Occupational accident cost estimation: a case study in wood based related industries

Abstract

This objective of the study is to estimate occupational accident cost in manufacturing industries, especially in wood based related industries. The study attempts to identify, define, and classify the cost components of occupational accident related cost and to catalogue the various economic approaches used to estimate the entire costs of occupational accident and to propose the risk prevention plan. The study uses local specific approach by reviewing company historical records on occupational accident as reported in JKKP 6, JKKP 8, JKKP 9 and company internal investigation reports. For each occupational accident, the site safety officer in charge, human resource and, account employee, supervisor, victim, related co-workers and relatives were interviewed in order to estimate direct costs, indirect costs, prevention costs and other personal cost related to the accident. Other related information such as personal data of the victim, type of injuries, location of injuries and cause of injuries were recorded. A total of 24 occupational accidents data for the past five years were analyzed in the cost of accident summary report to determine the overall ratio of direct to indirect cost and ratio of total cost of accident to prevention cost. A further analysis was carried out to determine the most significant cost of accident related to demographic profiles for Malaysian and Non Malaysian employees. In conclusion, this study has determined the ratio of direct to indirect cost of occupational accident and has proposed the risk prevention plan with additional information on cost of accident and cost of prevention.