(3) Public monitoring of respect for lawful rights and interests of insured persons in accordance with this Act shall be carried out by trade unions or other representative bodies empowered by insured persons.

CHAPTER V. CONCLUDING AND TRANSITIONAL PROVISIONS

Section 27. Entry into force of this Act

(1) This Act shall come into force simultaneously with the entry into force of the federal law which establishes insurance rates necessary to finance resources for the implementation of compulsory social insurance against accidents at work and occupational diseases.

(2) From the date of official publication of this Act, the insurer shall effect preliminary registration of insurants; insurants and insurance organizations shall submit to the insurer, in a manner established by the insurer, information about persons entitled to insurance provision, and other preparatory work shall be carried out with the aim of implementing compulsory social insurance against accidents at work and occupational diseases in accordance with this Act.

Section 28. Transitional provisions

(1) Persons who sustained, prior to the entry into force of this Act, an injury, occupational disease or other health impairment as a result of performing the duties of their job which has been confirmed in a prescribed manner, as well as persons entitled to compensation for injury incurred as a result of the death of their bread-winner, shall receive insurance provision from the insurer on terms set out in this Act irrespective of when they suffered an injury, occupational disease or other health impairment.

Insurance provision established for the said persons after the entry into force of this Act shall not be less than the provision they enjoyed earlier in accordance with the legislation of the Russian Federation on compensation for injury sustained as a result of an accident at work, occupational disease or other health impairment incurred when performing their duties at work.

Expert examination of occupational ability in medical/social expertise establishments of persons who suffered an injury, occupational disease or other health impairment incurred when performing their duties at work prior to the entry into force of this Act shall be carried out within the time periods established before this Act came into force. On an application of the insured person, expert examination of occupational ability may be effected earlier than previously fixed.

(2) Registration of insurants by the insurer shall be carried out within ten days after this Act comes into force.

(3) The insurer shall not be liable to cover payment arrears resulting from non-fulfilment by employers or insurance organizations of their obligations to compensate for injury to employees as a consequence of injuries, occupational diseases or other health impairment incurred when performing their duties at work, nor shall the insurer be liable to pay a fine for such delays if they occurred before this Act comes into force. Employers and insurance organizations shall remain liable to cover such arrears and a fine in the amount of 1 per cent of the delayed compensation amount for each day of delay before the date on which this Act came into force. After the said date, a fine for delayed payment shall be in the amount of 0.5 per cent of the unpaid compensation amount for each day of delay.

(4) Contribution payments capitalized because of liquidation of juridical persons liable to compensate for injury incurred as a result of an accident at work, occupational disease or other health impairment incurred as a result of performing duties at work, and transfered to insurance organizations before this Act comes into force, shall be transfered to the insurer within one month after this Act comes into force in an amount equal to the remainder of money on the date this Act comes into force. At the same time, the insurer shall receive the documents confirming the right of the victims (including persons entitled to compensation for injury as a result of their bread-winner's death) to be repaid.

(5) Persons listed under Subsection (1) of this Section shall be granted insurance provision in full, in accordance with this Act, even if capitalization has been effected in the event of liquidation of juridical persons liable to compensate for injury to victims of an accident at work, occupational disease or health impairment incurred when performing duties at work.

Section 29. Some legislative acts of the Russian Federation that lose effect

The following laws lose effect as of the day that this Act comes into force:

Decree of the Supreme Soviet of the Russian Federation of 24 December 1992 No. 4214-I "On approving rules for compensation by employers for harm caused to employees as a result of an injury, occupational disease or other health impairment relating to performance of the duties of one's job" (Gazette of the Congress of People's Deputies of the Russian Federation and the Supreme Soviet of the Russian Federation, 1993, No. 2, Section 71), except for the first and second paragraphs of Subsection 2;

Rules of compensation by employers for harm done to employees as a result of an injury, occupational disease or other health impairment relating to the performance of the duties of one's job (approved by the Decree of the Supreme Soviet of the Russian Federation of 24 December 1992 No. 4214-I, Gazette of the Congress of People's Deputies of the Russian Federation and the Supreme Soviet of the Russian Federation, 1993, No. 2, Section 71);

Section 1 of the Federal Act "On introducing amendments and supplements to legislative acts of the Russian Federation on compensation by employers for harm done to employees as a result of an injury, occupational disease or other health impairment in connection with the performance of the duties of their job" (Collection of Legislation of the Russian Federation, 1995, No. 48, Section 4562).

