Andreas Stylianou was speaking at the 40th Speaking of the insurance industry in
annual general meeting of the association general, Stylianou said that in 2017 the
and slammed “the problematic attitude” of number of new policies overall rose by 6.4
the labour ministry when it came to “the per cent, worth €813m, compared with
vital issue” of implementing the law on €764m worth of new policies in 2016. Within
compulsory insurance for employers. that figure the number of life insurance
policies taken out rose 7.8 per cent in 2017.
“It’s a fact that for decades victims who have Insurance companies paid out a total of €486
been seriously injured in industrial accidents million in claims last year.
for which uninsured employers have
responsibility, have suffered. Victims remain Stylianou said that despite a difficult
without compensation, with huge economic economic climate, insurance industry
and social consequences for themselves and investments exceed €2.5 billion and have
their families,” said Stylianou. returned to pre-crisis levels.
“And I am not referring to isolated incidents,
nor cases of minor injuries. I am referring to “Insurance companies remain one of the
accidents that leave victims with severe most important institutional investors
disabilities and their uninsured employers contributing significantly to the wider
have no financial means to pay them the economy,” he said.
damages awarded by the courts,” he added.
Reaction:
At the same time, he said, a legally I feel sorry for the victims of industrial
mandated creation of a worker accidents who have been left for decades
compensation fund has been pending for the without compensation because their
past 21 years since it would be rendered employers are uninsured. Unfortunately, t
insolvent from the onset because of the
large number of uninsured employers.
The FINANCIAL -- The world runs on Following the Deepwater Horizon accident,
hydrocarbons. But the impacts of oil the European Commission launched an
production are significant and accidents like assessment of safety in offshore oil and gas
the explosion of the Deepwater Horizon exploration as well as production activities in
drilling rig in the Gulf of Mexico in April 2010 European waters. The investigation
are a reminder of its potential dangers. concluded that while a number of best
practices already existed in European Union
Yet economies still need the black gold and (EU) member states in relation to safety,
countries with meaningful reserves cannot preparedness and response, the divergent
afford not to exploit their natural resources. and fragmented regulatory framework,
Viable domestic production not only helps along with current industry safety practices,
the trade balance but it is also an important did not provide adequate protection from
contributor to energy independence. risks of offshore accidents. Other findings
pointed out that countries’ different safety
For many years, Greece has based its energy regimes can complicate the understanding
supply mostly on imports of its oil and gas and management of risks, increase costs and
needs. Domestic production of natural slow down the response time in the event of
resources was limited to lignite (sometimes accidents with trans-boundary effects.
known as ‘brown coal’) with only limited
offshore oil production, suffering from years These conclusions are all the more relevant
of underinvestment. However, since 2012 in light of the transformation of the
Greece has taken steps to stimulate European oil and gas industry in response to
exploration efforts and revive its energy the progressive depletion of "easy”
industry. While some companies have reservoirs. Exploration is moving towards
recently shown more interest in exploration more complex environments characterised
(such as Repsol), the Greek company by high pressure/high temperature
Energean is the only domestic producer at reservoirs, deeper waters and/or extreme
present. climate conditions that may complicate the
control of subsea installations and incident
The EBRD has identified energy as one of its response.
core activities in Greece. In addition to
supporting green energy with a €300 million At the same time, production facilities in
renewables framework, the Bank has also maturing fields are ageing and often taken
provided a US$ 90 million loan to Energean over by specialist operators with smaller
for the development of the company’s capital bases. The study concluded that
assets. This loan has now been while risks could not be totally eliminated in
complemented with a technical assistance the offshore hydrocarbon industry, the
programme for the implementation of new safety and integrity of operations and
regulations to strengthen the safety of oil assurances of maximum protection of
protection and increase the protection of people and the environment needed to be
guaranteed.
energy in Athens in the presence of EBRD
Following this examination, the European Managing Director for central and south-
Parliament issued the European Offshore eastern Europe, Charlotte Ruhe and EBRD
Safety Directive (Directive 2013/30/EU) in Regional Director for Greece and Cyprus,
2013. It aims to reduce, as far as possible, Sabina Dziurman. Ben Oudman, Regional
major accidents relating to offshore oil and Manager for DNV, said: “I am sure that this
gas operations and to limit their will be a positive step in Greece to maintain
consequences; increase the protection of a good record in major hazard management
the marine environment and coastal offshore.”
economies against pollution; establish
minimum conditions for safe offshore The development of this guidance allows
exploration and exploitation of oil and gas; existing and new entrants to the Greek oil
and to improve the response mechanisms in and gas industry offshore to be certain of a
case of an accident. robust and well-formed regulatory regime.
