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Repetition Article 5 of the Convention. Proper utilization of lump sum compensation. The Committee notes that, in spite of longstanding comments, the national legislation continues to provide for the payment of a lump sum to the victims of occupational accidents entailing permanent incapacity to work without any monitoring as to how such compensation is utilized. In these circumstances, the Committee cannot but once again express the hope that the Government will soon take the necessary measures and bring the national legislation into conformity with this provision of the Convention which provides that a lump sum may only replace periodical payments if the competent authority is satisfied that it will be properly utilized.
Repetition 1. Article 5 of the Convention. Payment of compensation in the form of periodical payments. In reply to the Committee’s previous comments, the Government reiterates that in view of the very small number of potential beneficiaries and the administrative burden which would be created by a scheme of paying compensation in form of a pension, it does not consider changing the present system of compensation paid in a lump sum in the event of permanent disablement or death of workers. The Government also maintains its view that it is highly unlikely that the situation would arise whereby lump-sum compensation would not be properly utilized and indicates that, during the past two reporting periods, there have been no payments made under the workmen’s compensation legislation and only one common law damages payment made.While taking due note of this information, the Committee is bound to recall the principle according to which industrial accident compensation in the event of permanent incapacity or death shall be paid in the form of periodical payments; it may exceptionally be paid in a lump sum, if the competent authority is satisfied that the funds will be properly utilized. The Committee, consequently, expresses once again the hope that the Government will re-examine the matter so as to give effect to the Convention. In the meantime, the Committee would be grateful if the Government would continue to supply information on the number of cases and the form and amounts of compensation paid in case of industrial accidents and, where appropriate, the manner in which the competent authority ascertains the proper utilization of the compensation paid in a lump sum.2. The Government also indicates in its report that the Executive Council has considered a paper on the provisions of the Workmen’s Compensation Ordinance, enacted in 1960, recognizing that the “no fault” compensation payable to workers under the Ordinance is far less than the damages for injury which can be claimed at common law by a worker or damages for death which can be claimed under the Fatal Accidents Act by a worker’s dependants where negligence on the part of the employer can be established. Consequently, a working party should be set up comprised of representatives of the private sector and the Government to examine the compensation provisions of the Ordinance and report back with its recommendations.The Committee would be grateful if the Government would keep it informed of any new measures or decisions taken following the recommendations made by the above working party with respect to workers’ compensation in case of industrial accidents.
1. Article 5 of the Convention. Payment of compensation in the form of periodical payments. In reply to the Committee’s previous comments, the Government reiterates in its report that in view of the very small number of potential beneficiaries and the administrative burden which would be created by a scheme of paying compensation in form of a pension, it does not consider changing the present system of compensation paid in a lump sum in the event of permanent disablement or death of workers. The Government also maintains its view that it is highly unlikely that the situation would arise whereby lump-sum compensation would not be properly utilized and indicates that, during the past two reporting periods, there have been no payments made under the workmen’s compensation legislation and only one common law damages payment made.
While taking due note of this information, the Committee is bound to recall the principle according to which industrial accident compensation in the event of permanent incapacity or death shall be paid in the form of periodical payments; it may exceptionally be paid in a lump sum, if the competent authority is satisfied that the funds will be properly utilized. The Committee, consequently, expresses once again the hope that the Government will re‑examine the matter so as to give effect to the Convention. In the meantime, the Committee would be grateful if the Government would continue to supply information on the number of cases and the form and amounts of compensation paid in case of industrial accidents and, where appropriate, the manner in which the competent authority ascertains the proper utilization of the compensation paid in a lump sum.
2. The Government also indicates in its report that the Executive Council has considered a paper on the provisions of the Workmen’s Compensation Ordinance, enacted in 1960, recognizing that the “no fault” compensation payable to workers under the Ordinance is far less than the damages for injury which can be claimed at common law by a worker or damages for death which can be claimed under the Fatal Accidents Act by a worker’s dependants where negligence on the part of the employer can be established. Consequently, a working party should be set up comprised of representatives of the private sector and the Government to examine the compensation provisions of the Ordinance and report back with its recommendations.
