I.N.S. WORKERS’ COMPENSATION

This is an extract. Please read the entire policy to get the full picture. Following are the coverages available. Within certain rules, you can select the coverages you need and pay for the ones you get.

Extract

BACKGROUND. Costa Rican labour law says employers must protect their employees with (1) Social Security (“La Caja”), which covers sickness, pregnancy, and non work-related accidents for the employee and his/her dependents, and (2) Workers’ Compensation, which covers work-related accidents. If an employer fails to protect his employees, he is responsible for any events which otherwise would have been covered.

Workers’ Compensation is paid for by the employer, and coverage is provided by INS. It comes in two forms: “normal” Workers’ Compensation (Riesgos del Trabajo, or RT), and Domestic Workers’ Compensation (Riesgos del Trabajo - Hogar, or RTH), which is a special cheaper version where the red tape is less.

“NORMAL” WORKERS’ COMPENSATION. (RT)  To obtain coverage, the employer must sign an application, and provide a copy of his ID. If the employer is a corporation, INS also requires a copy of the “cédula juridica” and of the signer’s power-of-attorney (“personería.) Also needed: the employees’ names, ID numbers, rates of wages, and job descriptions (one word: e.g. guard, clerk, electrician, etc.). INS will determine, according to the perceived risk, what percentage of the payroll must be paid – it is usually around 2-3% of payroll per year, paid in advance, normally by month. The employer must inform INS of hirings, firings, and relevant personnel information, and send INS a payroll report on a monthly basis. It is best for employers to make arrangements to submit reports by Email – ask your insurance agent for guidance.

DOMESTIC WORKERS’ COMPENSATION. (RTH)  INS provides two standard policy options. If your domestic arrangements do not conform to either, you should buy a “normal” Workers’ Compensation policy. The RTH policy can cover foreign workers, whether or not they are legal immigrants. The options are:

1. One full-time domestic employee (maid, servant, cook, housekeeper, etc. – but not a guard, gardener or driver), plus (optionally) one other person (gardener, odd-job person, etc.) for up to 3 days per month. Yearly cost, C.46,113
2. Two full-time domestic employees, plus (optionally) one other person for up to 3 days per month. Yearly cost: C.81,223

To obtain coverage, the employer must sign an application form, provide a copy of his/her ID, and the full-time employees’ name(s) and ID number(s). Data of the part-time person is not needed. If you change employee(s), INS must be advised by means of a letter, with the name(s) and ID number(s) of the incumbent(s). The cover becomes effective when the premium is paid.

ACCIDENTS. A form “Orden de Atención Médica” must be completed and signed by the employer. If the accident is serious, call 911 for an ambulance. If not serious, send the employee (with the form) to the nearest INS clinic.

Rev.01/10