What is COIDA

What is COIDA

The Compensation for Occupational Injuries and Diseases Act (COIDA)Act No. 130 of 1993, is a South African law that provides a no-fault compensation system for employees who suffer work-related injuries or diseases. 

It is administered by the Department of Labour and licenced entities , COIDA ensures workers receive compensation for disabilities or death resulting from workplace accidents or occupational diseases, without needing to prove employer negligence.

In effect is covers  employers legal liabilities and protect their businesses but also the concerns of employees.

Case in point It protects employers from civil lawsuits for workplace incidents, except in cases of intentional harm or gross negligence. The Compensation Fund, funded by employer contributions, covers medical expenses, temporary or permanent disability benefits, and death benefits for dependants.

Key Features of COIDA

Its Purpose: Provides compensation for employees injured or contracting diseases during work, or for dependants in case of death.

Coverage: Applies to most employees in South Africa, including part-time and foreign workers, but excludes members of the South African National Defence Force, South African Police Services, independent contractors, and certain volunteers.

Benefits: Includes medical expenses (up to two years), temporary disability payments (75% of earnings for up to three months), permanent disability payments (lump sums for <30% disability, pensions for >30%), and funeral expenses.

Employer Responsibilities: Employers must register with the Compensation Fund within seven days of hiring their first employee, pay annual assessments based on payroll, and report workplace injuries within seven days or diseases within 14 days.

Claims Process: Employees report incidents to employers, who submit claims to the Compensation Commissioner with medical reports. Claims must be filed within three years of the incident (as per the 2022 amendment).

Exclusions: No compensation for injuries due to serious and wilful misconduct (unless resulting in serious disablement or death), refusal of medical treatment, or claims filed after the prescription period.

Amendments: The 2022 COIDA Amendment Act expanded coverage to domestic workers, introduced rehabilitation and psychosocial support, and extended the claim prescription period to three years. It also covers accidents during work-related transport and training.

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