The variation of occupational injury cost in Australia; estimates based on a small empirical study

Abstract

In order to asses the ‘direct’ and ‘indirect’ costs associated with occupational injury in Australia, a sample of accidents were investigated with the help of in-depth interviews with victims, supervisors and managers in a number of small, medium-size and large industries in Victoria, Australia. The average cost for minor (≤7 days lost) and major (>7 days lost) injuries was assessed, and the distribution between the injured individual, the production system and the compensation system in terms of meeting these costs was shown to vary considerably between the different Australian jurisdictions and workers' compensation systems. Substantial underreporting of occupational injury, especially from small business, was indicated. Much unpriced time was spent by injury victims and families as a consequence of the injury. A large proportion of the cost associated with occupational injury in Australia was paid by the injured individual.