Definition of Injury-Disease Compensation Annuities

Definition of injury-disease compensation annuities
- An “injury-disease compensation annuity” means insurance benefits paid, instead of temporary layoff benefits, to any worker receiving medical care benefits who continues to be in a state that meets all the following requirements even 2 years after the day of commencing the medical care: ① The injury or disease remains uncured; ② The grade of serious conditions caused by the injury or disease falls under any of Grades 1 through 3; ③ They continue to fail to obtain a job due to such medical care (Article 66 (1) of the Industrial Accident Compensation Insurance Act, and Article 65 (1) and Attached Table 8 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act).
※ The term "serious conditions" means reaching a state in which an injury or disease has been completely cured or there are no further expected effects of treatment with its symptoms remaining unchanged (Subparagraph 4 of Article 5 of the Industrial Accident Compensation Insurance Act).
※ The term "invalidity" means a state in which the ability to work has been lost or diminished due to mental or physical damage caused by an occupational injury or disease, which remains uncured (Subparagraph 6 of Article 5 of the Industrial Accident Compensation Insurance Act).
Requirements for Injury-Disease Compensation Annuities

Requirements for injury-disease compensation annuities
- If a worker who receives medical care benefits continues to be in a state that meets all the following requirements even 2 years after the day of commencing the medical care, an injury-disease compensation annuity shall be paid to such worker instead of temporary layoff benefits (Article 66 (1) of the Industrial Accident Compensation Insurance Act, and Article 65 (1) and Attached Table 8 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act):
· The injury or disease remains uncured;
· The grade of serious conditions caused by the injury or disease falls under any of Grade 1 through 3;
· They fail to obtain a job due to such medical care.
Claims for Injury-Disease Compensation Annuities

Claims for injury-disease compensation annuities
- A worker suffering from an occupational accident who receives medical care benefits (including additional medical care) shall file a written claim for injury-disease compensation annuities and a certificate of serious conditions as issued by the industrial accident compensation medical institution where he/she is receiving medical care with the Korea Workers’ Compensation & Welfare Service to claim the injury-disease compensation annuities (Article 64 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act and Article 40 (1) and Forms 7 and 8 of the Regulations of Compensation Affairs).
※ Any worker suffering from an occupational accident may claim injury-disease compensation annuities offline at the Korea Workers' Compensation & Welfare Service or online via the Employment/Industrial Accident Insurance Total Service of the Korea Workers' Compensation & Welfare Service.

Extinctive prescription of injury-disease compensation annuities
- If the right to claim injury-disease compensation annuities is not exercised for 3 years after the next day of becoming a beneficiary of an injury-disease compensation annuity, it shall become extinctive by prescription (Subparagraph 1 of Article 112 (1) of the Industrial Accident Compensation Insurance Act).
- Extinctive prescription of the right to claim injury-disease compensation annuities shall be interrupted by a request for injury-disease compensation annuities filed by the beneficiary. In such cases, where the request for injury-disease compensation annuities is the first request requiring a judgment on whether the case concerns an occupational accident, the interruption of prescription resulting from the request shall affect the other insurance benefits (Article 113 of the Industrial Accident Compensation Insurance Act).
Payment of Injury-Disease Compensation Annuities

Payment of injury-disease compensation annuities
- The injury-disease compensation annuities shall be paid according to the grades of serious conditions as prescribed in the following table of injury-disease compensation annuities (Article 66 (2) and the attached Table 4 of the Industrial Accident Compensation Insurance Act).
· Grade 1: The average wage for 329 days
· Grade 2: The average wage for 291 days
· Grade 3: The average wage for 257 days
- Injury-disease compensation annuities shall be paid within 14 days after the decision for payment thereof (Article 82 (1) of the Industrial Accident Compensation Insurance Act).
- No public charges of the State or local governments shall be imposed on any money or valuables offered as injury-disease compensation annuities (Article 91 of the Industrial Accident Compensation Insurance Act).

Payment of injury-disease compensation annuities according to changes in the grades of serious conditions
- Any worker suffering from an occupational accident who intends to report a change in their serious conditions grade after being aware of such change shall file a report of a change in the grades of serious conditions and a medical certificate capable of proving his/her serious conditions with the Korea Workers’ Compensation & Welfare Service (Article 64 (3) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act and Article 40 (7) and Forms 8 and 23 of the Regulations of Compensation Affairs).
- If the serious conditions grade of a worker receiving an injury-disease compensation annuity has changed, the Korea Workers’ Compensation & Welfare Service shall pay, upon request of the beneficiary or by virtue of its authority, an injury-disease compensation annuity based on the new serious conditions grade starting from the date on which such change has taken place (Article 64 (2) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act).

Claims for and payment of unpaid injury-disease compensation annuities
- If a beneficiary of an injury-disease compensation annuity dies, their survivor shall file a written claim for an unpaid injury-disease compensation annuity with the Korea Workers' Compensation & Welfare Service in order to receive such annuity instead of the deceased beneficiary (Article 81 of the Industrial Accident Compensation Insurance Act and Article 49 and Form 29 of the Regulations of Compensation Affairs).
- Unpaid injury-disease compensation annuities shall be paid within 14 days after the decision for payment thereof (Article 82 (1) of the Industrial Accident Compensation Insurance Act).

Prohibition, etc. of transfer and seizing of entitlement to injury-disease compensation annuities
- Each worker’s entitlement to injury-disease compensation annuities shall not be extinguished by their retirement (Article 88 (1) of the Industrial Accident Compensation Insurance Act).
- Entitlement to injury-disease compensation annuities may not be transferred, seized or offered as collateral (Article 88 (2) of the Industrial Accident Compensation Insurance Act).

Collection of unjust gains
- Where any person receives an injury-disease compensation annuity by fraud or other improper means, an amount equivalent to double the injury-disease compensation annuity shall be collected from him/her (The former part of Article 84 (1) of the Industrial Accident Compensation Insurance Act).
Effect of Payment of Injury-Disease Compensation Annuities

Interruption of payment of temporary layoff benefits
- Since injury-disease compensation annuities are insurance benefits paid in lieu of temporary layoff benefits, any worker receiving an injury-disease compensation annuity is not able to receive temporary layoff benefits (Article 66 (1) of the Industrial Accident Compensation Insurance Act).

Dismissal after paying lump-sum compensation benefits
- If a worker who receives medical care benefits has received any injury-disease compensation annuity after the 3rd anniversary of the commencement of medical care, the relevant employer shall be deemed to have paid lump-sum compensation benefits as prescribed in Article 84 of the Labor Standards Act after such 3rd anniversary and may dismiss the worker receiving medical care (Article 80 (4) of the Industrial Accident Compensation Insurance Act).