About the Compensation Fund


About the Compensation Fund


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The Compensation Fund is the Governmental Department that enforces the Compensation for Occupational Injury and Disease Act (formally known as Workers Compensation Act) or abbreviated to COID Act. The first Workers Compensation Act was introduced in 1914, which at first was considered fairly inefficient partly due to lack of employer’s cooperation to comply but was later adapted and expanded on to cover workplace diseases as well.

The COID act was implemented in 1993 with a much broader spectrum of injury and disease coverage. With a rising population and ever increasingly diverse employment conditions with technological advancements and industry developments, over time the need for amendments in the act will in all likelihood be endless, the first amendment being in 1997.

The act has proven to be very comprehensive being beneficial to employee and Employer simultaneously not ignoring the obligations of either party. For many years workmen’s compensation was not taken seriously, with the exception being Employers that experienced a high number of injuries. This was the case for many Employers until the Minister of Labor in conjunction with other Departments announced that as an additional requirement to apply for a tender, employers must have a Letter of Good Standing (Only issued when an employer is 100% compliant with COIDA). This created a massive increase in the number of Registrations at the Compensation Fund.


The Commissioner utilized various IT-Systems for the administration of Injury on Duty Claims some being an improvement over previous systems.

Unfortunately, none were able to address the backlogs, transformation of data between systems, and the complexity of the processes required in Injury on Duty Claims.

During 2012 the online system was introduced (Umehluko). This System was created so that claims, Employer Assessments and Medical Accounts could be submitted online. This has proven to be convenient, saving a lot of time and paperwork for all parties concerned. Over time, shortfalls became apparent and the latest system was supposed to go live on 1 October 2019.


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