Professional Documents
Culture Documents
Accident Cost
Accident Cost
Insurance
MANAK CHAND
JODHPUR
[email protected]
What is an accident
• An accident or a mishap is an incidental and
unplanned event or circumstance, often with
lack of intention or necessity. It usually implies a
generally negative outcome which might have
been avoided or prevented
had circumstances leading up to the accident
been recognized, and acted upon, prior to its
occurrence.
What is an mining accident
• A mining accident is an accident that occurs during the
process of mining of minerals.
• Mining accidents can have a variety of causes,
including leaks of poisonous gases such as hydrogen
sulfide or explosive nature gases,
especially firedamp or methane, dust explosions,
collapsing of mine stopes, mining-induced seismicity,
flooding, or general mechanical errors from improperly
used or malfunctioning mining equipment (such
as safety lamps or electrical equipment).
• Use of improper explosives underground can also
cause methane and coal-dust explosions.
Mining Accident
Mount Mulligan mine disaster in Australia 1921, these cable drums were blown
50 feet (15 m) from their foundations following a coal dust explosion
What Are the Most Common Accidents Occurring
in the Mining Industry?
• 1. Methane and Consecutive Coal Dust Explosions
• 2. Blasting Related Accidents
-Fly-Rocks:
-Premature Blast:
-Misfires
-Mine-Induced Seismicity
• Mine Inundation
• Roof Fall/Side Fall
• Mechanical Failures
• Mine Transport Accidents
• Human Errors
Cost of Accidents
• How much an accident actually costs a
company?
• The cost of a workplace accident affects a
company’s bottom line.
• Accidents are more expensive than many of us
realize due to hidden costs.
Cost of Accidents
• Accidents are more expensive than most
people realize because of the hidden costs.
Some costs are obvious — for example,
Workers' Compensation claims which cover
medical costs and indemnity payments for an
injured or ill worker. These are the direct
costs of accidents.
• Visible costs such as medical expenses, costs
to replace equipment, fines and penalties are
easy to find and calculate, but it is not easy to
find information necessary to calculate the
hidden costs not directly associated with the
accident, such as the cost to train and
compensate a new employee, investigate the
accident or implement corrective action.
Direct and Indirect Accident
Costs
• A direct cost is a cost that can be easily and
conveniently traced to the accident such as
medical expenses and indemnity payments
while an indirect cost is a cost that cannot be
easily and conveniently traced to the
particular accident such as the salary of the
person investigating the accident.
• Direct costs of accidents
• Direct costs are those costs that are accrued
directly from the accident. They are quite easy
to calculate, and include the medical costs
incurred and the compensation payments
made to the injured workers. Direct costs are
usually insurable by businesses.
• Indirect costs
• Indirect costs are all the "uninsured" additional
costs associated with an accident. What is
important to realize is that indirect costs are
usually much greater than direct costs. Another
important point is that, unlike direct costs,
indirect costs are uninsured...they come right out
of the corporate pocketbook. These are the costs
that can drive a company into the red.
• Indirect costs are the less obvious
consequences of an accident that can be
costed. While the indirect costs created by
accidents are hidden, they too must be paid
from profits from the sale of products. They
are more difficult to calculate and tend not to
be insured.
The examples of indirect or uninsured costs:
• Lost production time.
• Productive time lost by an injured employee. Productive
time lost by employees and supervisors helping the
accident victim. Cleanup and startup of operations
interrupted by an accident.
• Time to hire or train a worker to replace the injured worker
until they return to work. Property damage.
• Time and cost for repair or replacement of damaged
equipment, materials or other property. Cost of continuing
all or part of the employee's wages, plus compensation.
• Reduced morale among your employees, and perhaps
lower efficiency. Cost of completing paperwork generated
by the accident.
• Govt. penalties.
• Other indirect costs include such factors as a
surcharge on the company’s insurance premium.
Other costs may include civil or criminal penalties
imposed by state or federal officials if the
accident is found to have resulted from flagrant
violation of workplace safety requirements.
• Studies have shown that such indirect costs
usually total three to four times the direct costs
of the accident and could amount to as much as
20 times the direct costs.
Indirect costs also include:
• Time away from the job not covered by workers'
compensation insurance;
• Payment of other workers who are not injured,
for example those who stopped work to look
after or help the injured worker and those who
require output from the injured in order to
complete their tasks;
• The cost of damage to materials or equipment
involved in the accident;
• The cost of overtime imposed by the accident
(lost production, additional supervision, and
additional heat, light, etc.);
• The cost of wages paid to the supervisor for time spent
on activities related to the accident. This includes
caring for the injured, investigating the accident and
supervising the activities necessary to resume the
operation of business. All of these activities will disrupt
the supervisor's productivity;
• Costs associated with instructing, training, and
repositioning employees in order to resume
production. In some cases, it might even be necessary
to hire a replacement with all the associated hiring
costs;
• Medical costs paid by the employer that are not
covered by the insurance. This may include treatment
facilities, personnel, equipment and supplies;
• Cost of managers and clerical personnel
investigating and processing claim forms and
related paperwork, telephone calls, interviews,
etc.
• Wage costs due to decreased productivity once
the injured employee returns to work. This is due
to restricted movement or
nervousness/cautiousness on the part of the
injured employee and time spent discussing the
accident with other employees etc.
• Costs brought about from any enforcement
action following the accident such as prosecution
fines and costs of imposed remedial works.
• A series of costly accidents can reduce profits radically.
Accidents have obvious, direct costs such as medical,
hospital and rehabilitation expenses, workers
compensation payments, and higher insurance
premiums or even loss of insurability.
• But, accidents have less obvious, indirect costs that are
usually uninsured. These include the various
disruptions to normal work procedures, such as when
employees stop to help the injured employee, or even
a drop in production that cause inconsistencies with
delivery. If profits are not sufficient to cover costs, the
company may be forced to defer the procurement of
new equipment and facilities.
• Studies show more accidents that occur in a
workplace, the higher the costs — both in increased
insurance premiums and greater indirect costs.
• Employers Liability
• Public Liability
Uninsured Costs
• Product and material damage
• Lost production time
• Legal costs
• Overtime & temporary labour
• Investigation time/Administration
• Supervisors time
• Fines
• Loss of expertise/experience
• Loss of morale
• Bad publicity
Accident Costs Iceberg
Insurance Costs
Uninsured Costs
What Can Be Done to Prevent Mining Accidents?
• 1. Training Is Key
Compulsory Training Programs for Miners
Prevention Through Simulation
Blasting License
Administration Classes on Health, Safety, and Mining
Methods
• 2. Safety Legislation
• 3. Technology Standard
Personal Protective Equipments
Exploitation Infrastructure
Explosive Products
Thank you