General
What is the RMI Worker’s Compensation (WC) Law?
An act to provide compensation to employees or qualified dependents for injury, disability or death that arises out of and in the course of their employment. Its mission is to ensure prompt and accurate benefit payments and appropriate timely treatment to injured employees in order to facilitate their return to gainful employment and recovery from their injuries/illness.
When is the implementation date of the WC Law?
The WC Law will take effect on October 1, 2023.
Which government agency oversees WC Claims?
All private and public sector worker’s compensation claims are overseen by the Claims Department of the Marshall Islands Social Security Administration (MISSA), a.k.a. Marshall Islands Workers’ Compensation Administration, the agency appointed by the Cabinet to administer the workers’ compensation program of the Marshall Islands.
Exemptions
Who may be exempted from the WC Law?
The following employers, self-employed workers and individuals are exempted from the WC law:
- A Marshallese worker who is contracted to work on the USA Army Garrison – Kwajalein Atoll (USAG-KA), or on any operations of the USAG-KA, and covered under the Defence Base Act (DBA) of the United States;
- A non-resident consultant who is working in or on behalf of the RMI;
- A non-resident or Marshallese worker whose project or job assignment is carried outside of the Marshall Islands other than RMI Government workers who are working for the Marshall Islands Embassies, Consulates, and other Government Offices establishes outside of the Marshall Islands, who are not already covered, including constructions workers who are employed by local companies, and are temporarily assigned to complete a project or contract outside of the Marshall Islands;
- Non-resident members of foreign or international diplomatic Corps who are assigned to work in the Marshall Islands, excluding Marshallese employees;
- Non-Resident employees of regional or international organizations;
- Self-employed workers, regardless of nationality, who opted not to be covered by WC law and who have submitted a valid exemption to the Administrator;
- Local students under practicum training and interns;
- Non-Resident or local volunteers, or church missionaries;
Workers’ Compensation Insurance
If I have employees, do I need worker’s compensation insurance?
Every non-government employer is required to secure worker’s compensation coverage for all their employees through an authorized Insurance Carrier, unless approved by the Administrator as a self-injured or exempted employer. Government workers shall be covered by the RMI Government Self-insurance Fund. A contractor may be liable for and shall secure payment of such compensation to employees of any subcontractor, unless the subcontractor has secured such payment.
What if I am a small business – Do I have to purchase Workers’ Compensation Insurance?
Small family-owned shops or businesses with annual gross income of not more than $25,000 can seek exemption from purchasing insurance. (The owners of these small businesses must submit to MISSA an application for exemption [use form WCA-105] together with their Annual GRT Returns filed with the Revenue & Taxation Office in the last 2 years). You are still responsible for meeting the costs of any claims by your employees if they are injured in your business.
How do I know if my employer has workers’ compensation insurance?
Every employer who has secured worker’s compensation coverage shall keep posted in an obvious and easily accessible place in his/her business, the printed CERTIFICATE OF INSURANCE issued by the Insurance Carrier showing that such employer has secured coverage and complied with their legal obligations.
Who will pay for the WC insurance premium?
Payment of 100% of the premium is the responsibility of the employer.
When does worker’s compensation coverage begin?
Worker’s compensation coverage begins the first day of your employment, even if you are part-time or temporarily (casually) employed.
Who does an employer have to purchase insurance from?
Employers may choose to contact either Moylan’s or Marshalls Insurance Agency for quotations and coverages, as both insurance carriers have agents in the RMI and are committed to the workers’ compensation scheme.
However, an employer can purchase workers’ compensation insurance from any insurance carrier as long as they provide coverage consistent with RMI Workers’ Compensation law.
Can a worker waive his/her right to worker’s compensation coverage?
No this would be unlawful and in breach of section 716 of the Worker’s Compensation Act.
Injuries & Illnesses
What work-related injury or illness covered under WC?
All injuries and illnesses sustained at the workplace shall be presumed to be work-related and covered by worker’s compensation, subject to certain exceptions provided by the law.
What injuries or illnesses are covered?
A work-related injury, illness or death is an accidental injury or death arising out of and or in the course of employment. An injury can include an occupational disease or infection that arises out of your employment or unavoidably results from an accidental injury. Work-related injuries may include an injury caused by the willful act of a third person directed against an employee because of his employment.
Employer: How do I report a work-related injury or illness?
