Professional Documents
Culture Documents
US Operations
2005 DBA/USACE Review
International
– U.S. Operations
USL&H - DBA Business
December 9, 2005
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CNA International –
US Operations
2005 DBA/USACE Review
DBA Definition
The U.S. Government requires that U.S. and foreign national
employees hired by contractors and subcontractors to work on
international government contracts be protected by Defense Base Act
(DBA) coverage, regardless of their assignment and/or location.
DBA Definition
History of Act:
• Passed August 16, 1941
• Originally intended to cover WC for persons employed at military installations
outside the United states
• Subsequently amended over the years to provide cover for employee working
outside the United States on a government contract
• Covers all employees regardless of nationality and includes all sub-contractors
• Can apply for and receive waivers for certain foreign nationals
– Department of Labor has sole jurisdiction
– Must provide alternate cover equal to act (no war exclusion)
– Will never waive for U.S. Nationals, U.S. legal residents (green cards) or
employees physically hired in the U.S.
• Benefits follow those of USL&H
• Cannot charge for War Hazard
– Government self - insures
• Limited numbers of companies write cover
• Open rating
• Under some circumstances a special license may be required from OFAC
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CNA International –
US Operations
2005 DBA/USACE Review
DBA - Background
DBA claims are reported to the Dept. of Labor, but do not get
reimbursed to us unless they qualify as war hazard claims.
DBA - Background
War Hazards Compensation Act
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CNA International –
US Operations
2005 DBA/USACE Review
DBA - Background
Special provisions:
• A waiver of this cover for local and third country nationals is available upon
application to the Department of Labor. Such waivers are routinely granted
subject to the following:
–1. No waiver is granted for U.S. citizens, no matter where hired.
–2. No waiver is granted for U.S. legal residents (green card holders), no
matter where hired.
–3. No waiver is granted for anyone of any nationality who is physically hired
in the United States.
• When waivers are granted, they are always subject to the proviso that the
contractor provides a WC programs with benefits equal to local laws. In the
case of Iraq and Afghanistan, since no local laws exist, locals are subject to
DBA provisions. Since benefits are keyed to actual wages, rates for locals of
these countries are usually lower than charged for U.S. citizens. There are also
special provisions for handling claims involving locals and Third Country
Nationals. These provisions are favorable to the insuring company and allow
for special settlement procedures.
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CNA International –
US Operations
2005 DBA/USACE Review