You are on page 1of 10

Hidden Costs of Accidents

Hidden Costs of Accidents Guide in Spanish

Safety Posters Library
An area of major concern to employers is the cost of accidents. Many people do not
realize how much accidents really cost. In fact, many expenses are not always obvious.
Attention to loss control can improve a companys overall success.
Where does the money come from to pay for the results of accidents? Some people
believe that organizations have money set aside to pay for accident costs. However,
employers know that the money must come from profits.
A series of costly accidents can reduce profits radically. Accidents have obvious, direct
costs such as medical, hospital and rehabilitation expenses, workers compensation
payments, and higher insurance premiums or even loss of insurability. But, accidents
have less obvious, indirect costs that are usually uninsured. These include the various
disruptions to normal work procedures, such as when employees stop to help the
injured employee, or even a drop
in production that cause inconsistencies with delivery. If profits are not sufficient to cover
costs, the company may be forced to defer the procurement of new equipment and
People often try to minimize the costs of accidents by saying that they are covered by
insurance. Insurance, however, covers only a portion of the total accident cost.
Moreover, as accident losses increase, so will a companys insurance premiums. It is
clear that directly and indirectly, accidents reduce profitability.
Total accident costs can be compared to an iceberg (Figure 1). The part of the iceberg
that can be seen above the surface is like the smaller, direct portion of the total accident
costs. An examination of a serious accident can give you a better understanding of what
makes up total accident costs.

For example, an employee receives an electric shock from faulty equipment and is
seriously injured. Many people in the department stop working. Some rush to give first
aid to the injured person, while others call for help. When help arrives for the injured
employee, do employees immediately return to work? Not always. They may continue to
help or remain merely to watch. In this situation, all idle work time is included as part of
the total accident costs.
As soon as the injured person receives proper medical treatment, your next job is to
investigate the accident. All time spent on accident investigation and reporting as well
as wages paid to witnesses is included in the total accident costs.
If the injured person misses work for only a short time, you may be able to make up for
the production loss by having the rest of the department work overtime. Overtime wages
paid are included as total accident costs. If the injured employee is gone for months,
you may have to hire and train a replacement worker. Typically new employees are less
efficient for a period. Damaged machinery may also reduce production as you must
make do with alternative
equipment while replacements or repairs are complete. All this reduced efficiency
represents another indirect cost.
The indirect costs of accidents are usually greater than the direct costs. A conservative
estimate of losses for every $1 of direct accident costs, there is $3 of indirect costs.
Some studies indicate the hidden costs can be 4 to 10 times the insured costs. Indirect
costs to consider include:
Time lost from work by injured employee(s).
Loss in earning power.
Economic loss to injured workers family.
Lost time by fellow employees.

Loss of efficiency due to break-up of crew.

Lost time by supervision.
Cost of training a new worker.
Damage to tools, equipment, and other property.
Time lost for replacing damaged equipment.
Spoiled work.
Loss of production.
Spoilage - fire, water, chemical, explosives, etc.
Failure to fill orders.
Overhead cost (while work was disrupted).
Like an iceberg, the hidden costs of accidents are not visible on the surface, but are still
present. Examples of such hidden costs:
Production loss/worker distraction
Training costs/replacement worker
Loss of skill/efficiency - slowed production
Administrative time
Loss of morale
Legal issues
Medical expenses
Workers compensation premium
Just as there are many hidden costs due to accidents, there are hidden savings in
accident prevention. For this reason, the phrase loss control is often used in safety
management. Every accident you prevent saves direct and indirect accident costs effecting your bottom line. Other benefits of accident prevention efforts include:
Safe / uninjured employees.
Property and materials will not be damaged.
No disruption to production supervisors/managers can focus efforts on other projects.
Increased employee security at work.
Additional Resources
WCF Safety Department
Ask a Safety Consultant
NOTICE: This guide may make reference to the Occupational Safety and Health
Administration (OSHA) regulations; however the guide is not legal advice as to
compliance with OSHA or other safety laws, codes or regulations. Compliance with
OSHA and other safety laws codes or regulations, and maintaining a safe work
environment for your employees remains your responsibility. WCF does not undertake
to perform the duty of any person to provide for the health or safety of your employees.
WCF does not warrant that your workplace is safe or healthful, or that it complies with
any laws, regulations, codes or standards.


