COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT COIDA

COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT (COIDA), 130 OF 1993 AS AMENDED Presentation to the Portfolio Committee on Labour 20 th January 2009 S. S. MKHONTO

VISION To develop and implement solutions to provide quality and accessible services according to standards as set in consultation with stakeholders, whilst maintaining the Fund’s liquidity.

MISSION To provide compensation for occupational injuries and diseases, the rehabilitation of employees and deliver continuous value to all stakeholders

STRATEGIC OBJECTIVES • To provide an efficient social safety net • Ensure the financial viability of the Fund • Effective cash and investments management • Management reforms and restructuring of the Fund are effected • Enhance quality and access to COIDA services and information • Effective data and information management ensured

SPECIFIC OUTPUTS - (2007/08) Reforming Management and restructuring of the Fund through the following initiatives : • Establishing an automated integrated claims and revenue management system • Refocusing the Fund for better service delivery • Developing and implementing an advocacy, communication and marketing strategy • Improving turn-around time for claims settlement • Improving collection and access to services

ACHIEVEMENTS • The review of backlog claims from 2000 to 2004 was finalised. A total of 88% accepted claims were paid. • Increase in employer registration • Elimination of cheque payments • Improvement in revenue collection by 15% • Communication strategy in place

CHALLENGES The following strategic outputs were not achieved in the reporting year; • Policy on Early Return to Work not finalised • Claims turn-around time still remains a challenge • Slow progress in the implementation of the integrated claims and revenue management system

FINANCIAL INFORMATION 2006/07 R’ 000 2007/08 R’ 000 Variance % Contributions revenue Investment income Other income 3, 889, 963 3, 268, 589 15. 0 889, 193 1, 349, 815 51. 8 38, 431 15, 669 -59. 2 Benefits paid 1, 820, 660 1, 298, 420 -28. 7 Admin 565, 143 401, 429 -29. 0 Surplus/deficit 808, 242 -714, 415 -188. 4 MARCH 2008 Investments 15, 142, 222 16, 655, 425 10. 0

FINANCIAL INFORMATION contd… Benefits No. of payment s made Amount MEDICAL 777 320 1, 294, 380, 035 COMPENSATION 335 345 652, 466, 698 1, 112, 665 1, 946, 846, 733 TOTAL

CLAIMS STATISTICS : 2001 - 2008 FINANCIAL YEAR CLAIMS OPENED CLAIMS ACCEPTED CLAIMS REPUDIATED CLAIMS PAID 2000 - 2001 214 743 172 618 2 211 153 650 2001 – 2002 295 014 242 071 4 932 214 255 2002 - 2003 226 941 194 540 3 717 172 155 2003 - 2004 241 470 210 382 3 123 186 323 2004 - 2005 222 920 191 873 2 637 165 509 2005 - 2006 237 994 202 844 2 035 176 692 2006 - 2007 213 241 172 020 1 430 147 701 2007 - 2008 209 830 164 085 1 123 122 147

MEDICAL PAYMENTS - 31 MARCH 2008 R 1, 450, 000 R 1, 430, 143, 788 Amount paid R 1, 400, 000 R 1, 350, 000 R 1, 294, 380, 035 R 1, 300, 000 R 1, 250, 000 R 1, 200, 000 2006/7 2007/8

MEDICAL PAYMENTS - 31 MARCH 2008 2006/7 2007/8

NO. OF COMPENSATION BENEFITS 31 MARCH 2008

AMOUNT OF COMPENSATION BENEFITS

AUDITOR-GENERAL - Disclaimer 1. Revenue Generation and Collection • Material incorrect assessments • Material incorrect debtors 2. Claims Incurred • A backlog in the scanning of documents • Unavailability of supporting documents 3. Unexplained Charge arising from the Treasury Function • Breakdown in internal controls with regard to bank reconciliations • Completeness and accuracy of investment income

PRIORITIES FOR 2008/09 • Consolidating the EFT Payments • Improving Collections • Improving the claims turn-around time • Development of the Fund’s information systems • Addressing the human capacity challenge

PROGRESS TO DATE • Business process re-engineering and benchmarking completed • Interim structure and critical posts approved • Appointment of management team in progress • Policies finalised and approved • Electronic payments to clients effected • Awareness campaigns conducted via print and radio media • Appointment of Board members finalised and orientation conducted • Workshop held with stakeholders on Early Return to Work programme

THANK YOU