Chilean Law 16.744: Occupational Accident Insurance
What is an Occupational Accident?
An undesired event caused by an energy exchange exceeding the body’s or structure’s capacity, potentially leading to disability or death.
Law 16.744 (1968)
This law establishes compulsory and universal social insurance for occupational accidents and diseases.
Accident Rate
Calculated semi-annually: (Number of accidents * 100) / Number of employees.
Law 16.744 Features
- Universal (Universalidad): Mandatory for all affiliated workers.
- Due Process Rights (Derecho): Entitles individuals to all necessary benefits.
- Solidarity (Solidaridad): Credit risk distinguishes percentage contributions, divided equally.
- Comprehensive (Integralidad): Covers all economic, curative, and rehabilitative needs arising from occupational accidents or diseases.
- Subsidiary (Subsidiaridad): This right is secured by the state.
- Positive (Positividad): Encourages actions to reduce occupational risks.
Law Objectives
- Medical Rehabilitation: Free examinations, operations, medication, and hospitalization.
- Economic Benefits: Subsidies, pensions, and compensation.
- Work Reintegration: Reinstate workers after accidents.
Law Administration
- Public: INP (National Institute of Occupational Safety)
- Private (Open): ACHS, IST, C.CH.C.
- Private (Closed): Codelco, Huachipato, Asmar.
Funding
Monthly payments to the fund. Companies pay a total tax based on taxable income, plus a fixed contribution base of 0.95% and an additional variable contribution (0-6.8%) based on days lost due to disability or death (calculated every two years in July). Total contribution can reach up to 7.75%.
Definitions
- Pension: Monthly salary payment until retirement.
- Allowance: Daily salary payment.
- Indemnity: Single lump-sum payment.
Risk and Danger
Risk: Probability of an event occurring.
Danger: Situation that can cause harm.
Companies with over 25 employees must have a Joint Committee (6 members: 3 permanent, 3 substitutes). Companies with over 100 employees must have a Security Department.
Disability: Temporary (subsidy), Permanent (under 40%: allowance, over 40%: pension).
Protected Persons
- Employees
- Public officials
- Students
- Self-employed individuals
Occupational Injury
Any work-related injury causing incapacity or death.
Commuting Accident
An accident occurring on the direct route between home and work, causing disability or death.
Occupational Disease
A disease directly caused by work, leading to disability or death.
Prevention
Activities planned and implemented to reduce work-related risks.
Prevention Objectives
- Prevent occupational hazards.
- Assess unavoidable risks.
- Combat risks at the source.
- Replace dangerous elements with safe alternatives.
- Plan preventive activities.
Incident
An undesired event that could have resulted in injury or property damage under different circumstances.
Accident Causality Model
Inadequate Control & Basic Causes:
- Lack of knowledge (imitation, inexperience)
- Inability (permanent or temporary disability)
- Unwillingness (incorrect risk assessment, frustration, aggression, resistance to change)
- Unsafe conditions (inadequate standards, equipment wear, defective design, abnormal use)
Immediate Causes: Substandard acts and conditions.
Event or Accident: Impact on person or property.