Jawab Semua (30 minit sahaja) 9.00 ~ 9.30am
1) Statement tentang Cost of accident (pilih yang mana salah)
Jelaskan dengan ringkas mengenai teori kos tersembunyi & kos jelas
(Tersurat & Tersirat) dalam Teori Iceberg.
2) Good Safety & Health Policy
- The policy has to be read, understood and acted upon by employees,
supervisors and managers. It must be SMART. Specific and simples,
measureable, achieveable, Reasonable and tractable. Policy must comply
with Industry practices. State clear roles.
3) Effective way to control risk from their workplace hazard
-Idea or info can come from codes of practices, industry or trade association,
specialist, MSDS and other publications including those by manufactures
and suppliers.
Elimination (removing, most effective),
Substitution (replace with less hazardous),
Isolation (separate by barriers and mark),
Engineering Control (modification, guarding),
Administrative control (work practices)
PPE- last resort
Review measures regularly, modify, comply with law, reflect GMP and use
latest OSH.

4) Job Safe Analysis (Untrue statement)

JSA Perlu dilakukan apabila mulanya suatu kerja & kemungkinan hazardhazard yang wujud akibat dari kerja tersebut dan bagaimana melaksanakan

kerja tersebut dengan cara yang selamat & betul

5) Main purpose of accident investigation
o to fulfill the legal requirement
o to determine the cost of an accident / to find the root cause
o to determine compliance with applicable safety regulations
o to process workers compensation claims (e.g. for SOCSOs claim,
insurance, etc.)
6) Untrue about accident method
7) Firt Aiders, equipments, - how to decide
8) Cool Emergency Evacuation Plan
9) Occupational Health Training Statement
10) Near Miss incident situation (Definition)
-An event that does not result in injury or damage to the property but had the
potential to do so and share the same root causes with accident. It is only
chance that no harm or damage occurred and require the similar attention as
11) As far as practicable statement
-regard to severity, risk, state of knowledge, availability, suitability, cost and
12) Untrue statement (DOSH Officer cannot send NOI and fine to person)
13) Objectives OSHA (False) to protect ALL PERSONS including person at
work (Mark ALL persons)
14) Main purpose of SH officers
-to advise management in implementing OSHA in the workplace
-be a secretary to OSH committee
-conduct accident investigation

-to inspect the place of work to determine whether any machinery, plant,
equipment, substance, appliance or process is of such nature liable to cause
bodily injured to any person working in the workplace.
15) Dissemination of Safety & Health matters
-coaching and instructing, meeting and committees, toolbox meeting, non
verbal passive communications, Hazard communications.
16) General Duties of employees on OSH
- It is general duties of employers to ensure, as far as is practicable, the
safety, health and welfare at work of all his employees as stated under
Section 15 of OSHA Act 1994 and failure or contravenes to such provisions
shall be guilty of an offence and shall, on conviction, be liable to a fine not
exceeding fifty thousand ringgit or to imprisonment for a term not exceeding
two years or to both.
17) SH committee statement
-assist in the development of OSH rules and systems of work
-review effectiveness of OSH programme
-carry out studies on the trend of accident, near miss, DO, OP, OD which
occur at workplace and shall report to the employer of any unsafe or unhealthy
condition with recommendation to corrective
-review OSH policies make recommendation.
18) Cool Which machine does not have FC
19) Other name of ABC Fire Extinguisher (Dry Powder)
20) Accidents statement under SOCSO Claim (family day accident)
SOALAN PAPER 1 Bahagian 2 (27/2)
1. (a) definisi kemalangan pekerjaan & definisi penyiasatan kemalangan

