Bangladesh: Pact to develop workmen injury insurance cover
Source: Asia Insurance Review | Nov 2015
The Bangladesh government has taken a further step towards developing an Employment Injury Insurance (EII) Scheme for the ready-made garment (RMG) sector in the country. It signed a letter of intent on 6 October with the International Labour Organization (ILO) and Germany to collaborate in this.
In a press release, the ILO said that in the initial stages, the three signatories will work together on the design of a suitable EII scheme for the RMG sector. Legislative issues will be addressed and national institutional capacities to implement such a scheme developed. In later stages, a pilot scheme will be launched before being scaled up to run nationwide and extended to other industrial sectors.
EII will benefit millions of lives and support business
Bangladesh’s Labour and Employment Secretary Mikail Shipar, said: “By joining hands with the ILO and Germany, our goal is to develop an Employment Injury Insurance Scheme that will benefit the lives of millions, support business and enhance the reputation of our industry worldwide.”
Under an EII scheme, workers will receive payment in case of injury while employers will benefit from low-cost and no-fault accident compensation insurance for workers under such a plan.
The Rana Plaza tragedy in 2013 – the garment industry’s worst ever disaster – highlighted the need for an EII scheme died to be established. In the tragedy, more than 1,130 people and at least 2,500 others were injured when the eight-storey Rana Plaza, which housed garment workshops, collapsed due to structural failure.