RMI Worker’s Compensation Program to finally kick-off on October 1, 2023

To give employers, workers, insurance companies and other stake-holders ample time to understand the program and allow MISSA to design its structure and establish its systems and procedures, its implementation was deferred by the Cabinet until September 2021.

Considering the scope of MISSA’s responsibility as its administrator and the current COVID-19 situation worldwide, the Administration requested that it be given at least one year to come up with a compensation program that would address several areas of concern that were not clarified to MISSA when the law was passed. Consequently, the Cabinet postponed again its implementation date to September 30, 2022.  During this period the Australian Government funded an Adviser to assist the Task Force in it s implementation.  After International search, Mr Adrian Nippress commenced the role as Adviser in late July 2022.

The main highlights of the workers’ compensation program:

• It requires private employers to secure payment with insurance carriers, while Government Workers will have the RMI Government Self-Insurance Fund which will be established to secure public employees workers’ compensation. Government workers shall include employees appointed by the Public Service Commission, Public Schools System and may in the future include employees of public corporations and state-owned enterprise (SOE), elected officials of both the national and local governments, local government agencies whose operations are being funded in full by the RMI Government and subject to audit under the supervision of the National Government.
• Coverage
  1. Death benefits of $1,200 for funeral expenses and $40,000 for workers who were fatally injured during the performance of their work.
  2. Disability (temporary and permanent) benefits due to injuries while at work.
  3. Medical/hospitalization benefits arising from injuries/accidents during work.
  4. Maximum coverage for disability wages is $40,000 per claim
• MISSA was appointed by the Cabinet to Administer the Workers’ Compensation program and the MISSA Board shall become the Workers’ Compensation Board.

Based on the recommendations of the Task Force, following extensive consultation with RMI employers and the community, Bill 95ND1 was introduced to the Nitijela in January 2023 to amend the RMI Workers’ Compensation Act 2019:

1. The following individuals may be exempted from the Workers’ Compensation Program:
   1. Marshallese workers in the U.S. Army Garrison-Kwajalein Atoll (USAG-KA) who opted to be covered under the Defense Base Act;
   2. Non-resident consultants working in or on behalf of the RMI;
   3. Non-resident or Marshallese workers who are not already covered and whose projects or job assignments are carried outside of the RMI (mostly constructions workers who are employed by local companies), other than RMI Government workers in RMI embassies, consulates, and other Government Offices overseas;
   4. Non-resident members of foreign or international diplomatic Corps who are assigned in the RMI, excluding Marshallese employees;
   5. Non-resident employees of regional or international organizations;
   6. Self-employed workers regardless of nationality who opted not to be covered and who have submitted a valid exemption to the Workers’ Compensation Administrator (MISSA Administrator);
   7. Local students under practicum training and interns; and
   8. Non-resident or local volunteers, or church missionaries
2. An injury to an employee which arises out of or in the course of the employee’s employment may not be covered where the employee is on a journey between the employee’s home and place of employment, unless such injury results from the employee travelling as part of an approved travel arrangement.
3. Small businesses whose annual gross revenue is not more than $25,000 may seek an exemption from the Administrator of MISSA to avoid purchasing insurance and provide coverage from their own funds;
4. The Workers’ Compensation Board may consider, authorize and revoke applications from non-government employers to establish their own self-insurance fund sufficient to secure compensation and reimbursement payments in respect of all their employees, subject to the following considerations:
   • Whether the employer is able to meet its financial liabilities and can manager financial transactions necessary to make timely payments of compensation and reimbursements as required by the Act.
   • Establishing resources to manage claims and rehabilitate injured workers
   • Demonstrating good employment and safety practices in their workplaces.