Section 30. On introducing amendments and supplements into some legislative acts of the Russian Federation

(1) To introduce to the Labour Code of the Russian Federation (Gazette of the Supreme Soviet of RSFSR, 1971, No. 50, Section 1007; 1973, No. 39, Section 825; 1980, No. 34, Section 1063; Gazette of the Congress of People's Deputies of the Russian Federation and Supreme Soviet of the Russian Federation, 1992, No. 41, Section 2254; Collection of Legislation of the Russian Federation, 1995, No. 35, Section 3504) the following amendments and supplements:

Section 159 shall read as follows:

"Section 159. On compensation for harm done to employees as a result of impairment of their health

Harm done to employees as a result of accidents at work or occupational diseases shall be compensated for in accordance with the legislation of the Russian Federation.";

The Code shall be supplemented by the following Section 240:

"Section 240. Provision under compulsory social insurance against accidents at work and occupational diseases

Provision under compulsory social insurance against accidents at work and occupational diseases shall be effected in accordance with the Act "On compulsory social insurance against accidents at work and occupational diseases."

(2) Section 19 of the Basic legislation of the Russian Federation on safety at work (Gazette of the Congress of People's Deputies of the Russian Federation and Supreme Soviet of the Russian Federation, 1993, No. 35, Section 1412) shall read as follows:

"Section 19. Liability for injury to the life and health of employees as a result of performance of the duties of their job

Compensation for injury to employees as a result of accidents at work or occupational diseases suffered during performance of the duties of their job is regulated by the Federal Act "On compulsory social insurance against accidents at work and occupational diseases", other laws and normative legal acts of the Russian Federation."

(3) The following amendments and supplements shall be introduced to the Federal Act "On social protection of disabled persons in the Russian Federation" (Collection of Legislation of the Russian Federation, 1995, No. 48, Section 4563):

-in the fifth part of Section 12 the words "Pension Fund of the Russian Federation" shall be changed to read "Pension Fund of the Russian Federation, Social Insurance Fund of the Russian Federation";

-the fourth part of Section 22 shall read as follows:

"Special jobs for persons who have become disabled persons as a result of accidents at work or occupational diseases shall be created at the expense of employers who have caused injury.";

-the third part of Section 24 after the words "to the State Employment Fund" shall be added "and the Social Insurance Fund of the Russian Federation";

-the fourth part of Section 29 shall read as follows:

"Expenses for sanatorium and resort treatment, including paid leave for the whole period of treatment, and travel expenses of the disabled person and accompanying person to and from the place of treatment, as well as expenses for their lodging and nourishment incurred by disabled persons as a result of accidents at work or occupational diseases, shall be compensated for at the expense of resources of compulsory social insurance against accidents at work and occupational diseases.".

(4) To introduce to the Criminal Code of the Russian Federation (Collection of Legislation of the Russian Federation, 1997, No. 2, Section 198) the following supplement:

-the fourth part of Section 44 shall be supplemented with the words "and monthly insurance benefits under compulsory social insurance against accidents at work and occupational diseases".

Section 31. Bringing the standard-setting legal acts into conformity with this Act

To recommend that the President of the Russian Federation and instruct the Government of the Russian Federation to bring their normative legal acts into conformity with this Act.

To instruct the Government of the Russian Federation to adopt standard-setting legal acts necessary for the implementation of provisions of this Act.



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