Esta ley enmienda la Ley del Sistema de Compensaciones por Accidentes del Trabajo para autorizar la emisión de pólizas de seguro de compensación a camioneros concesionarios de la Comisión de Servicio Público. Además, aumenta las compensaciones por incapacidad temporal, incapacidad total permanente, beneficios de ama de casa, gastos fúnebres, beneficios para dependientes en caso de muerte del trabajador y cantidades para necesidades perentorias.
(Approved September 8, 2004)
To amend paragraph five of Section 2, add three (3) Sections numbered 2A, 2B and 2C, and renumber existing Sections 2A and 2B as Sections 2A and 2E; to amend the first paragraph of clause (2); paragraphs (1), (2) and (4) of clause (4); items
(a) and
(b) of the second paragraph of the heading Pre-existing Disabilities; clauses (1), (2) and (3),
(f) ,
(g) ,
(h) and
(i) of clause (5) of Section 3 of Act No. 45 of April 18, 1935, as amended, known as the "Compensation System for Work-Related Accidents Act," to authorize the issue of worker's compensation insurance policies to concessionary truck drivers of the Public Service Commission, to increase compensation for Temporary Disability, Permanent Total Disability, Housekeeper benefits, the amount to be granted to foster the mobility of the injured person about the house, funeral expenses benefits, compensation benefits for dependents in case of the death of the worker, and amounts granted for peremptory needs.
The workers occupational accident and disease compensation system is the oldest social security program of the Commonwealth of Puerto Rico.
The main entity of the system is the worker, since the backbone of our economic development is the well being of the worker.
Concurring with this position, we improved the compensation granted to workers for injuries caused by occupational accidents and diseases in 1986, 1987 and 1988. Unfortunately, this plan was discontinued and the workers benefits have remained unaltered since the latter date, although the Island continued to experience economic growth. In view of this fact, inflation has reduced their purchasing power.
Under this administration, the public policy of the Commonwealth of Puerto Rico has been focused on promoting the well being of its constituents, especially with respect to workers occupational accidents and diseases. To do justice to the workers who have been injured in the performance of their duties is unavoidable.
According to the available economic resources, we intend to return to the course of action favorable to the workers, improve their quality of life by increasing compensation and other benefits granted by the Compensation System for Work-Related Accidents Act. Furthermore, a controversy has arisen lately about the refusal of the State Insurance Fund Corporation to issue insurance policies to persons who render carrier services claiming that under the Compensation System for Work-Related Accidents Act such an obligation falls upon and must be met solely by those who contract the services. In those cases whereby said Corporation has issued insurance policies to persons who render carrier services, the Corporation has even indicated to them that the policies thus obtained are not valid. As a result of such a position, those who used to contract their services in the past now refuse to do so, causing serious damages to these persons and to the economy of the Island.
It was not the intention of the Legislature to burden agricultural, industrial and service enterprises and others that use middlemen for the transportation of their products, merchandise or persons, by requiring that said enterprises insure individuals who render such services even when the latter, who are deemed to be employers and in compliance with the law, have obtained their own insurance policies. Neither has it been the intention of the Legislature to burden agricultural, industrial and service enterprises and others with the obligation of obtaining insurance policies for the persons
who render such services when said services are rendered by small business owners who use their own vehicles as their only work instrument. As a matter of fact, it is these small business owners who, after having obtained their own insurance policies, have been questioned regarding their validity, and for this reason, they demand that their obligation of being insured be clarified once and for all so they may be entitled to the benefits set forth by the law.
The intention of the Legislature is contravened by the position assumed by the State Insurance Fund Corporation in a circular letter dated January 4, 2002, in which it sets as public policy that independent truck drivers devoted to cargo transportation shall be considered as employees of the contractor, while denying the coverage requested by such independent truck drivers. This policy and this practice adopted by the State Insurance Fund Corporation attempt and discriminate against small business owners who being self-employed are devoted to providing such services, since they order those truck drivers who have their own employees to be insured, while those who do not have employees do not have the right to avail themselves of the health services coverage offered by the law. Under such circumstances, it is easy to foresee that whoever needs to contract a middleman to provide cargo transportation or carrier services shall be inclined toward contracting the services of a trucking business that has its own insured employees instead of contracting independent truck drivers to avoid having to absorb the cost of the insurance policy.
