TOPIC 6

Role of insurance and risk management in

OHS

Dr Omemo Peter PhD

 Definitions and Terminology
 Risk: likelihood and severity of a harmful incident.
 Hazard: Source or circumstance that can cause a severe
accident.

 Safety: Condition where prohibited risks are at an

acceptable level.

 Risk assessment :is a process in which one evaluates the

risk to the worker’s health and safety as a result of a
dangerous situation at the workplace.
 Risk analysis is part of the risk assessment. In the risk
analysis the marginal values for the object is stipulated,
the risks are identified and the extent of the risk is
• evaluated.
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 Risk management
Risk management is an overall view to
approach hazards and measures to
reduce and eliminate injuries.
Before an effective risk assessment is possible
the hazards needs to be identified and
estimated.
The estimation of the likelihood and severity
of harm as well as choosing and accomplishing
sufficient safety measures are also part of the
risk management process.

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 Risk management
• Risk management plans are never finished.
They must be revised periodically because
risk, risk control, and risk transfer
methods change constantly.
• Insurance is one of many tools available
to risk managers and only one part of the
process.

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 Risk management involves five basic steps:
1.Risk/hazard identification
2.Risk/hazard assessment
3.Making decisions about how to control or
manage risk
4.Implementing those controls
5.Supervising the implementation of the
plan and watching for any new or changing
risks

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 Risk/Hazard Identification
In risk management the first step is identifying
the risks or hazards that might damage property
or result in injury to people.
Risk/Hazard Assessment
After identifying risks and hazards, you need to
evaluate them based on how frequently they may
occur and how severe the potential injury or
damage might be.

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 Risk/Hazard Assessment
• When assessing the hazards one should pay attention
especially to-
 The risk of accidents and health risks
 Ergonomical and physical, psychologial and social
severity disadvantage
 The structure and construction of the work place and
working environment
 The safety of machines, work tools and other equipment

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Risk/Hazard Assessment….Cont
the prevention of accidents, rescue
operations and first aid
the facilities used by the employees
 occured accidents, occupational diseases and
workrelated diseases and also dangerous
situations so called near misses
the age, sex, ompetence and other personal
qualifications of the employee

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 Risk/Hazard Control

The third step in the risk management

process is risk control.
 Insurance is one risk-control tool, but there
are many others
One obvious risk-control option is to avoid
the risk
entirely.
Training is another example of risk
reduction.
Staff should have a clear understanding of
their duties, know what to do, when and how to
do it, and be encouraged to continually and
work together.
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 Risk/Hazard Control………
Another risk-reduction tool is using personal protective
equipment (PPE).

PPE includes seatbelts in vehicles, personal flotation

devices, helmets, harnesses, eye protection, and hearing
protection, among others.

PPE will reduce the severity of injury to staff and potential

cost of workers’ compensation claims.

 It also serves as an example to campers to use

the PPE.

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 Risk/Hazard Control………
 Risk transfer reduces risk to an organization by
passing the risk along to others.
This can be accomplished contractually using
indemnification clauses in contracts.
But the most common risk transfer mechanism is
buying insurance.

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 Insurance
Insurance policies are contracts in which the
underwriters
. agree to assume certain risks for a
premium, the consideration required in all legal
contracts.

Insurance -may be required for workers’

compensation

Insurance is generally used when the potential

severity of a loss is more than an organization .

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 Insurance………………….Cont
Insurance is a tool in the risk management process
but doesn’t cover all the risks to which your camp
organization may be exposed.

Every insurance policy has exclusions, which are as

important to understand as what is covered. NHIF,

Work with an insurance broker who can clearly

explain both what is covered by your insurance
policy and what is not.

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 Workman compensation
• The workmen’s compensation Act Cap 236 currently
is the only Act of Parliament enacted to provide
for compensation for injuries suffered by a worker
in the course of his/her employment provided the
worker remains incapacitated for at least three
days.

• The workmen’s compensation service covers any

person who enters into or works under a contract
of service or apprenticeship with an employer.

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 Workman compensation…….Cont
The employment may be a manual labour or on
contract given in writing or oral.
The remuneration may be calculated by time or by
work done by day, week, month or any specified
period.

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 Agencies responsible for administration
• The Ministry of Labour and Human Resource
Development is responsible for the administration
of the workmen compensation services through
Labour department.
• However, with the recent review of the core
Labour Laws, workmen’s compensation Act will be
referred as Work Injury Benefit Act (WIBA) and
will be administered by the Director of Directorate
of Occupational Health and Safety Services
(DOHSS) in the same Ministry.