MISSA has made available a WC reporting form (WCA-101) which contains instructions in detail on how to report a work injury or related illness. Upon knowledge of a work injury or illness, complete Form WCA 101 and submit this along with all the employee’s documents to the MISSA as soon as possible from the date of injury/illness or within ten (10) calendar days being informed by MISSA. If medical treatment is required, send the injured employee to a medical provider as soon as possible. If the injury or illness is serious you may also need to inform the employee’s family.
Reports and all other documents submitted by the employee must also be sent to your insurer and MISSA.
What if I have a pre-existing condition or injury?
A work-related aggravation of a pre-existing condition is compensable only while the aggravation is the cause of the disability. Once the ‘new’ aggravation resolves and you return to your pre-injury condition, coverage ceases.
What do workers do if emergency medical care is required?
If a worker sustains a serious or life-threatening injury, call an Ambulance. For minor injuries, after seeking First Aid, the worker should go to the Hospital emergency room. Authorization can be hand-carried by the injured worker or forwarded to the hospital at a later time. Upon discharge from the hospital, the worker must provide all paperwork to MISSA and their employer, and obtain prior authorization should he/she require further medical treatment.
Are diseases covered too?
To be covered, there must be a connection or direct relationship between your employment and the disease.
What benefits are available if injured and claiming worker’s compensation?
There are three (3) benefits under WC:
- MEDICAL TREATMENT is provided to the worker for as long as the injury may require. Unauthorized treatment or unrelated treatment can be denied. Coverage includes doctor’s visits, hospitalization, rehabilitation, counselling, diagnostic tests, medicines, medical equipment etc. Failure to comply with medical recommendations may jeopardize your benefits.
- DISABILITY COMPENSATION is a non-taxable regular payment to the injured worker at 66- 2/3% of the employee’s average weekly wages not exceeding $140.00 per week. Disability must be medically certified. There are four (4) types of disability compensation:
(a) Temporary total disability – when employee cannot work in any capacity due to the injury or illness.
(b)Temporary total disability – when employee can return to work but with limitations that the employer is able to accommodate but earning less than his/her pre-injury earnings.
(c) Permanent partial disability – when the injury has reached maximum recovery and the attending physician determines the injury has resulted in a permanent impairment and is payable regardless if the employee has returned to work. Compensation is based on type of injury where payment is set by law or through an agreed settlement subject to MISSA approval.
(d) Permanent total disability – when injury or combination of injuries prevent employee from returning to work in any capacity or role. - DEATH BENEFITS Maximum compensation per accident is 40,000 and up to $1,200 for funeral or burial expenses payable to qualified dependents of the employee as defined in RMI WC law. Amounts payable depend on the number of dependents and worker’s average weekly wage at that time. Death benefits are paid periodically or may be allowed as a lump sum.
Injuries received during the journey going into and from the workplace, who will be liable?
The Worker’s Compensation Task Force recommended these types of injuries be excluded from coverage unless the journey was approved or authorized by the employer.
Injuries received during the worker’s lunch break?
Generally not covered, unless the worker was engaging in a work-related task at the request of the employer.
Penalties
Are there penalties for misrepresentation?
Any person who knowingly and intends to defraud, lodge or make a false claim or statement or representation for the purpose of obtaining, affecting or denying any benefit under the WC Law for her/himself or for another person shall forfeit all benefits obtained as a result of the claim. If found to make a fraudulent statement, will be charged with monetary penalties or imprisonment, or both. All claims will be thoroughly investigated.
Claims
Employee or worker: How do I file for worker’s compensation?
Notify your supervisor immediately and complete Form WCA-201 and the Acknowledgement form. If you require medical attention, complete the Medical Authority form from your employer and go to Majuro or Ebeye Hospitals. Authorized treatment is minimal (or no cost to you). Your employer authorizes the first treatment but any follow up treatment that you may require must be authorized by the Insurer.
Is there a time limitation to file a claim?
The right to compensation for disability or death claim is prevented if you file the claim after 1 year (12 months) when you became aware of medical confirmation of disability or death. The filing of a claim does not begin to run until the employee or family member becomes aware of the injury or death and its connection with employment. If payment of compensation is made by the employer/insurer without involving MISSA, a claim may be filed within 1 year from the date of their last payment.
What if my claim is denied or challenged?
Contested claims by the employer/insurer are handled by MISSA through informal conference and formal hearings. MISSA will make a decision in the form of an Order (or award). If your claim is denied, your benefits will cease and you need to contact MISSA immediately or within 14 days. If you wish to appeal the denial, submit Form WCA-202 to MISSA, as a review by the Workers’ Compensation Board.
General
Exemptions
Workers' Compensation Insurance
Injuries & Illnesses
Penalties
Claims
General
General
What is the RMI Worker’s Compensation (WC) Law?
