Statutory Workers Compensation Insurance

Employers Guide to Statutory Workers Compensation Insurance

www.if.fi

1. To the Reader . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. The Finnish Workers Compensation Insurance System . . . . . . . . . . . . . . . . . . . . . . . . . 2 3. Employment Accident Insurance . . . . . . . . . . . . 2 4. Supplementary Insurances . . . . . . . . . . . . . . . . . 4

5. Voluntary Insurance in Accordance With the Employment Accidents Insurance Act . . . . 5 6. Employment Accident Compensations . . . . . . . 6 7. Other Obligations of the Employer. . . . . . . . . . 8

1. To the Reader
The purpose of this guide is to provide the reader with basic information on the Finnish workers compensation insurance system, on annual measures relating to the statutory workers compensation insurance, and on premiums and accident compensations. In addition to these, this guide presents insurance which supplement the employment accident insurance: employers and employees unemployment insurance, and employees group life insurance. The handling of If P&C Insurance Company Ltds employment accident insurance and claims settlement for entrepreneurs, small and mid-size companies and general government takes place in Turku. Postal address: 20025 IF Telephone within Finland is 010 19 15 15, and from abroad +358 10 19 15 15. Telefax within Finland is 010 514 1678 or 010 514 2454, and from abroad + 358 10 514 1678 or +358 10 514 2454. Our visiting address is Kalevantie 3, Turku. The handling of If P&C Insurance Company Ltds employment accident insurance and claims settlement for large and international companies takes place in Helsinki. Postal address; 00025 IF Telephone within Finland 010 19 15 15, and from abroad +358 10 19 15 15. Telefax within Finland 010 514 5780, and from abroad + 358 10 514 5780. Our visiting address is Niittyportti 4, Espoo.

2. The Finnish Workers Compensation Insurance System

The compensation system of employment accidents and occupational diseases in Finland is based on the Employment Accidents Insurance Act. Accordingly, the employee is entitled to compensation for loss or damage caused by employment accident or occupational disease and, correspondingly, the employer is obliged to insure his employees. The statutory workers compensation insurance is a part of a working persons social security. The compensations paid from the statutory workers compensation insurance take precedence over compensations from other insurance systems. In Finland, the statutory workers compensation insurance is administered by private accident insurance companies, such as If P & C Insurance Company Ltd. Consequently, employers in the private and public sector take out insurance from these private accident insurance companies.

3. Employment Accident Insurance

3.1 obligation to insure
The obligation to insure applies to all employers that hire persons within the scope of the Employment Accidents Insurance Act. In accordance with the Employment Accidents Insurance Act, an existing employment relationship entitles the employee to compensation for an employment accident. Employee refers to a person who works for somebody else under a contract under his administration and supervision and receives payment for the work. If the person is in more than one employment relationship simultaneously, for instance, if he has two part-time jobs, both employers are obliged to take out insurance for that part of the work which is done for them. If the number of working days is less than 12 during one calendar year, the employer is not obliged to take out insurance for the employee. If the employer has neglected his obligation to insure, the Federation of Accident Insurance Institutions pays a compensation to the employee in accordance with the Employment Accidents Insurance Act after which the compensations paid are collected from the employer up to a certain limit. Additionally, the employer is obliged to pay an increased premium, the amount of which is at the most four times the normal premium, for the neglected period of time. The statutory workers compensation insurance is an open policy. This means that one insurance covers all the employees working for a company.

The following persons are within the scope of the workers compensation insurance:
persons in employment relationship, and civil servants an employee who is in a leading position in a limited company and who, alone or together with family members living in the same household, owns no more than half of the companys share capital a partner in a leading position in a general or limited partnership who, alone or together with family members, has no more than half of the authority over the general or limited partnership company certain students, participating in practical training in accordance with the syllabus patients in certain care institutions and homes, who participate in practical work in accordance with the treatment programme.