However, there are precedents, not only in the Compensation System for Work-Related Accidents Act itself, but also in other statutes in which protection has been extended to small business owners. Thus, for example, Section 2-A of the Compensation System for Work-Related Accidents Act
provides benefits for employers who perform manual labor. Furthermore, Act No. 428 of May 15, 1950, known as the "Social Security for Chauffeurs Act," protects owners of motor vehicles used to render public transportation.
To remedy the current situation and to clarify once and for all the rule of law on this matter, this Legislature hereby amends Sections 2, 2-A, 16 and 36 of Act No. 45 of April 18, 1935, known as the "Compensation System for Work-Related Accidents Act," to enable those intermediaries that operate transportation or carrier services, whether public carriers, carriers under contract or carrier enterprises, to obtain the coverage offered by said statute for their workers or employees as well as for themselves, if self-employed in the rendering of such services.
Section 1.-The fifth paragraph of Section 2 is hereby amended, three Sections numbered as 2A, 2B and 2C are added, and existent Sections 2A and 2B are renumbered as Sections 2D and 2E, the first paragraph of clause (2) is amended; paragraphs (1), (2) and (4) of clause (4) are amended; paragraph (4) of clause (4) is amended; items
(a) and
(b) of the second paragraph of the Pre-existing Disabilities heading are amended; clauses (1), (2) and (3),
(f) ,
(g) ,
(h) and
(i) of clause (5) of Section 3 of Act No. 45 of April 18, 1935, as amended, known as the Compensation System for WorkRelated Accidents Act, are hereby amended to read as follows: "Section 2.- ... In any case whereby a farm or industrial or public-service or other employer uses employees, middlemen, adjusters or industrial partners to operate any transportation service for farm products, merchandise or passengers, said employer shall be covered by the provisions of this Act and shall insure the workers rendering such transportation services, even when
they are hired directly by the employees, middlemen, adjusters or industrial partners of such an employer; provided, that this paragraph shall not apply to concessionary truck drivers of the Public Service Commission who may obtain workers compensation insurance pursuant to this Act. 2A.-The State Insurance Fund Corporation is hereby authorized to issue workers compensation insurance policies with the authorization of the Public Service Commission to natural persons who are truck drivers who shall offer or render cargo transportation services on the public thoroughfares of Puerto Rico for a fee to the general public or to individual persons. This insurance policy shall be paid for by the truck driver himself, and shall extend protection to him as an employee in the event of a work-related accident or an occupational disease, as established in the Compensation System for Work-Related Accidents Act. The premium to be imposed shall be computed based on the existent rate multiplied by thirty (30) percent of the weekly income earned by the truck driver. 2B.-Truck Driver Work-Related Accident or Occupational Disease Claims
When any truck driver covered by a workers compensation insurance policy suffers any work related injury or disease, he shall file a claim using the form provided by the State Insurance Fund Corporation within the term set forth by law. Said claim shall include a detailed account of the circumstances under which the alleged occupational accident or disease occurred, and the date, time, and place as well as the name and address of the witnesses, if any. It shall be required to present the aforementioned report to receive medical-hospital services, as well as any other benefits granted by this Act, with the exception of emergency treatments.
2C.-Administrative Penalty for Improperly Filing and Claiming Any truck driver availing himself of the benefits mentioned in this Act for other than a work-related injury or condition shall be bound to reimburse the expenses defrayed by the State Insurance Fund Corporation.
Section 2.- The existing are hereby renumbered of the State Insurance Fund Corporation, shall extend $[s i c]$... 2E.-Affidavit for Injuries ... "Section 3.- Workers and Employees Rights Any worker or employee who suffers from an occupational injury or disease within the conditions established in Section 2 of this Act shall be entitled to:
A compensation equal to sixty-six and two thirds percent (66 $2 / 3$ ) of the wages earned on the day of the accident or which he would have earned were it not for the accident, during such time as he is disabled for work and payable at the end of each work week if the disability were to be of a temporary or transitory nature. The period for such a payment shall in no case exceed three hundred twelve (312) weeks; provided, that in no case shall such a payment be of more than one hundred (100) dollars nor of less than thirty (30) dollars a week...