The Committee would be grateful if the Government would keep it informed of any new measures or decisions taken following the recommendations made by the above working party with respect to workers’ compensation in case of industrial accidents.
Article 5 of the Convention. In reply to the Committee's earlier comments, the Government reiterates that the Executive Council of the Falkland Islands does not consider changing the present system of compensation paid in a lump sum in the event of permanent disablement or death of workers to be justified, on the one hand, because of the small number of potential beneficiaries and, on the other hand, of the administrative burden that such a change would imply. Moreover, given the sophistication of the local people with regard to the investment of money, it is highly unlikely that the competent authority would not be satisfied that the lump sum was properly utilized.
The Committee again notes this information. It hopes that the Government will be able to reconsider the question and that in a future revision of the legislation it will not fail to take the necessary measures so that, in conformity with this provision of the Convention, the compensation payable in the event of permanent incapacity or death, shall be paid in the form of periodical payments. The Committee requests the Government to continue to supply information on the number and nature of occupational accidents registered as well as the amount and the form of compensation granted and, where appropriate, the manner in which the competent authority ascertains the proper utilization of the compensation paid in a lump sum.
Article 5 of the Convention. In reply to the Committee's previous comments, the Government indicates that the question of the possibility of paying compensation to injured workers or their dependants in the form of a pension was carefully considered by the present Executive Council of the Falkland Islands, which decided that there should be no change in the present position. It considers that, in view of the very small number of potential beneficiaries and the administrative burden which would be created by such a scheme, there is no reason, in Falklands circumstances, to change from the present situation of paying lump-sum compensation in respect of permanent disablement or death of workers. In any event, given that the Convention permits compensation to be wholly paid in a lump sum if the competent authority is satisfied that it would be properly utilized, the Government is of the opinion that it is highly unlikely, given the sophistication of the local people with regard to the investment of money, that the situation would arise whereby the competent authority would not be satisfied that the lump-sum compensation would be properly utilized.
The Committee notes this information and, in particular, the administrative difficulties and the special local circumstances to which the Government has been referring for many years. It further notes that, according to the Government's report, during the period covered by it there were only two reported cases of injuries causing minor partial permanent disablement in respect of which a total of 66,422.53 has been paid. In view of the very small number of potential cases which might in the future require compensation under Article 5 of the Convention, the Committee once again expresses the hope that the Government will be able to take all necessary measures to ensure that, in all cases, compensation in the event of permanent injury or death is paid, as a rule, in the form of periodical payments and may be converted into a lump sum only where the competent authority is satisfied that the lump sum will be properly utilized, in conformity with this basic provision of the Convention. The Committee hopes that the Government will not fail to indicate in its next report any progress made in this respect and will continue to supply information on the number of cases and the form and amounts of compensation paid under the Convention.
Article 5 of the Convention. In reply to the Committee's previous comments, the Government indicates in its report that very careful consideration has been given to the possibility of paying compensation to injured workmen or their dependants in the form of a pension. However, given the very small number of potential beneficiaries, the administrative burden created by such a scheme would seem to outweigh any possible benefits. The Government will, of course, give advice in connection with the investment of any lump sums payable under the compensation scheme.
With regard to the position in the United Kingdom, the Government indicates that whereas under the legislation applicable in the Falkland Islands compensation is payable by the employer of the injured workman, in the United Kingdom payments are made out of a state-run fund. The Government does not have available to it the administrative resources that would be required to operate a similar scheme and fund in the Falkland Islands.
The Committee takes note of this information. Although it is aware of these difficulties, it trusts that the Government will reconsider the question and will do everything possible to ensure, as it stated previously, the full application of this basic provision of the Convention, which provides that compensation payable in the event of permanent injury or death shall be paid in the form of periodical payments, provided that it may be wholly or partially paid in a lump sum if the competent authority is satisfied that it will be properly utilised.