Statutory Workers Compensation Insurance

The following persons are not within the scope of the accident insurance:
private entrepreneurs family members living in the same household with the private entrepreneur an employee who is in a leading position in a limited company and who, alone or together with family members living in the same household owns more than half of the companys share capital a partner in a leading position in a general or limited partnership who, alone or together with family members, has more than half of the authority over the general or limited partner-ship company person doing voluntary or other unpaid work.

termination must be made at the latest three months before the intended date of termination. The insurance can only be terminated in purpose of transfer on the last day of March, June, September and December. Thus, for example, if the employer leaves the notice of termination on December 15th, the insurance will be terminated on March 31st and will come into force in another company on April 1st. This does not apply to the rst insurance period. The insurance can not be transferred during the rst insurance period. The cancellation is valid only if it is proved that the insurance has been taken out from another insurance company and that the insurance enters into force at the beginning of the following calendar year. The insurance expires if the policyholder is found to be indigent at distraint of premiums or if the where-abouts of the policyholder are unknown.

insuring work abroad

As a general rule, the accident insurance cover is valid also during temporary assignments abroad. With respect to employees hired by a Finnish company at the site of work in a foreign country, the legislation of the country in which the work is done is applied. If a Finnish company employs a foreigner to work in Finland, the employee falls within the scope of the companys Finnish accident insurance. If a foreign company employs a Finnish person who works permanently in Finland, the company is obliged to take out insurance in Finland.

3.3 share of compensation paid by the employer

The employer can take out statutory workers compensation insurance either with or without deductible. If the employer has an insurance with deductible, he pays compensation for each accident in accordance with the annually conrmed amount stipulated in the Employment Accidents Insurance Act. The exceeding part is paid by the insurance company. The share of the employer was EUR 200 in 2009. If the employer has chosen an insurance without deductible, the insurance company pays the accident compensation in its entirety. The premium for such an insurance is somewhat higher than for the insurance with deductible.

3.2 validity of the insurance contract

After having chosen an insurance company the employer must make an insurance application in order for the insurance to come into force. This can be done, for instance, by visiting our branch ofce or by calling us. The liability of the insurance company starts at the earliest from the point of time when the application veriably has been submitted to the branch ofce or agent, unless a later time has been agreed on. It is not possible to bring the insurance into force retroactively. We recommend that the insurance application is submitted well before the employee starts working. The statutory workers compensation insurance can be taken out for a xed-term or on a continuous basis. For temporary employment relationships which are assumed to last less than one year, the insurance is taken out for a xed-term, until the expiry date of the employment relationship. A temporary insurance is valid until the insured work ends. The temporary insurance expires without a notice of termination. If the work continues longer than reported when applying for the insurance, the policyholder must inform the insurance company about it. The insurance period of a continuous insurance is normally one calendar year. After the rst insurance period the insurance continues one calendar year at a time. The expiry of a continuous statutory workers compensation insurance is strictly regulated in the Employment Accidents Insurance Act as well as in the general terms and conditions of the statutory workers compensation insurance. If the company discontinues its activities or the work ends and all employees are made redundant and the employer, consequently, no longer is obliged to insure the employees, the employer must notify the insurance company of this. The notication of the end of the obligation to insure must be made in writing. If the employer cancels the insurance with the purpose of transferring to another insurance company, the notice of

3.4 paying the premium

The workers compensation insurance premium is calculated on the basis of the salaries and wages paid to the employees. At the beginning of the rst insurance period and thereafter at the beginning of each new insurance period, an advance premium is charged which is calculated on the basis of estimated salaries and wages. When lling in the insurance application the employer is asked to estimate the salaries and wages to be paid. Since the accident risk involved in the work affects the insurance premium, the estimated salaries and wages are specied by occupational category. The advance premium for the new insurance period is usually calculated in December when the new grounds for the calculation of premium are available. The actual salaries and wages paid during the insurance period are known only after the insurance period has ended. The employer noties the insurance company of these salaries and wages through a specic payroll declaration. The nal premium is calculated on the basis of the information given in this declaration. By comparing the advance premium and the nal premium the insurance company evaluates whether the advance premium has been too high or low. The difference is then charged or refunded as adjustment premium. If the premium is not paid by the date due, a penal interest is charged in accordance with the terms and conditions. Insurance premiums can be collected by distraint without a court judgement or decision.

