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Besides being a legal requirement, there are five other reasons to register with COID

by , 07 January 2015
The Compensation for Occupational Injury and Disease Act (COIDA) says you, as an employer, have to register with the compensation fund.

And you must do this even if you only have one employee.

But this isn't the only reason you should register with COID.

The truth is, there are several benefits that come with registering.

If these benefits don't motivate you to comply with the law, I don't know what will.

Read on to find out what they are...


There are five benefits you'll gain when you register with COID

#1: COID will reimburse you for your employee's medical bills
Let's say your employee has an accident and you have to rush him to hospital. Sadly, he needs an emergency operation but he can't afford to pay for treatment, so you cover the cost of all his medical bills. 
Because you registered with COID, you can claim that expense back. This means you don't lose money.
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Avoid getting your claims denied...
COID statistics show that the fund denies 80% of all claims outright!
For two reasons:
1. The employee either didn't report the claim properly.
2. Or the incident they reported is something the COID Fund doesn't cover.
#2: You don't have to lose money while your employee can't work
When your employee can't work, your company's productivity decreases. This will cost you money. And you may think you'll have to pay your employee while he's on sick leave as well which will cost you even more. But it actually won't cost your company anything.
According to the COID Compliance Guide, in this situation, you have to pay your employee 75% of his normal salary and COID will then reimburse you this money.
This may change if your negligence caused the accident. In this case, the Compensation Commissioner might make you pay your employee more compensation 
#3: It stops your employees from suing you for workplace accidents
Because COID works like a national workers insurance, it stops employees from claiming damages from you. Otherwise, your employee could get double the amount of compensation for the same accident. 
Just be careful though because COID doesn't stop third parties from suing you. For example, if an outside consultant comes into your workplace and has an accident, he can sue your company.
#4: You can get money back from COID if you have a low accident rate
Every year, you have to pay COID a tariff. This is essentially your contribution to the fund so it can give employees compensation. 
But if your accident rate is lower than the rest of your industry, you can get a rebate from COID. This means while everyone else in your industry has to pay high tariffs, running a safe workplace means you'll pay a lot less. 
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Do you want to be fined, jailed or have a criminal record for life?
If an accident occurs in your workplace, and the person dies, you could be charged with culpable homicide, charged penalties of R100 000 or 2 years in jail! The CEO or Owner of a company is personally accountable for health and safety at work. 
#5: It makes sure your employees come back to work quickly
If your employees can get the treatment they need and get back to work without worrying about money, it means your company can work productively. 
This helps you generate more profit and grow your company. That's difficult to do if your employees are off from work after serious accidents. 
As you can see, COID is so much more than just a legal obligation. It's the best way to ensure your employees and your company thrive.  For everything you need to know about COID, check out the COID Compliance Guide and this special infographic

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Besides being a legal requirement, there are five other reasons to register with COID
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