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14  Module 1: History and Philosophy of Loss Control                                      Loss Control Management (LCM)


                       It was extremely difficult to obtain an adequate settlement since common law gave injured
               workers very little chance for compensation due to:
                          1.  injured worker will usually hesitate to put his job in jeopardy by suing his employer;
                          2.  does not have much chance to prove his case in court;

                          3.  out of court settlement proved to be more beneficial on the part of the worker than legal
                              action.
                       Workmen’s compensation legislation, in contrast with the old employer’s liability law, eliminates
               the problem of determining whose fault caused the injury. Under workmen’s compensation, the employer
               is held liable not on the basis of his fault or negligence, but on the basis of social policy. With the advent
               of compensation laws, concerned employers had to assume a substantial part of the financial cost of
               injuries.  Employers started shifting their obligation for actual compensation payments to insurance

               organizations, either state or privately operated.

               Milestones

                   •   Compensation Act - England 1897

                   •   Compensation Law - U.S. 1911


                   •   Workmen’s Compensation Act - Canada 1915

                   •   U.S. Congress Passed the Occupational Safety and Health Act of 1970




                                                 Philippine Occupational Safety and Health
                                                 Standards

                                                         The Occupational Safety and Health Standards was
                                                 formulated in 1978 in compliance with the constitutional mandate
                                                 to safeguard the worker’s social and economic well-being as well
                                                 as his physical safety and health. Adopted through the tested
                                                 democratic machinery of tripartism, the 1978 Standards is

                                                 considered as a landmark in Philippine labor and social legislation.

                                                         The Occupational Safety and Health Standards is a set of
                                                 mandatory OSH standards which codifies all safety orders being
                                                 enforced prior to its promulgation. It contains administrative
                                                 requirements, general safety and health rules, technical safety

                       regulations, and other measures to eliminate or reduce OSH hazards in the workplace.



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