3.5 notications relating to the maintaining of the insurance

payroll declaration
Before the end of the insurance period, the policy-holder receives a notication form for the reporting of the nal salaries and wages paid out. These salaries and wages are specied by occupational category. The total salaries and wages paid to the employees

Statutory Workers Compensation Insurance

before tax, including fringe benets, overtime payments, annual holiday compensations, holiday pays, holiday salaries, gifts and other extraordinary rewards, piece rates, and sick pays. If the policyholder neglects to submit to the insurance company the information needed for calculating the premium, or gives false information, the insurance company is entitled to make an estimate and charge the premium at the most fourfold, for that part of information which the negligence concerns.

The premium to be paid by the employer consists of three parts:

A risk premium, the amount of which is determined on the basis of accident statistics. The risk premium is needed for the payment of accident compensations. Since the accident risk involved varies in different occupations, the premiums vary accordingly. Different occupations are classied into groups, on the basis of which the risk category is determined. A risk premium coefcient, based on the accident statistics of the latest ve-year period available, is conrmed annually for each risk category. An administrative cost, which covers the expenses of maintaining the insurance. Statutory increments and government medical expenses fee, the amounts of which are conrmed annually by the Ministry of Social Affairs and Health. The additional payments are used for the nancing of, for instance, employment pension (TEL) index increases payable on accident compensations. The share of the statutory additional payments is about 15,7% of the total premium in 2009.

notication of changes
During the insurance period, some changes may take place in the company which the insurance company must be notied of. The insurance company must be informed, for instance, of changes in the company name, address, owner-ship, or company form. The insurance company must also be informed of changes in the eld of activity, in the distribution of various tasks, or in the number of employees, or of changes in the amount of salaries and wages paid. On the basis of these changes the advance premium is adjusted if necessary.

3.6 premiums
The bases of the statutory workers compensation insurance premiums are conrmed in each insurance company annually.

company discount
The company discount granted by If Insurance Company is depending on how long the customership has lasted.

The premiums are determined according to either of the following two basic systems:
General tariffs, which are based on extensive national statistics. These rates are applied to small and medium-sized insurances. Special tariffs, in the calculation of which the own loss statistics of the insurance are applied. These special tariffs apply to large insurances whose annual premiums meet the minimum quantity levels which are annually conrmed for the so-called obligatory special tarifng.

workers compensation insurance premium and taxation

The deductibility of the workers compensation insurance premium in taxation is determined on the basis of the Business Tax Act and the Act on Income and Capital Tax. Premiums paid for employees in business activities are usually tax-deductible, whereas premiums arising from activities serving the personal interests of a private employer are not.

4. Supplementary Insurances
Unemployment insurance and employees group life insurance are insurances which are administered as supplementary insurances to the employment accident insurance. However, accident insurance companies are not involved in the claims settlement of these.

employers unemployment insurance premium

Every employer who is obliged to take out accident insurance for his employees must pay the employers unemployment insurance premium. The amount of the employers unemployment insurance premium is annually conrmed by the Ministry of social affairs and Health. The amount of the premium is 0,65% for the rst EUR 1 788 000 of the payroll amount in 2009. For that part of the payroll amount which exceeds EUR 1 788 000 the premium is 2,7%. A partial entrepreneur pays 0,65% of his earned income. The premiums are calculated on the same earned income as the workers compensation insurance premium.

4.1 unemployment insurance premiums

Employers and employees pay unemployment insurance premiums with the purpose of nancing unemployment security. These premiums are charged in conjunction with workers compensation insurance by the insurance companies, and are rendered to the Unemployment Insurance Fund. Private entrepreneurs and their family members, partners of general partnerships, or answerable partners of limited partnerships are not obliged to pay the unemployment insurance premium. Additionally, certain shareholders or employees of a limited company who are considered partial entrepreneurs pay a reduced premium. The local branches of the Social Insurance Institution and unemployment funds pay out unemployment benets.

employees unemployment insurance premium

Employees have paid employees unemployment insurance premium since 1993. In 2009 the amount of the premium is 0,20% of the earned income. For a partial entrepreneur the premium is 0,07% of the earned income. The employer deducts the premium before each payment of salaries and wages. The accident insurance company charges the premiums from the employer and forwards them to the Unemployment Insurance Fund.

