Part 3 of our series on Japanese insurance
We got familiar with Employment Insurance in part 2. Now it is time to learn about Workers’ Compensation Insurance, because this insurance will help you when you get injured or sick while you work.
- Your employer needs to have you registered for Workers’ Compensation Insurance
- You do not pay for the insurance
- The insurance covers injuries, illness, and other incidents related to work
- When you get injured at work, apply for Workers’ Compensation Insurance, not Health Insurance
What is Workers’ Compensation Insurance?
Rousai hoken, or Workers’ Compensation Insurance provides benefits to workers who have been injured or disabled during the time they have been working or commuting to their job. If workers have died because of their jobs, their families receive the benefits.
The benefits are classified into the following seven categories:
- Medical compensation
- Compensation for suspension of business
- Compensation pension for the sick and wounded
- Compensation for disorder
- Compensation for bereaved families
- Funeral expenses
- Compensation for nursing care
When it comes to eligibility, it does not matter if you are working full-time, part-time, or through a haken company. Companies are required to have you enroll in Workers’ Compensation Insurance the first day of work.
Also, you do not need to pay the premium for the insurance because your employer is required to pay the whole premium. That can make it less clear if you are enrolled in the insurance or not. Make sure to check with your employer to see if they have you enrolled.
Health Insurance is not a replacement
Your employer might tell you to apply for Health Insurance, not Workers’ Compensation Insurance, to use incase you get injured during your job. However, this is wrong because it is Workers’ Compensation Insurance that covers injuries that have happened while you are working.
When you use Health Insurance, you might end up paying more than what you actually need, so keep in mind to use your Workers’ Compensation Insurance benefits if something happens while you are working. Also, the insurance covers injuries and deaths on your way to work and back.
Remember that it is the responsibility of the worker to apply. If they fail to do so, they will not be able to apply after a certain period has passed (two years or five years depending on the situation).
How to apply for Workers’ Compensation Insurance
There are different ways to apply for Workers’ Compensation Insurance. If you get injured or ill at work and go to a hospital, what you need to do is quite simple.
You need to submit an application form to the hospital and have them fill out the form. Then, submit it to the Labour Standards Inspection Office. After your application form is approved, the Ministry of Health, Labour and Welfare will pay you the amount of money that the hospital charged you.
Another example is when you take a medical leave due to injuries or illness caused at work. You would need to submit an application form that a hospital and your employer have approved to Labour Standards Inspection Office.
You will receive benefits from the Ministry of Health, Labour and Welfare from the fourth day of your leave. The amount of the benefit is 80 percent of your daily wage.
Workers’ Compensation Insurance protect workers
Workers’ Compensation Insurance was established to protect workers. Knowing what you are supposed to do when unexpected things happen at work will help you financially and give you peace of mind.