INTRODUCTION
Accident are very costly. They cause monetary loss directly or indirectly. The losses are both visible and invisible. The invisible losses can not measured in terms of money.
When an accident occurs, it causes injury to the victim and reduce the productivity. so both the employer and employee incur financial loss. The losses suffered by the management are discussed below.
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| Cost of accident |
1. Direct costs
The includes the following expenditures.
1. Payment of compensation.
2. Medical expenses
3. First aid and other incidental expenses
4. Cost of training a new worker
5. Loss due to waste of raw material
6. Loss of production and quality due to the inexperience of the new employee.
2. Indirect costs
The includes the following expenditures.
1. Wages paid to the injured person.
2. Wages paid to the employee who stop production and crowd around the injured to help him or out of sympathy or curiosity.
3. Wages to the management staff who spend time to help the injured and investigate the accident.
4. Cost due the loss of machine time - of the injured and other workers.
5. Cost due to the damage to the machine.
6. wages to the foreman who selects and trains a new employee.
7. Cost due the spoilage of material.
8. Loss of profit due the loss in production.
9. Legal expenses if any.
10. Cost of training a new workers.
11. Loss due to the reduction in morale of the employee.
Thus accident causes loss to employer and employee. Accident also causes expenditures to government. The government has to conduct enquiry, appoint more inspectors and take social security measures. Every accident lowers the morale of the workers. They become nervous in their fear of accident.
So accident increase the overall cost of production and adversely affect the production and morale.
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