Statutory Workers Compensation Insurance

4.2 employees group life insurance

The employees group life insurance agreed on by the central labour market organisations is administered in connection with the statutory workers compensation insurance. For employers in the private sector, the amount of the premium charged by us is 0,76% per mille of the payroll amount in 2009. All persons who must be insured in accordance with the Employment Accidents Insurance Act also fall within the scope of the group life insurance. Almost all life insurance companies in Finland offer this insurance on a joint and several basis. The

Employees Group Life Assurance Pool has been established for the implementation of this system. The insured interest is the death of the insured, regardless of the cause of death. The beneciaries are primarily the employees spouse and children under the age of 18. The sum insured consists of a basic sum as well as of child and accident increases. In order to receive the sum insured an application for compensation must be lled in. Claims settlement matters relating to employees group life insurance are handled by a pool at Retro Life Assurance Company Ltd (Mikonkatu 15 A, 00100 Helsinki, tel. +358 20 7631 690 and fax +358 20 7631 689).

5. Voluntary Insurance in Accordance With the Employment Accidents Insurance Act

The insurance contract and the compensation benets of these insurances are based on employment accident insurance legislation, but there is no statutory obligation to take out these insurances.

5.3 leisure time insurance

leisure time group insurance
The leisure time group insurance can be taken out for the entire personnel of a company or for a certain group of employees. The group has to comprise at least two persons. The insurance covers leisure time accidents. The insurance terms and conditions include some restrictions to the scope of coverage.The insurance does not cover accidents which occur, for instance, when the insured is working on his own account. However, there are no restrictions concerning sports in the insurance terms and conditions, except for professional athletes. The compensations are determined in accordance with the Employment Accidents Insurance Act. However, there are differences in the determination of the annual income and in the integration of compensations.

5.1 accident insurance of the self-employed

The accident insurance of self-employed persons can be taken out to insure the self-employed person and his family members as well as those partners and shareholders who are not covered by obligatory insurance (see 3.1). The insurance is valid both at work and during leisure time. The insurance covers accidents, occupational diseases, and injuries as specied in the so-called Handicap Decree. The compensations are determined in accordance with the regulations of the Employment Accidents Insurance Act. The insurance terms and conditions include some restrictions to the scope of coverage. The insurance does not cover injuries caused by, for instance, assault and battery during leisure time. However, there are no restrictions concerning sports in the insurance terms and conditions, except for professional athletes. Compensation for loss of income is calculated on the basis of a predetermined annual income. The insurance terms and conditions do not include regulations on the integration of benets which means that no deductions are made from the compensations which are paid in accordance with the agreed annual income. However, a pension payable from this insurance may reduce the disability pension payable from the employment pension system.

individual leisure time insurance

The individual leisure time insurance is always granted to a named person only. The annual income, which functions as a basis for the compensation for loss of income, is agreed on in the insurance contract. The compensations are determined in accordance with the Employment Accidents Insurance Act. The personal leisure time insurance includes restrictions on sports activities. These restrictions can, however, be removed against an increased premium.

sports insurance
The sports insurance can be taken out as a group insurance to cover the companys entire personnel. The sports insurance covers accidents occurring in company sports activities. The compensations are determined as in the leisure time group insurance where applicable.

5.2 voluntary insurance covering working hours

The voluntary accident insurance covering working-hours can be taken out to insure persons who are not covered by the statutory workers compensation insurance against accidents at work. The voluntary insurance covering working hours is equivalent to the accident insurance of self-employed persons, except for the fact that it does not cover leisure time accidents. Compensations for loss of income are calculated on the basis of predetermined annual income.