An act to provide compensation to employees or qualified dependents for injury, disability or death that arises out of and in the course of their employment. Its mission is to ensure prompt and accurate benefit payments and appropriate timely treatment to injured employees in order to facilitate their return to gainful employment and recovery from their injuries/illness.
When is the implementation date of the WC Law?
The WC Law will take effect on October 1, 2023.
Which government agency oversees WC Claims?
All private and public sector worker’s compensation claims are overseen by the Claims Department of the Marshall Islands Social Security Administration (MISSA), a.k.a. Marshall Islands Workers’ Compensation Administration, the agency appointed by the Cabinet to administer the workers’ compensation program of the Marshall Islands.
Exemptions
Exemptions
Who may be exempted from the WC Law?
The following employers, self-employed workers and individuals are exempted from the WC law:
- A Marshallese worker who is contracted to work on the USA Army Garrison – Kwajalein Atoll (USAG-KA), or on any operations of the USAG-KA, and covered under the Defence Base Act (DBA) of the United States;
- A non-resident consultant who is working in or on behalf of the RMI;
- A non-resident or Marshallese worker whose project or job assignment is carried outside of the Marshall Islands other than RMI Government workers who are working for the Marshall Islands Embassies, Consulates, and other Government Offices establishes outside of the Marshall Islands, who are not already covered, including constructions workers who are employed by local companies, and are temporarily assigned to complete a project or contract outside of the Marshall Islands;
- Non-resident members of foreign or international diplomatic Corps who are assigned to work in the Marshall Islands, excluding Marshallese employees;
- Non-Resident employees of regional or international organizations;
- Self-employed workers, regardless of nationality, who opted not to be covered by WC law and who have submitted a valid exemption to the Administrator;
- Local students under practicum training and interns;
- Non-Resident or local volunteers, or church missionaries;
Workers' Compensation Insurance
Workers’ Compensation Insurance
If I have employees, do I need worker’s compensation insurance?
Every non-government employer is required to secure worker’s compensation coverage for all their employees through an authorized Insurance Carrier, unless approved by the Administrator as a self-injured or exempted employer. Government workers shall be covered by the RMI Government Self-insurance Fund. A contractor may be liable for and shall secure payment of such compensation to employees of any subcontractor, unless the subcontractor has secured such payment.
What if I am a small business – Do I have to purchase Workers’ Compensation Insurance?
Small family-owned shops or businesses with annual gross income of not more than $25,000 can seek exemption from purchasing insurance. (The owners of these small businesses must submit to MISSA an application for exemption [use form WCA-105] together with their Annual GRT Returns filed with the Revenue & Taxation Office in the last 2 years). You are still responsible for meeting the costs of any claims by your employees if they are injured in your business.
How do I know if my employer has workers’ compensation insurance?
Every employer who has secured worker’s compensation coverage shall keep posted in an obvious and easily accessible place in his/her business, the printed CERTIFICATE OF INSURANCE issued by the Insurance Carrier showing that such employer has secured coverage and complied with their legal obligations.
Who will pay for the WC insurance premium?
Payment of 100% of the premium is the responsibility of the employer.
When does worker’s compensation coverage begin?
Worker’s compensation coverage begins the first day of your employment, even if you are part-time or temporarily (casually) employed.
Who does an employer have to purchase insurance from?
Employers may choose to contact either Moylan’s or Marshalls Insurance Agency for quotations and coverages, as both insurance carriers have agents in the RMI and are committed to the workers’ compensation scheme.
However, an employer can purchase workers’ compensation insurance from any insurance carrier as long as they provide coverage consistent with RMI Workers’ Compensation law.
Can a worker waive his/her right to worker’s compensation coverage?
No this would be unlawful and in breach of section 716 of the Worker’s Compensation Act.
Injuries & Illnesses
Injuries & Illnesses
What work-related injury or illness covered under WC?
All injuries and illnesses sustained at the workplace shall be presumed to be work-related and covered by worker’s compensation, subject to certain exceptions provided by the law.
What injuries or illnesses are covered?
A work-related injury, illness or death is an accidental injury or death arising out of and or in the course of employment. An injury can include an occupational disease or infection that arises out of your employment or unavoidably results from an accidental injury. Work-related injuries may include an injury caused by the willful act of a third person directed against an employee because of his employment.
Employer: How do I report a work-related injury or illness?