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 Agencies responsible for administration..Cont
• With this new arrangement the reporting of work
injuries and accidents will be well captured in the
most relevant department already charged with the
responsibility of prevention of occupational
accidents and diseases.

• The data collected will enable the officers

concerned to institute investigation and hence
hasten remedial measures to avoid further
occurrence of the same.

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 Occupational Diseases
• Occupational diseases that a worker may seek for
compensation are clearly indicated under the
workmen’s compensation Act – Cap 236 and
Factories and Other Places of Work Act – Cap 514.

• The occupational diseases include Byssinosis caused

by cotton exposure, Silicosis caused by exposure to
any silica and Asbestos caused by exposure to any
asbestos, to name just a few.

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 Occupational Diseases …..Cont

• If any worker complains of ill-health in the

workplace the Occupational Medical Specialist
in the department of Directorate of
Occupational Health and Safety Services
(DOHSS) may examine him/her for the purpose
of finding out whether the worker is suffering
from occupational disease or not and finally
offer advise on action to be taken.

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 Occupational Health Services

• The Department of Occupational Health and

Safety Services through the Occupational Health
division is responsible of providing surveillance of
occupational diseases and the work environment,
development and maintenance for collection,
compilation and analysis of occupational health
statistics, medical examination and tests of
workers and dissemination of occupational health
information and first-aid training.
• The division works closely with the OHS
• information center with the department
• in health information dissemination. 20
 Occupational Health Services
• The new Occupational Safety and Health Bill
covers all work places including agricultural
sector adequately.
• The Department of Directorate of Occupation
Health and Safety Services (DOHSS) together
with the Ministry of Health through the
department undertaking training of Public
Health nurses participate in offering courses
on Occupational Health.
• The nurses are in a good position to impact
• occupational health issues to workers as
• they provide public health care services. 21
 Specialized technical, medical and
scientific institutions with linkage to
various aspects of OSH
• Directorate of Occupational Health and
Safety Services is responsible for the
development of rules, regulations, codes of
practice and standards on various aspects of
safety and health activities, processes and
materials as it relates to the safety and
health of the worker.

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Specialized technical, medical and scientific
institutions with linkage to various aspects of
OSH………………cont
Kenya Bureau of Standards is charged with the
responsibility of developing all types of
standards according to the standard Act among
them Standard of material and equipment at
the design and manufacturing stage.
The National Environment Management
Authority (NEMA) in the Ministry of
Environment and Natural Resources.

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 linkage to various aspects of OSH………………cont
Through the Enforcement Review Committee
established under the Environmental
Management and Coordination Act, 1999 in
conjunction with relevant lead agencies are
mandated to recommended standards for
emissions of noise and vibration.

The department of Occupational Health and

Safety and Services is one of the lead agencies
on this area.
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Institutions specialized in hazard and risk
assessment
Directorate of Occupational and Safety
Services department in the Ministry of Labour
and Human Resource Development.

The Government Chemist under section 56 (1) (c)

of the Factories and other Places of Work Act
is mandated to carry out any analysis of any
sample from the workplace.

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 Hazard and risk assessment ………..Cont
The National Environment Management
Authority.
The persons to carry out the assessment are
appointed after they have satisfied the
professional requirement laid down under the
established regulations.

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 Elimination of hazardous child labour
The Ministry of Labour and Human Resource
Development has established a division known as
Child Labour.

 It acts as the coordinating body on issues of

child labour being handled by other departments
in other ministries and non-governmental
organizations.

The department of Occupational Health and

Safety Services is effectively represented in
that division to advance issues and programmes
of hazardous child labour. 27
 Elimination of hazardous child labour
In the year 2001 the government ratified
ILO convention 182 on worst forms of child
labour.
In order to protect the rights of children
the parliament enacted a law by the name
Children Act.

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Elimination of silicosis and asbestosis diseases
The department of Occupational Health and
Safety has included the management of
silicosis and asbestosis in its occupational
health and safety programmes through regular
inspection to ensure effective emission
control are maintained and workers are
provided with PPE and clothing.
 It is important to note that silicosis and
asbestosis are included in the class of
prescribed occupational diseases that are
supposed to be compensated.

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 Elimination of violence and sexual
harassment at work
• At present there is no law in place to
deal with the violence and sexual harassment at
work.
• Elimination of Persistent Organic Pollutants
(POPs)
• A committee was formed through National
Environmental Management Authority for the
purpose of developing effective programmes to
handle persistent organic pollutants.
• The department of Occupational Health and
• Safety Services is represented.
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 Elimination of drug abuse

• Should be addressed during training

sessions on occupational health and safety
or coordinated by the Department of
Occupational Health and Safety Services.