Statutory Workers Compensation Insurance

6. Employment Accident Compensations

6.1 employment accidents and occupational diseases
Accident refers to a sudden and external occurrence causing bodily injury and taking place against the will of the person. One example of this is slipping. An employment accident is an accident which causes injury or illness to the employee and which takes place at work, or in circumstances caused by work - at the place of work - on the way to or from work, or - on errand run for the employer, or while protecting or rescuing property of the employer or human lives in connection with work, or in the aforementioned circumstances as a result of war or armed conict. Certain injuries arising within a short period not exceeding 24 hours are also compensated as employment accidents. Such injuries include abrasions, or sore muscles or tendons arising from work movement. According to the Occupational Diseases Act, an occupational disease is, a disease which is caused mainly by physical, chemical or biological factors prevailing at work. Such factors include noise,vibration, dust and gases. Occupational diseases comprise, for instance, tendovaginitis, rashes and lung diseases.

property damage
Workers compensation insurance covers spectacles, hearing aids, dentures, orthopaedic dressings, back braces as well as articial limbs and organs which were used by the injured and broken or lost in connection with an employment accident. Other property damage is normally not compensated.

medical examination expenses

Necessary and justiable expenses for medical examinations, carried out to dene whether a disease or injury is caused by employment accident, are compensated, even when the injury or disease did not turn out to be compensable in accordance with the Employment Accidents Insurance Act.

other compensations
In some cases, the following compensations can be paid: compensation for increased household management expenses, additional handicap indemnity for exceptional handicap, clothing allowance in case the use of an articial limb or other aid causes exceptional wearing of clothes, and guide dog allowance if the injured needs to acquire a guide dog due to an employment accident.

daily allowance
Daily allowance is granted when the injured has been completely or partly unable for work for at least three successive days excluding the day of the accident. The daily allowance is paid for a maximum period of one year as from the day of the accident. If the disability continues after this period, compensation for lost earnings will be paid in theform of employment accident pension. The amount of the daily allowance and the employment accident pension is based on the injureds income. The daily allowance is taxable income.

6.2 compensations
compensation for expenses
Workers compensation insurance compensates the employee for expenses arising from medical treatment in case of employment accident. These medical expenses include medical care and medication. Medical expenses are compensated without time or monetary limits. For accidents that have occurred before Jan 1st 2005, hospital treatment is compensated primarily in accordance with the general tariffs of general hospitals. If the accident has occurred after Jan 1st 2005, it is compensated according to Full Compensation Act. According to the Act, insurance companies pay full compensation directly to the producers of medical care due to medical treatment of accidents. Insurance companies are now able to channel patients with a commitment to pay to such treating institution (private or public sector) that will treat the patient as soon as possible. The essential objective of the reform is to accelerate the treatment and rehabilitation of patients injured in accidents at work. Urgent treatment due to an accident, however, will still mainly be given by the public sector. It has now become even more critical, that the employer informs the insurance company immediately of the accident (accident report, described on the next page). Without accident report the insurance company is unable to channel patients to the best available medical care institution. Travel costs resulting directly from medical care are also compensated.

employment accident pension

Employment accident pension is paid when the employees capacity for work has reduced as a result of employment accident or occupational disease and the earnings have decreased after the period of daily allowance. The injured is entitled to employment accident pension if he is unable to return to work or if his earnings will decrease. If the employee is completely incapable for work his employment accident pension is 85 % of his annual income. The employment accident pension is taxable income. The amount of the employment accident pension is revised annually in accordance with the TyEL (Employees Pensions Act) wages index.

loss of income resulting from physical therapy

If the injured receives physical therapy because of employment accident or occupational disease, and the physical therapy takes place during working hours, the resulting loss of income is compensated.

handicap indemnity
Handicap indemnity is paid for permanent general handicap caused by injury or disease. The amount of the handicap indemnity is determined on medical grounds in accordance with the decision on handicap classication given by the Ministry of Social Affairs and Health.