If as a result of the injury or disease, the case of the worker or employee is determined to be a case of permanent total disability, the worker or employee shall continue to receive a sum equal to sixty-six and two thirds percent (66 2/3) of the wages earned on the day of the accident for such time as said total disability may last, but in no case shall more than four hundred thirty (430) dollars a month nor less than one hundred thirty (130) dollars a month be paid; provided, that the payment of this pension shall be retroactive to the date of the accident, but the retroactive payment shall never exceed twelve (12) months; and provided, that at the request of the beneficiary, and in lieu of a life pension, the Administrator may pay the compensation to the beneficiary, in part or in total in one single payment, provided the latter may justify a profitable investment in the judgment of the Administrator, and to these effects the compensation shall be computed on the basis of five hundred forty (540) weeks for a term that added to the term during which the injured person had already received the monthly compensation payments shall not exceed five hundred forty (540) weeks, in which cases the weeks shall be computed at a rate of sixty-six and two thirds percent (66 2/3) of the weekly wage which the beneficiary was earning on the day of the accident, or would have earned had it not been for the accident, but in no case shall the computation yield more than one hundred (100) dollars nor less than thirty (30) dollars per week. Provided, further, that the total compensation to be paid shall in no case exceed thirtytwo thousand four hundred $(32,400)$ dollars. If after the investment is made there is a balance left, it shall be paid at a rate of three hundred
(300) dollars a month, unless the beneficiary chooses to make a subsequent investment.
When, in the judgment of the Administrator, the physical or mental condition of the disabled person requires the continuous assistance of another person, he may authorize an additional payment of not more than eighty (80) dollars a month on behalf of the relative or the person who will tend to the disabled person while the need exists.
In those cases of permanent total disability where, as a result of a compensable occupational accident or disease, the worker or employee needs to use special accessories prescribed by a physician of the State Insurance Fund Corporation, upon his final discharge, the Administrator shall provide said special accessories; provided, that said special accessories shall not be replaced for any cause. Should the injured person intend to build a dwelling for his use especially designed to facilitate his movement or to adapt the one he owns or to remodel its accesses for the aforementioned purposes, the Administrator shall grant as an additional benefit a sum not greater than one thousand three hundred $(1,300)$ dollars, to be invested in the attainment of such purposes...
In all cases in which a worker or employee dies of any cause independent from the injury received in the accident for which permanent disability was adjudicated or is pending adjudication, the following procedure shall apply:
(a) If the injured person chose to make an investment, the remainder of his compensation shall be paid to the beneficiaries in monthly payments of four hundred thirty (430) dollars subject to the limitations fixed in the first paragraph of clause (5)(3)(C) of this Section, should there be beneficiaries other than the widow, children or concubine, the distribution shall be made subject to the provisions of clause (5) (3) of this Section.
(b) If the injured person did not choose to make an investment, the total compensation shall be computed by multiplying five hundred forty (540) weeks by his weekly compensation equal to sixty-six and two thirds percent (66 2/3) of the weekly wage which the injured worker was earning on the day of the accident or would have earned had it not been for the accident, but in no case shall the computation yield more than one hundred (100) dollars nor less than thirty (30) dollars per week. Total compensation shall in no case exceed thirty-two thousand four hundred $(32,400)$ dollars. From the total compensation so computed there shall be deducted the amount paid to the injured worker prior to his death, and the remainder shall be paid to his beneficiaries in the manner and with the limitations provided in clause
(a) of this subsection.
(e) Compensation in Case of Death
(f) If the beneficiaries of the deceased worker or employee are the widow, father, mother or children, including posthumous and adoptive children, or concubines, the compensation shall be paid indefinitely, except as provided in paragraph subclause C of this Section.
If the beneficiaries of the deceased worker are only the widow or the concubine, she shall be entitled to receive a total compensation amounting to fifty (50) percent of the wages the worker or employee was earning on the day of the accident, payable at the end of each month, which shall not be less than one hundred thirty (130) dollars nor exceed the sum of four hundred thirty (430) dollars.