-Accident investigation is a management by which work related injury, ill
health disease and incident are systematically studied so that the root cause
and contributing factors can be identified and the organization Occupational
safety and health management systems can be continually improved.
(b) 3 peringkat dalampenyiasatn kemalangan (15m)
a) gather information (people, positions, parts and papers)
b) Findings ( unsafe act and condition, determine cause, root cause,
corrective action and recommendation)
c) Report
2. OSH Committee.
(a) majikan mengadakn cara utk membolehkan pekerja buat aduan. apakah
Cara tersebut. (6m).

-Representatives, to report dangerous occurence at workplace.

(b) sekiranya majikan x dpt ambil tindakan, apakah langkah y boleh
dilakukan oleh
pekerja (6m)
-have the right to not working to avoid hazard at workplace.
(c) sekiranya JKK x bsetuju dgn sebab y dberi oleh majikan, apakah langkah
y perlu dambil oleh JKK (8m)
3. situation -soalan sama
4. (a) pengukuran pencapaian - terangkan proaktif (6m), reaktif (6m)
(b) 4 cth setiap jenis pengukuran (8m)

5. (a) 4 kewajipan SHO (8 m)

-monthly report
-investigation report
(b) 6 perkara y harus ada dalam laporan bulanan (12m)
-Action to be taken by employer in order to comply with the requirement of
the Act.
-Methods of establishing and maintaining safe and healthy working
condition in workplace.
-Number and types of accident, near-miss accidents, dangerous occurrences,
occupational poisioning or occupational diseases which have occurred at the
workplace including the number of persons injured.
-Any machinery, plant and processes that may cause harm.
-Recommendation for any alterations or improvement to be made to the
structure or layout of the workplace for the purpose of minimizing risks.
-Any works/activities related to safety and health which has been carried
6.(a) kewajipan am majikan & orang bekerja sendiri (12m)
-It is general duties of employer to ensure, as far as is practicable, the safety,
health and welfare at the workplace of his employees.
(b) type of notification should be reported to DOSH (8m)
-Notification of accident, dangerous occurrence, occupational poisioning and
occupational disease.
Concept/principles of Risk Assessment.
-Integrate risk management as part of planning at all levels of business

-Accept no unnecessary risk

-Make decision appropriately
-Accept risk when benefit outweight costs.
-manage the risk
b. RAM (risk assessment matrix)
-better visualization and understanding. Tabulated hazards, likelihood and
a. Definisi hazard.
-A source or situation with a potential harm in terms of human injury or ill-health,
damage to the property, damage to
environment or combination of these.
b. Definisi risiko
-A combination of the likelihood of an occurrence of a hazardous accident
event with specified period or in specified circumstances and the severity of
injury or damage to the health of people, property, environment or any
comb inations of these caused by the event.
c. Definisi bahaya
-Relative exposure to hazard.
d. Beza risiko, bahaya dan hazad
hw to identify the risk assessment for the activities.
-classify activities (work,product,services,activities)
-identify hazards
-determine risks
-decide if risk is tolerable, decide if impac t is significant
-risk control action plan
-review adequacy of risk control

Adakah section ni yang dikatakan? sec15,16,20,30,31&66

Sect 15- -It is general duties of employer to ensure, as far as is practicable,
the safety, ealth and welfare at the workplace of his employees.
Cubalah hafal OSHA 1994 seksyen 15 keseluruhan, seksyen ini boleh
dikaitkan dengan banyak perkara dan skopnya terlalu besar.
Selain tu, hafal regulation dan tahun yang sedia ada....NADOOPOD 2004 , SHO 1997,
SHC 1996, USECHH 2000,
CPL 1997, CIMAH 1996 etc.
Bila menjawab kaitkan dengan perundangan, ini menunjukkan calon tersebut
memahami soalan yang dijawab.