Statutory Workers Compensation Insurance

rehabilitation
The aim of rehabilitation is to rehabilitate an employee who has become incapable for his former work. The means used are, for instance, medical rehabilitation, training, and preparation for work. Rehabilitation matters are handled centrally through the Insurance Rehabilitation Agency.

6.4 payment of compensation

claims settlement decision
The claims settlement procedure starts from when the insurance company receives the accident report. However, any written claim for compensation is, in principle, sufcient to start the procedure. When the insurance company is notied of the case, it is obliged to acquire any information needed for the settlement of the case. After having received the required information, the insurance company gives a decision in writing, which is sent to the injured and to the employer.

survivors pension
If the employee dies as a result of an employment accident or occupational disease, his beneciaries are entitled to survivors pension. The survivors pension is granted as a spouses pension and/or childrens pension. As a general rule, a wedded spouse is entitled to a spouses pension, but also a common-law spouse may be entitled to the spouses pension. The childrens pension is paid to children under the age of 18, and to children who are full-time students until the age of 25. The maximum amount of survivors pension is 70 % of the employees annual income. The survivors pension is taxable income. The amount of the survivors pension is revised annually in accordance with the TyEL (Employees Pensions Act) wages index.

payment of compensation
The daily allowance is paid monthly in arrears. The employment accident pension, continuously paid handicap indemnity, and survivors pension are paid monthly in advance.

sick pay
The employers obligation to pay the employees for the period they are unable to work is determined on the basis of the Contracts of Employment Act and collective labour agreements. Daily allowance or employment accident pension granted under the workers compensation insurance is paid to the employer insofar as the employer has paid the injured salaries or wages during the sickness period. During a period of four weeks as from the day of the accident, the daily allowance equals the sick pay paid by the employer. The gross amount of sick pay is compensated the employer, covering also the tax withheld. If the employer has not paid sick pay, the compensation is paid to the injured.

funeral grant
Funeral grant is paid to the decedents estate or to the person who took care of the funeral arrangements. The amount of the funeral grant is a xed sum irrespective of the amount of the actual funeral expenses. In 2009 the funeral grant is EUR 4 340.

6.3 claiming for compensation insurance certicate

The insurance certicate entitles the employee to free medical care in Finland. The employer lls in the insurance certicate and gives it to the employee. It can also be sent afterwards to the medical care institution. The insurance certicate is not a nancial obligation but a certicate of the insurance company from which the employer has taken out workers compensation insurance. After having received the necessary information, the insurance company investigates the compensability. Insurance certicates are issued by the insureds own insurance company.

taxability
The daily allowance, the compensation for lost earnings due to physical therapy, the employment accident pension and the survivors pension paid in accordance with the statutory workers compensation insurance are entirely taxable income insofar as they are compensations for lost earnings. Compensations for expenses, funeral grant, handicap indemnity and additional handicap indemnity are tax-free compensations.

accident report
An accident report is needed for the handling of the claim whenever the incapacity for work has lasted for three successive days excluding the day of the accident. The accident report has to be made also in cases of occupational disease, or death, and when the employment accident is a road accident. The report has to be made without delay by use of a form approved by the Ministry of Social Affairs and Health, which can be obtained from any insurance company. As a general rule, accident compensation has to be claimed within a year from the date of the accident.

withholding tax
The insurance company withholds tax insofar as the compensation for lost earnings is paid to the injured or the survivors pension to the family. Tax is not withheld from compensation which is paid to the employer, the Social Insurance Institution or other pension institution, because tax has already been withheld from their equivalent payment. The employer withholds tax of the sick pay. At the same time, the employer pays also the social security contribution, which later can be amended for the part of the daily allowance payable due to accident. If the employers insurance has a deductible for each accident (EUR 200 in 2009), tax must be withheld for this part of the daily allowance payable. Social security contributions, on the other hand, need not be paid.

medical certicate
A medical certicate is always needed when an injury causes compensable incapacity for work. In obvious cases, the A certicate which is meant for applying for daily allowance from health insurance is sufcient. The employer can submit the A certicate together with the accident report to the insurance company. The handling of the case, however, often requires the E medical certicate which is used in employment accident matters. The insurance company asks for the E certicate directly form the medical care institution where necessary.

