An Investigation of Work-Related Accidents and Its Effects on the Costs of Social Security Organization over the Period of 2012-2016

Background: Millions of people around the world suffer from occupational accidents each year, many of whom become disabled or die. The purpose of this research was to study work-related accidents and its effects on the costs incurred by Social Security Organization (SSO) of Iran during the years 2012-2016. Methods: This comparative-descriptive study examined the insurance and medical costs of approximately 96,000 occupational accidents registered in the SSO systems over the period of 2012- 16. Data were collected through statistical forms and Medical Commissions Comprehensive System, as well as the data recorded in the SSO systems. The collected data were analyzed using descriptive statistics, Excel software, and SPSS 22. Pearson correlation test was used to investigate the relationship between work-related accidents and the research variables (short-term and long-term medical costs and lost working years). Results: Findings indicated that an average of 115 people (0.59%) die each year from work-related accidents. Occupational accidents also lead to total disability of 176 people (0.91%) and partial disability of 292 people (1.5%) per year. About 5% of the victims (998 people) receive lump sum payments as compensation for permanent impairment and 92% (17665 people) fully recover from job injuries. Work-related accidents impose an average financial burden of about IIR 147 billion annually on SSO as short-term costs, about IIR 247 billion as inpatient and outpatient treatment costs, and about IIR 497 billion as long-term costs. Overall, the average total annual expenditure incurred by the organization as the short- term, long-term, and medical costs is over 890 billion IIR. Conclusion: The occurrence of work-related accidents has an incremental effect on the short- and long-term costs of the SSO and imposes considerable costs on the organization annually (more than IIR 890 billion). Given the ever-increasing number of insured individuals in the organization, if there is no solution, these accidents will lead to lower insurance premiums by the insured people and increase the length of death and disability support pensions (longterm support) and short-term costs of the organization. According to the research findings, there is a need to enforce the existing social security laws in order to persuade the employers to modernize industries and develop training programs for workers.