When the widow or concubine concurs with only one child, the total compensation to be distributed among the beneficiaries shall be increased by ten (10) percent of the wages the worker was earning on the day of the accident. If several children or other beneficiaries concur with any of them, the total
compensation shall be increased by five (5) percent for each additional beneficiary, but in no case shall the total payment exceed eighty-five (85) percent of the wages of the worker or employee on the day of the accident, nor shall it be greater than five hundred thirty (530) dollars a month. When the only beneficiaries are the children of the worker, including posthumous or adoptive children, the total compensation payable shall not exceed sixty (60) percent of the wages of the worker or employee, and shall be in monthly payments of between one hundred thirty (130) and four hundred thirty (430) dollars a month. If there were no widow, concubine or children, including posthumous or adoptive children, and the beneficiaries were only the father or mother, alone or concurrent with other beneficiaries of a lower category, the total compensation to be paid shall not exceed eighteen thousand five hundred $(18,500)$ dollars; provided, that for the purposes of an investment which, in the judgment of the Administrator, would be profitable, the latter may advance to the father or mother of the deceased worker or to both, fifty (50) percent of their share in the compensation. The monthly payments chargeable to the remainder of the compensation shall be reduced proportionally in accordance with the actuarial determination.
(g) If at the time of the death of the worker or employee none of the beneficiaries of those designated in paragraph (F) of this clause exist, it shall suffice that one of the beneficiaries be a grandparent, the foster father or mother, a foster child, a grandchild, or a brother or sister, for the total compensation
payable not to exceed nine thousand five hundred $(9,500)$ dollars.
(h) If at the time of the death of the worker or employee none of the beneficiaries designated in paragraphs (F) and (G) of this clause exist, it shall suffice that one of the beneficiaries of the deceased worker or employee be a foster brother, or a relative of the deceased worker or employee to the third or fourth degree of consanguinity or to the first or second degree of affinity, for the total compensation payable not to exceed six thousand $(6,000)$ dollars.
(i) Upon request of an interested party and for the purpose of meeting peremptory needs arising from the death of the worker or employee, or relative to the payment of debts previously contracted by the worker or employee or to the repair and maintenance of the widow's home, or to school, medical, medication or special feeding expenses for the widow or other beneficiaries, the Administrator may make, as an advance, an initial payment of seven hundred sixty (760) dollars to the widow, two hundred thirty (230) dollars to each parent, and seventy-five (75) dollars to each of the remaining beneficiaries up to a total maximum of one thousand, five hundred $(1,500)$ dollars. When the widow does not concur among the beneficiaries, the Administrator may double the aforementioned amounts, but the total payment of the advance may not exceed a total maximum of one thousand, five hundred $(1,500)$ dollars. The Administrator of the State Insurance Fund Corporation shall provide the manner in which the compensation shall be liquidated and the form of payment of the same."
Section 2.-Separability If any section, paragraph or part of this Act were found to be unconstitutional by a court of law, said finding shall not affect or invalidate the remaining provisions of this Act, but shall rather be limited to the section, paragraph or part which has been found to be unconstitutional.
Section 3.-Effectiveness This Act shall take effect as of July 1, 2004, and it shall apply to all workers or employees who suffer a work-related accident or an occupational disease as of said date.
I hereby certify to the Secretary of State that the following Act No. 263 (H.B. 4539) of the $7^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend paragraph five of Section 2, add three (3) Sections numbered 2A, 2B and 2C, and renumber existing Sections 2A and 2B as Sections 2A and 2E; to amend the first paragraph of clause (2); paragraphs (1), (2) and (4) of clause (4); items
(a) and
(b) of the second paragraph of the heading Pre-existing Disabilities; clauses (1), (2) and (3),
(f) ,
(g) ,
(h) and
(i) of clause (5) of Section 3 of Act No. 45 of April 18, 1935, as amended, known as the "Compensation System for Work-Related Accidents Act," to authorize the issue of worker's compensation insurance policies to concessionary truck drivers of the Public Service Commission, to increase compensation for Temporary Disability, Permanent Total Disability, Housekeeper benefits, the amount to be granted to foster the mobility of the injured person about the house, funeral expenses benefits, compensation benefits for dependents in case of the death of the worker, and amounts granted for peremptory needs, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $17^{ ext {th }}$ of April of 2007.
Francisco J. Domenech Director