e-COID improves Compensation Fund efficiency

Monday, November 4, 2019

The process for companies to submit Return-of- Earnings to the Compensation Fund (CF) has become a lot simpler with the launch of a new claims management system.

Through the e-COID project, the department will see filing more streamlined, the end-to-end referencing and reconciliation of payments, online payment mechanisms to major banks as well as improved validation of user information.

Only in exceptional cases will the CF allow walk-ins to assist clients, said Commissioner Vuyo Mafata, addressing stakeholders during a breakfast networking session in Port Elizabeth at the weekend. He was meeting with South African Women in Construction.

The objective of the CF is to provide compensation for disablement caused by occupational injuries or diseases. Among the challenges the fund has faced over the years were registration of employers, which took up to 90 days as well as incorrect reference numbers being used thus leading to misallocation of funds in the payments of assessments.

Other challenges with the previous and current system include:

-        Lack of automated verification and validation of information;

-        Lack of automation of business processes;

-        Challenges with the switching of batches,

-        Manual generation of reports;

-        Lack of Integration of systems (Claims and payment system);

-        Data Migration from the legacy systems;

-        Segregation of duties; and

-        Lack of Document Management System.

However, through the e-COID project the fund has realised improved validation of user information – faster turnaround time for registration of companies at the fund as well as efficiency of submission of Return of Earnings, Mafata said.

Other significant benefits of the new claims system were correct workflows – where the right process going to the right person at the right time; status updates on the progress of claims; timeous payments to all stakeholders and data migration from legacy systems.

The fund has said less than 50 percent of employers submitted their Return of Earning. “We are here to support employers in terms of compliance” he said.

The Fund’s next session is expected to be held in Queenstown in conjunction with the Border – Kei Chamber of Business on 13 November. – SAnews.gov.za