INTRODUCTION
The term ‘accident’ has been given many definitions over the years; it has been described as an unplanned event which causes, or has the potential to cause injury, or loss, or damage to plant, premises and material”.
ACCIDENT COST
Accidents cost industry a great deal of money each year. These costs and the arguments for preventing accidents can be viewed from three different perspectives:
MORAL OR HUMANITARIAN
ECONOMIC
LEGAL
1. Moral
The moral or humanitarian reason for preventing accidents and, therefore, the costs are based on the principle that it is wrong to cause injury to a fellow human being by allowing dangerous environments or activities to exist. Some of the costs to victims are:
Pain and suffering
Loss of earnings
Extra expenditure
Continued disability
Possible loss of life or life shortening
Incapacity for some work
Effects on dependents
Effects on outside activities
2. Economic
This aspect is largely a financial consideration for the employer though there are also considerations affecting the individual, for example, continued disability and its effect on earning potential.
The following are some of the considerations of uninsured (hidden) economic costs:
Cost of time of injured person
Cost of time of other workers who stop work out of curiosity
Cost of time of other workers who stop work to assist
Cost of time of supervisor or other executives in arranging for the injured person’s job to be continued
Cost of selecting and training a replacement
Cost of time of all those involved in investigating the accident (investigators and witnesses)
Cost of time and stress of supervisor or others in preparation of accident reports and in attendance at court cases
Cost of medical services to the injured person
Cost of repair/replacement of damaged property, plant
Cost of loss production
Cost of overtime catch up
Cost of liaison with outside bodies, ie. OHS Inspectors, Solicitors, Insurers, Consultants
3. LEGAL
These costs are mainly related to penalties involving fines and add to the economic arguments. Additional one should consider the affects of adverse publicity and the possible loss of orders. Personal convictions and the resulting criminal record may also affect the economic well being of the individual.
The imposition of enforcement notices is another aspect of the legal argument to be considered, again with far reaching consequences.
Other legal losses may result from civil claims and uninsured court costs.