Industrial Accident Costs

Accident Costs

Accident causes lot of botheration to the worker affected, employer and the government. There are both direct and indirect costs, the later is immeasurable. Accident costs are as follows:

Direct Costs

Wages of the employee during the period of his absence from duty.

a) The amount of compensation so to be paid on account of death, permanent injury temporary injury caused during accident.

b) The cost of medical aid provided to the injured person due to injury.

c) The expenditure of recruiting and training person as a replacement to the injured worker.

d) Loss due to wastage of material, loss of production time and quality deterioration arising out of inexperience and lack of skill of the new employee.

Indirect Costs

There are a number of indirect costs too like the following:

a) There is interruption in work after an accident because other employees come to the help of the injured employee/worker.

b) The cost of time lost by supervisory staff while assisting injured employee, investigating the cause of accident and helping Govt. agencies making enquiries about the accident.

c) The cost of machines, equipment and other in infrastructural facilities that might have been damaged in the accident.

d) The loss of production due to lower productivity of other employees because of low morale on account of fear of accident.

e) An increase in overhead costs per unit of productivity of other employees because of low morale on account of fear of accident.

f) The cost incurred by the government on maintaining checking stat for implementing safety measures to he adopted in the enterprise.