The main principle for determining the premiums for the statutory accident insurance is that the premiums are in proportion to the risk for accidents and ocupational diseases.
The premiums are calculated on the basis of the salaries paid to the employees and the risk of accident and occupational disease in the insured work. Each insurance company stipulates its´ own calculation base for the insurance premiums in accordance with the Workers' Compensation Act. The premium base must be applied equally to all policyholders.
THE STRUCTURE OF THE INSURANCE PREMIUM
The part of the premium that is intended to cover the insurance compensations (risk premium) is based on accident statistics for the previous years.
For small employers the risk premium is based on collective, national occupational accident statistics (tariff premium). This means that the employer´s own compensation cost does not affect the insurance premium. Different types of work are divided into different risk categories. A premium coefficient which correlates to the accident risk is determined annually for each category. Therefore, the premium is higher for example for construction work than for administrative work, because accident statistics show that the risk is higher in construction work.
For larger employers the risk premium can be set as a special rate policy (special premium). The premium is defined specifically for each customer, and the premium is affected by the employer´s own accident statistics to a certain extent. In this way, an employer who by promoting occupational safety is able to reduce the number of accidents and the compensation costs can also reduce the insurance premium. Special premium systems that are based entirely on the customers own accident statistics are exposed to noticeable annual fluctuation of the premium levels, whereas the premium is more constant over time in special premium systems that are based only partially on the customers own accident statistics.
The total insurance premium for the client is formed by adding the management costs and the statutory extra charges to the above mentioned risk premium. The purpose of the statutory extra charges is to finance certain costs which are jointly distributed within the statutory accident insurance system, for example the index increases in pensions and contribution towards occupational safety on behalf of The Finnish Work Environment Fund. The statutory extra charges are the same in all insurance companies.
The insurance premium is paid as an advance premium at the beginning of the insurance period. The final premium is calculated after the end of the insurance period on the basis of the salary information reported by the employer.
THE FUNDING OF THE INSURANCE
Unlike some other work-related social insurances that are partly funded by the employees, the premiums for the statutory accident insurance are paid in full by the employer.
A policy holder who considers the charge of the insurance premium to be in breach of law or contract may submit a material appeal to the Accident Insurance Appeal Board within two years from the beginning of the year the charge was imposed.