COMPENSATION FUND CHANGE SYSTEMS

Private sector offers to assist with backlog

System migration problems at the Compensation Fund are resulting in serious backlogs, causing administration headaches for employers. More importantly, these system challenges are impacting negatively on the payment of compensation to employees who have been injured on duty. The compensation for employees who have been injured on duty is legislated by the Department of Labour.

This situation has compelled CompSol, a company specialising in providing end-to-end injury on duty (IOD) processes, to refine its own systems and integrated processes. Irrespective of the situation at the Compensation Fund, CompSol have undertaken to maintain their service standards to their medical service providers and employer clients who use their systems, thereby enabling both parties to receive payments due to them. CompSol is also in contact with the Compensation Fund to find a way for all stakeholders in the IOD industry to collaborate and overcome the current system glitches.

To put the challenge in context, since October 2011 about 95% of all injury on duty (IOD) cases reported to the Compensation Fund have not been registered after the new electronic system was implemented at the Compensation Fund to reduce the paper-based processes.

Healthcare professionals treating the injured patient are also complaining that they are not able to obtain the status of the case as the Fund's new electronic data capturing process does not yet allow this. This could potentially have serious implications for the patient.

On a panel discussion held on Talk Radio 702 on the 28th of February 2012, the Compensation Fund Commissioner, Shadrack Mkhonto, admitted that since October 2011 they have had "major migration glitches" and that millions of Rands owed have not been paid out yet. Mkhonto also acknowledged that the Fund's Call Centre was not able assist the hundreds of people phoning in everyday with IOD related enquiries. He publically committed to look into these issues and he was confident that the issues with the new electronic system would be resolved before April 2012.

Fritz Lüttich, managing director of CompSol says: "As key players in the IOD industry, we welcome the fact that the Compensation Fund has decided to implement an electronic system as literally millions of documents need to be captured each day. We also accept that any system migration has difficulties, but - as an industry - we need to put our heads together and find a way to address the current situation which is becoming unmanageable. Not a single medical account submitted to the Compensation Fund since October 2011 has been paid to medical service providers treating injured workers. Compensation payments to injured workers did commence on the new system, but was discontinued shortly afterwards due to a major glitch in the system."

CompSol will continue to engage with the Compensation Fund and offer their expertise and even systems to reduce the pressure. "In the meantime our first priority and focus will be to assist our medical service providers, employer and employee clients to ensure they go through the claiming process as easily as possible and receive compensation timeously," says Fritz.

Step 1 - Employer logs an injury on the CompSol system.Step 2 - Medical service providers are notified about the injured employee.Step 3 - Medical service provider logs all details on CompSol system and gets paid.