Statutory Workers Compensation Insurance

increased compensation
When the payment of the accident compensation is delayed, an increase is paid for each day of the delay period. The increase in compensation is 9,5 % during January 1st June 30th 2009. The period of delay starts when three months have passed from the end of the month in which the insurance company was notied of the grounds and amount of the claim. An increase which is less than the minimum amount is not paid.

appeal
The insurance company can reconsider its decision and change its former decision if it is found to be incorrect. The parties always have a right to appeal against decisions concerning employment accidents. The appeal is free of charge. The rst appeal instance is the Employment Accidents Board. The petition of appeal must be submitted within 30 days from receipt of the decision to the insurance company which made the decision. If the company approves of all the claims entered in the appeal, it alters its decision. If the appeal is not approved of, the company sends the appeal to the Employment Accidents Board. The handling of the appeal in the Employment Accidents Board takes on the average four months. It is possible to appeal against the decision of the Employment Accidents Board to the Insurance Court. The appeal addressed to the Insurance Court is submitted to the insurance company, which forwards the appeal. The period for appeal is thirty days. The proceedings in the Insurance Court take on the average 10 months. It is possible to appeal to the Supreme Court against the decisions of the Insurance Court only in certain, separately prescribed situations. The time period for the petition for leave to appeal and for submitting the appeal is 60 days from receipt of the decision of the Insurance Court.

6.5 legal safety of the recipient of compensation

employment accidents compensation board
The Ministry of Social Affairs and Health has had a list of matters conrmed, on which the insurance company must ask for a statement from the Employment Accidents Compensation Board before making its decision. The Employment Accidents Compensation Board is an organ whose task is to unify and develop the handling of claims concerning employment accidents and occupational diseases. The labour market organisations, the Ministry of Social Affairs and Health as well as the insurance institutions are represented in the Employment Accidents Compensation Board. The Compensation Board is not an appeal instance, but it gives a statement before the insurance company makes a decision on the case in question. The insurance companies adhere to the statements of the Compensation Board almost without exception.

7. Other Obligations of the Employer

7.1 pension cover of the employee and the entrepreneur
The employer is obliged to arrange pension cover for the employees in accordance with the employment pension acts. The nationality of the employee does not affect the obligation to insure. The Entrepreneurs Pension Act (YEL) is applied to private entrepreneurs and self-employed persons. The partners of a general partnership who work in the company, the answerable partners of a limited partnership, and the majority shareholders of a limited company must be insured in accordance with the Entrepreneurs Pension Act. The total pension cover of the employee consists mainly of the employment pension. If the employee does not get any employment pension or if the employment pension is very small, national pension is paid. The amount of the employment pension affects the amount of the national pension. The employment pension is calculated on the basis of the pensions accrued from employment relationships in the private and the public sector as well as from entrepreneurship. One person can receive employment pension in accordance with several employment pension acts. The amount of the pension depends on the amount of salaries, wages or other earned income, on the length of the working period as well as on the annual pension percentage. When working abroad the pension cover is based on the laws of the country in which the person works. From social security agreement countries the pension is paid to Finland on request. These regulations are not applied to employees who are sent abroad on work assignments. For additional information on pension insurance, please contact Varma Mutual Pension Insurance Company, Postal address: P.O. Box 1, FIN-00098 VARMA, Finland Visiting address: Salmisaarenranta 11, Helsinki, Finland Phone number when calling in Finland 010 2440 and for international calls +358 10 2440. Telefax number in Finland 010 244 4752 and internationally +358 10 244 4752.

7.2 other social security

For information on other statutory social security and taxation, please contact the civil service departments and institutions concerned.

If P & C Insurance Company Ltd. Registered domicile Helsinki P.O. Box 4, FI-00025 IF, FINLAND Business ID 1614120-3

58684i 4/2009