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 Promotion of work-related welfare facilities
The provision of welfare facilities that include
washing facilities, accommodation for clothes
not worn during work hours, sitting facilities for
female workers, first aid facilities, PPEs and
clothing are required to be provided under the
Factories and Other Places of Work Act and its
subsidiary legislation.

The Department of Occupational Health and

Safety Services through the field officers do
enforce for the compliance of this
requirement.
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Promotions of well-being programmes including
healthy lifestyles and stress prevention
• The Occupational Health Division in the
department of Occupational Health and Safety
Services is charged with the responsibility of
ensuring the health of a worker.
• Among ongoing activities include:
• i). T raining workers of occupational health
issues in the workplace including stress
management.
• ii). Carrying out examination of workers in the
workplace and advising them on remedial
measures to be taken. 33
 Application of programmes to combat HIV/AIDS
at the workplace
• The Ministry of Labour and Human Resource Development
has established a unit to coordinate on the HIV/AIDS
programmes, which is linked to National Aids Control
Council. All the departments in the ministry are
represented in the unit. The departments are expected
to develop programmes to address issues related to
HIV/AIDS.

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 HIV/AIDS at the workplace
• The Department of Occupation Health and
Safety Services through Occupational Health
Division do have programmes on HIV/AIDS.

• The HIV/AIDS programmes are incorporated in

the training programmes on Occupational Health
and Safety at workplaces.

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Promotion of programmes on gender
equality and maternity protection
The constitution guarantees gender
equality and our law encourages
maternity protection.
 Information on this on workers is not
available.

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 POLICIES AND PROGRMMES OF EMPLOYERS’
AND WORKERS’ ORGANIZATIONS

• Employers’ organizations
 Individual enterprises that belong to the employer’s
organizations developed their OSH policy statement
independently.
 At the enterprise level the individual workplaces
establish Occupational Safety and Health Committees
that monitor the safety and health conditions in those
premises.
 Currently the safety and health rules already in force
provide, guidelines on the composition of the
employers’ and employees’ representation.
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 Employers’ organizations …Cont
The members recruited to participate in the
safety and health committees, as safety
representatives are required to undertake
basic course in occupational health and safety
and thereafter further training on OHS from
time to time.
The employers are required to provide the
members of the committee with OHS
information including statistics on accidents,
hazardous substances, and reference
materials and properties.

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Employers’ organizations …Cont
The members of the committee are mandated
to provide written recommendations to the
occupier on areas and issues requiring action
following inspection carried out.

The employers’ organization representative is a

member of National Occupational Health and
Safety Committee that deliberate on OSH
issues at national level.

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 Workers’ organizations

The vision of most representative of workers’

organization is to secure decent and productive
work in conditions of freedom, equity, security
and human dignity for all working women and men
in Kenya.

The formation and representation of the

workers in the enterprises is guided by the
current safety and health committees’ rules that
require equal representation from employers and
workers.

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Workers’ organizations….

The members of the committee are required to

train workers in matters related to health and
safety in their respective worker workplaces.
The issues on OSH are deliberated in the
safety and health committee meetings.
The workers’ organization is represented in the
National Occupational Health and Safety
Committee that is mandated to be responsible
for safety and health matters at national level.

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 Workers’ organizations…..

• It’s important to note that during

the compilation of this report the
current safety and health
programmes were not available from
employer’s and worker’s
organizations.

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 REFERENCES
1.Factories Act – chapter 514 – Laws of Kenya
2. Factories and other Places of Work Act – Laws of Kenya
3. Kenya Gazette Supplement Acts, 1990. 18th May 1990.
4. The Constitution of Kenya. Revised Edition 1979 (1969).
5. Public Health Act – Chapter 242. Revised Edition 1986 (1972).
6. The Petroleum Act – Chapter 116. Revised Edition 1972 (1962).
7. The Environmental Management and Co-ordination Act, 1999. Commenced
on 14th January 2000.
8.The Food, Drugs and Chemical Substances Act – Chapter 254. Revised
Edition 1980 (1967).
9. The Physical Planning Act – Chapter 286. Revised Edition 1996.
10. The Local Government Act – Chapter 265. Revised Edition 1998 (1986).
11. The Factories and other Places of Work (Woodworking Machinery) Rules.
L.N 431/1959.
12. The Factories and other Places of Work (Docks) Rules. L.N. 306 / 1962.
13. The Factories and other Places of Work (Cellulose Solution) Rules L.N.
231/1957, L.N. 87/1964.
14. The Factories and other Places of Work (Protection of Eyes) Rules, 1977.
L.N. No. 44.

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