To further promote road safety, the A WHO study says that speed is the most
Department of Transportation (DOTr), significant contributor to road crash
together with the Department of Interior fatalities. It was found to increases both the
and Local Government (DILG), and the risk of a crash happening, and the severity of
Department of Public Works and Highways injuries. According to the WHO, a 1km/h
(DPWH), launched Joint Memorandum increase in one’s speed increases the risk of
Circular (JMC) 2018-001 on the classification injury by at least 3% and the risk of a fatality
of roads for setting speed limits. by 4-5%. Furthermore, studies have shown
that speed is the primary cause in 30% of
JMC 2018-001 will be providing guidelines on fatal road crashes.
setting speed limits and create coordination
mechanisms for the setting of speed limits The DOTr has also partnered with the World
on national roads. It will help the national Bank to develop a system for road crash data
government coordinate with local collection called Data for Road Incident
government units (LGUs) to work together in Visualization Evaluation and Reporting
enforcing speed limits by classifying the (DRIVER) system. It is a web application that
roads and in order to create a set speed limit. is designed to view, collect, and analyze road
It also clarifies the juridsitciton of LGUs over incident data in the Philippines, particularly
national roads, allowing them to lower traffic incidents, disruptions, and crimes.
speed limits when needed, subject to DOTr
and DPWH approval. The application provides data viewing and
entry tools such as graph and map
It was initially created to strengthen the interfaces, custom report and filter tools,
implementation of Republic Act 4136; multiple concurrent user editing, and data
specifically Sections 35 which states that exports. Apart from gathering data, it will
motorists driving on a highway shall do so at also allow for better allocation of resources
a “careful and prudent speed” so as not to as it comes with data visualization tools.
“endanger the life, limb, and property of any
person.” Furthermore, it states that no
person shall drive at a speed greater than
what is allowed, reasonable, and will permit
him to bring the vehicle to a stop within the
assured clear distance ahead.
Figures from the Department of Labor and Currently, OSHS provisions are integrated
Employment (DOLE) show that between into the Labor Code of the Philippines, which
January 2014 and October 2016, there have does not declare violations as unlawful nor
been 199 fatal workplace accidents and 232 bound for a penalty. The stiffest sanction
non-fatal ones. they face is a work stoppage order issued by
the DOLE.
Other incidents include:
Meanwhile, Matula said that other orders
May 2017 - Yokohama Tire Philippines have “archaic provisions,” with maximum
factory fire (no casualty) fines of only P10,000.
February 2017 - 5 employees died, House
Technology Industry (HTI) factory fire in A measure has been pending for second
Cavite reading in the Senate, seeking to impose a
November 2016 - two children killed, 5 P100,000 penalty on a company for each day
injured in a factory that exploded in Bulacan of non-correction of an OSHS violation.
May 2015 - 72 workers killed in the Kentex
factory fire in Valenzuela City Senate Bill 1317, filed by Senator Joel
July 2015 - 9 workers buried alive in the Villanueva in the aftermath of the HTI
collapse of Semirara Mining Corporation’s tragedy, also seeks a P250,000 to P500,000
open pit coal mine in Caluya, Antique fine on a company in the event of a worker’s
July 2012 - 18 workers died in a fire in a death.
building in Butuan City
January 2011 - 10 construction workers were Villanueva earlier called for an urgent
killed in a construction site in Makati City passage of the measure following the NCCC
after the collapse of a service elevator Mall fire.
Safer workplace bill
The FFW, on the other hand, proposes that
“These numbers show the poor state of the fine to be collected from the employers
compliance with the Occupational Safety be used for the operation of OSH initiatives,
and Health Standards (OSHS). Despite the such as training, education, and other OSH-
fact that workplace accidents would always related programs.