MISSA has made available a WC reporting form (WCA-101) which contains instructions in detail on how to report a work injury or related illness. Upon knowledge of a work injury or illness, complete Form WCA 101 and submit this along with all the employee’s documents to the MISSA as soon as possible from the date of injury/illness or within ten (10) calendar days being informed by MISSA. If medical treatment is required, send the injured employee to a medical provider as soon as possible. If the injury or illness is serious you may also need to inform the employee’s family.
Reports and all other documents submitted by the employee must also be sent to your insurer and MISSA.
What if I have a pre-existing condition or injury?
A work-related aggravation of a pre-existing condition is compensable only while the aggravation is the cause of the disability. Once the ‘new’ aggravation resolves and you return to your pre-injury condition, coverage ceases.
What do workers do if emergency medical care is required?
If a worker sustains a serious or life-threatening injury, call an Ambulance. For minor injuries, after seeking First Aid, the worker should go to the Hospital emergency room. Authorization can be hand-carried by the injured worker or forwarded to the hospital at a later time. Upon discharge from the hospital, the worker must provide all paperwork to MISSA and their employer, and obtain prior authorization should he/she require further medical treatment.
Are diseases covered too?
To be covered, there must be a connection or direct relationship between your employment and the disease.
What benefits are available if injured and claiming worker’s compensation?
There are three (3) benefits under WC:
- MEDICAL TREATMENT is provided to the worker for as long as the injury may require. Unauthorized treatment or unrelated treatment can be denied. Coverage includes doctor’s visits, hospitalization, rehabilitation, counselling, diagnostic tests, medicines, medical equipment etc. Failure to comply with medical recommendations may jeopardize your benefits.
- DISABILITY COMPENSATION is a non-taxable regular payment to the injured worker at 66- 2/3% of the employee’s average weekly wages not exceeding $140.00 per week. Disability must be medically certified. There are four (4) types of disability compensation:
(a) Temporary total disability – when employee cannot work in any capacity due to the injury or illness.
(b)Temporary total disability – when employee can return to work but with limitations that the employer is able to accommodate but earning less than his/her pre-injury earnings.
(c) Permanent partial disability – when the injury has reached maximum recovery and the attending physician determines the injury has resulted in a permanent impairment and is payable regardless if the employee has returned to work. Compensation is based on type of injury where payment is set by law or through an agreed settlement subject to MISSA approval.
(d) Permanent total disability – when injury or combination of injuries prevent employee from returning to work in any capacity or role. - DEATH BENEFITS Maximum compensation per accident is 40,000 and up to $1,200 for funeral or burial expenses payable to qualified dependents of the employee as defined in RMI WC law. Amounts payable depend on the number of dependents and worker’s average weekly wage at that time. Death benefits are paid periodically or may be allowed as a lump sum.
Injuries received during the journey going into and from the workplace, who will be liable?
The Worker’s Compensation Task Force recommended these types of injuries be excluded from coverage unless the journey was approved or authorized by the employer.
Injuries received during the worker’s lunch break?
Generally not covered, unless the worker was engaging in a work-related task at the request of the employer.
Penalties
Penalties
Are there penalties for misrepresentation?
Any person who knowingly and intends to defraud, lodge or make a false claim or statement or representation for the purpose of obtaining, affecting or denying any benefit under the WC Law for her/himself or for another person shall forfeit all benefits obtained as a result of the claim. If found to make a fraudulent statement, will be charged with monetary penalties or imprisonment, or both. All claims will be thoroughly investigated.
Claims
Claims
Employee or worker: How do I file for worker’s compensation?
Notify your supervisor immediately and complete Form WCA-201 and the Acknowledgement form. If you require medical attention, complete the Medical Authority form from your employer and go to Majuro or Ebeye Hospitals. Authorized treatment is minimal (or no cost to you). Your employer authorizes the first treatment but any follow up treatment that you may require must be authorized by the Insurer.
Is there a time limitation to file a claim?
The right to compensation for disability or death claim is prevented if you file the claim after 1 year (12 months) when you became aware of medical confirmation of disability or death. The filing of a claim does not begin to run until the employee or family member becomes aware of the injury or death and its connection with employment. If payment of compensation is made by the employer/insurer without involving MISSA, a claim may be filed within 1 year from the date of their last payment.
What if my claim is denied or challenged?
Contested claims by the employer/insurer are handled by MISSA through informal conference and formal hearings. MISSA will make a decision in the form of an Order (or award). If your claim is denied, your benefits will cease and you need to contact MISSA immediately or within 14 days. If you wish to appeal the denial, submit Form WCA-202 to MISSA, as a review by the Workers’ Compensation Board.