Government Committed to Operationalize Workers Compensation Fund
Minister of Labour Vera Kamtukule on Friday revealed that government has allocated K100 million in the 2022/2023 1 budget aimed at coercing operationalization of Workers Compensation Fund (WCF).
Kamtukule made the revelation on Friday during an interface meeting with business captains on operationalization of the worker’s compensation fund.
The compensation fund will be used as employers’ insurance.
“The workers compensation fund is going to be a pool of resources that is going to be made from the business captains as well as government to ensure that the compensations to injured employeed are given within a short period of time,” she said.
Kamtukule added the success of operationalization of the fund depends on government working together with the business captains.
“There is an adherent aspect of how we are going to manage contributions. It is everybody’s responsibility to make sure that employers in the country are making remittance to the fund and it is the employers that have everything to lose if there are not contributing because if injuries happen the system is going to take charge,” she said
On his part, Employers Consultative Association of Malawi (Ecam) Executive Director George Khaki said the fund is very crucial to the employers considering the current wave of claims both genuine and fake.
He said: “In most cases, the genuine injuries are exaggerated when claiming while fake claims include bogus claimants and employees and what has made it worse is the rush to use lawyers before allowing the normal processes of claiming.
“As a result, most insurance companies have resorted to either refuse cover or they charge higher rates while clients have been asking for higher limits given by the courts.”
Representing the workers, Vice President of Malawi Congress of Trade Unions Kelvin Chifunda said there is need for government and employers to see the safety of employees as one way of reducing claims for compensation.
“The law is already there but is not being adhered to by the employers, so when we come up with the fund it’s like saying that whether you get injured or not there is a fund that will support you, the fund should be there in case there are injuries.
“Most manufacturing companies in the country they don’t care about what employees are going through, many employees have been injured because there is no safety at their work places,” Chifunda said
Government last year launched the workers compensation fund to chiefly help in addressing some of the calamities faced by both workers and employers.