DOLE probe
The bill was authored and sponsored by According to a Philippine Statistics Authority
Senator Joel Villanueva, chair of the Senate (PSA) study released in October 2015,
Committee on Labor, Employment and occupational diseases in establishments
Human Resources Development. employing 20 or more workers doubled from
85,583 in 2011 to 171, 787 in 2013.
Villanueva said that by ensuring maximum
safety and health at work, the bill would help
increase productivity in workplaces, and The Department of Labor and Employment
“businesses will be more successful and (DOLE) also reported 199 fatal workplace
sustainable.” accidents and 232 non-fatal accidents from
January 2014 to October 2016.
“The passage of this measure is important
because the very lives and welfare of our Villanueva said that the numbers showed
workers are at stake,” Villanueva said in a poor compliance of employers with the OSH
statement. standards.
Villanueva said the bill amends the 41 year “Despite the fact that workplace accidents
old Labor Code and imposes administrative would always prompt tighter regulations,
penalties to employers who will not comply compliance by all industries continues to be
with requirements set under the OSHS. an issue,” he added.
Under the proposed measure, any erring “Let us now make safety and health in the
employer would be served a fine of up to workplace work for all,” Villanueva said. /je
P100,000 “as an administrative penalty for
every day of non-correction of violation.”
On the morning of March 15, 2018, a large What are the insurance implications?
explosion erupted at the Tri-Chem Industries
chemical plant in Cresson, Texas, Unfortunately, hazardous chemical incidents
approximately 25 miles southwest of Fort are not uncommon. Texas, as well as other
Worth. The explosion left two workers badly states, have suffered a series of chemical
injured and another presumed dead. plant explosions in the last decade. From
According to 2017 Hood County records of 2004 to 2013, more than 1,500 incidents of
the company’s chemical inventory, it has chemical releases or explosions were
been reported that Tri-Chem’s Cresson plant reported.
stored chemicals that were toxic, flammable
and corrosive yet the company had no As the frequency of chemical plant
emergency response plans in its files. explosions increases, it is likely that more
insureds will look to the insurance
Ironically, the Tri-Chem plant explosion marketplace for coverage. This could take
occurred just one day before the D.C. Circuit several forms. Companies that own the
Court heard arguments in a case challenging chemical plants might attempt to seek
the Environmental Protection Agency’s coverage for their property damage under
decision to delay major chemical plant safety their environmental insurance policies.
regulations implemented under the Obama Emergency workers, neighboring residents,
administration. The regulations at the or company employees could also try to seek
center of that litigation were designed to coverage for their injuries and losses. Claims
prevent and mitigate chemical accidents and against a chemical plant could include claims
strengthen emergency protocols for that the company improperly stored or
chemical plants. In that lawsuit, the United handled dangerous chemicals or that the
Steelworkers, the Sierra Club and other company failed to create adequate safety
environmental groups sued the EPA, procedures. A company whose negligence
claiming that the EPA’s delay of the rule was the cause of a chemical plant explosion
violated the Clean Air Act. and resulting injuries may be liable to
emergency and medical first responders,
Industry groups opposing chemical risk neighboring residents and community
management rules have argued that the members who were injured or became ill
regulation’s requirements are overly broad from chemical exposure, as well as
and could result in disclosure of sensitive employees and contractors injured at the
information to criminal and/or terrorist facility. Insurance carriers can work with
groups. The chemical plant safety their insureds to educate them about
regulations at issue in the case are only one prevention and the importance of having
set of environmental regulations where the emergency protocols in place in the event an
current EPA has sought to roll back the prior accident does occur.
administration’s push. Environmental
The relaxation of regulation by the EPA or
other governmental agencies may also lead
to the implementation of protective
safeguards in insurance policies to minimize
the risk of incident. Insurers may wish to
adopt a listing of regulation-like terms that
would be preconditions to affording
coverage. For instance, insurers may take
the position that where the insured – a
chemical plant – does not have an
emergency response plan or proper
equipment on hand for such a response, the
insured’s negligence in maintaining such
items would be a basis for limiting coverage
and/or for the outright barring of indemnity
recovery or defense in the event of a third-
party action.
The result: in the last 20 or so years, OSHA The Trump administration’s regulatory
has issued new regulations for only three agenda is better characterized as a de-
chemicals. regulatory agenda. What it sees as cutting
red tape is actually cutting important and
hard-fought protections.