Order on the Financing of Certain Compensation Paid by the Labour Market Work Injury Insurance under the Work Injury Insurance Act and the Act on Insurance against Consequences of Work Injury

Order on the Financing of Certain Compensation Paid by the Labour Market Work Injury Insurance under the Work Injury Insurance Act and the Act on Insurance against Consequences of Work Injury

Pursuant to Section 48, subsection 6, sentence 4, Section 51, Section 60, subsection 1, and Section 88 of the Work Injury Insurance Act, cf. Statutory Order No. 1186 of 19 August 2022, and upon the recommendation of the Board of the Labour Market Work Injury Insurance in cooperation with the Danish Financial Supervisory Authority and in cooperation with the Minister for Business Affairs, the following is enacted:

Section 1. The amounts paid by the Labour Market Work Injury Insurance pursuant to Section 48, subsection 6, and Section 52, subsection 1, of the Work Injury Insurance Act are financed for each calendar year according to the distribution rules in Section 2, subsections 2-4, between the liable parties, cf. subsection 2, and are remunerated according to the rules in Section 3, subsection 3. The same applies to the amounts paid by the Labour Market Work Injury Insurance pursuant to Section 5, subsection 6, Section 53B, and Section 74 of the Act on Insurance against Consequences of Work Injury. When this Order refers to Section 48, subsection 6, and Section 52, subsection 1, of the Work Injury Insurance Act, the reference applies correspondingly to Section 5, subsection 6, Section 53B, and Section 74 of the Act on Insurance against Consequences of Work Injury.

Subsection 2. Insurance companies conducting work accident insurance, agencies, and others administering policies on behalf of an insurance company, as well as private self-insured employers pursuant to Section 88, sentence 2, of the Work Injury Insurance Act and Section 74, sentence 2, of the Act on Insurance against Consequences of Work Injury, are considered liable parties under this Order.

Section 2. The total amount paid is calculated as the sum of the actual expenses for benefits under the Work Injury Insurance Act regarding work accidents, including compensation for permanent injury, the share of education compensation covered by Section 18 e, subsection 3, of the Work Injury Insurance Act, and compensation for loss of earning capacity, which the Labour Market Work Injury Insurance has paid pursuant to Section 1, subsection 1, in the preceding calendar year. In calculating the total amount paid, expenses arising from those not subject to insurance under Section 48, subsection 5, of the Work Injury Insurance Act are disregarded.

Subsection 2. The liable parties pay an annual advance payment, cf. Section 3. The liable party's share of the advance payment is determined by the Labour Market Work Injury Insurance based on a realistic estimate of the individual liable party's expected share of the total expenses under the Work Injury Insurance Act regarding work accidents, including compensation for injury, the share of education compensation covered by Section 18 e, subsection 3, of the Work Injury Insurance Act, and compensation for loss of earning capacity in the expense year, including provisions for covering future ongoing compensation for loss of earning capacity.

Subsection 3. The liable party's share of the actual expenses is determined in proportion to the liable party's share of the total expenses under the Work Injury Insurance Act regarding work accidents in the expense year for compensation for injury, the share of education compensation covered by Section 18 e, subsection 3, of the Work Injury Insurance Act, and compensation for loss of earning capacity, including provisions for covering future ongoing compensation for loss of earning capacity, which the Labour Market Work Injury Insurance has awarded in the expense year.

Subsection 4. In calculating the total expenses according to subsections 2 and 3, expenses under Section 48, subsection 6, and Section 52, subsection 1, of the Work Injury Insurance Act are disregarded.

Section 3. The Labour Market Work Injury Insurance collects an advance payment from all liable parties, cf. Section 1, subsection 2, no later than in May of each year.

Subsection 2. Simultaneously with the advance collection according to subsection 1, the Labour Market Work Injury Insurance adjusts the difference from the previous year in relation to the paid advance payment based on the actual expenses and the liable party's actual share in the expense year. The Labour Market Work Injury Insurance may, through this adjustment, collect amounts, cf. Section 1, corresponding to the actual expense share, cf. sentence 1, from liable parties who have begun conducting work accident insurance in the expense year.

Subsection 3. The Labour Market Work Injury Insurance is obliged to seek the best possible remuneration for the paid advance payments, taking into account the ongoing need for liquidity. Documented interest income received by the Labour Market Work Injury Insurance from the remuneration of the received advance payments must be included in the annual adjustment, cf. subsection 2. The same applies to documented interest expenses incurred by the Labour Market Work Injury Insurance as a result of any difference between the collected advance payments and the actual expenses.

Subsection 4. Notification of the total advance payment and adjustment, including any net interest amount, as well as the individual liable party's share thereof, is sent out before the end of May. Payment must be made within 14 days after the date of the notification. The notification to the individual liable party must contain a specification of the new advance payment and a specification of the composition of the adjustment consisting of previously received advance payments, actual compensation expenses, and actual interest income and interest expenses. The specification is attached with the liable party's payment key, cf. Section 2, subsections 2-4, and Section 3, subsection 2.

Section 4. This Order enters into force on 1 July 2024.

Subsection 2. Statutory Order No. 645 of 28 June 2019 on the financing of certain compensation paid by the Labour Market Work Injury Insurance under the Work Injury Insurance Act and the Act on Insurance against Consequences of Work Injury is repealed.

Subsection 3. Statutory Order No. 413 of 24 April 2017 on the distribution and remuneration of amounts advanced by the Labour Market Work Injury Insurance under the Work Injury Insurance Act and the Act on Insurance against Consequences of Work Injury continues to apply in the distribution and remuneration of amounts pursuant to Section 52, subsection 6, of the Work Injury Insurance Act in Greenland.

Ministry of Employment, 22 May 2024 Ane Halsboe-Jørgensen / Sine Frederiksen

22 May 2024. No. 494. Published 24 May 2024 Ministry of Employment, Danish Working Environment Authority, file no. 20225000929 BE009906