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D E PA R TM E N T

OF

C O M M ERC E

BUREAU

OF

A N D

LA B O R

LABOR

CHAS. P. NEILL, Commissioner

S IC K N E S S

A N D

IN S U R A N C E

A C C ID E N T
L A W

O F

S W IT Z E R L A N D
B U L L E T IN
STATES

O F

TH E

BU REAU

O F

U N IT E D
LA B O R

W HOLE NUMBER 103

WORKMEN’ S INSURANCE AND COMPENSATION SERIES




No. 3

AUGUST 1, 1912

WASHINGTON
GOVERNMENT PRINTING OFFICE
1912




C O N T E N T S ,

Page.

Introduction-------------------------------------------------------------------------------------5,6
Text of Federal law of June 13, 1911, relating to sickness and accident
insurance---------------------------------------------------------------------------------------- 7-27
Title I. Insurance in case of sickness_____________________________ 7-13
Title II. Accident insurance_______________________________________13-26
A. Swiss National Accident Insurance Fund___________________ 13-15
B. Cooperation of the recognized insurance funds incase of
sickness_________________________________________________15-16
C. Compulsory insurance______________________________________16-25
D. Voluntary insurance_____________________________________
25
E. Voluntary insurance of third persons______________________ 25, 26
F. Courts__________________________________________________
26
Title III. General and temporary provisions------------------------------------26,27




3




B U L L E T IN O F T H E
U N IT E D

STATES

w ho le n o . 103.

BU REAU

W A S H IN G T O N , D. C .

O F

LABO R.
august i, 1012.

SICKNESS AND ACCIDENT INSURANCE L A W OF
SWITZERLAND.
INTRODUCTION.

This law was enacted by the Federal Council o f Switzerland on
June 13, 1911, and was accepted by a referendum vote o f the Swiss
people on February 4, 1912.
Provision is made for insurance in case o f sickness, the Confedera­
tion granting subsidies to recognized sick insurance funds. Insurance
may be declared compulsory by the Cantons, either generally or for
certain classes o f persons, and public funds may be established for
the same and employers may be required to attend to the payment of
the contributions o f their employees compulsorily insured in such
funds; the employers are not themselves obligated to make con­
tributions to sick funds. The benefits in sickness consist o f provi­
sion for medical care and medicines, together with a daily indemnity
for loss o f time o f not less than 1 franc (19.3 cents). Benefits must
be provided for at least 180 days each year; special provision is made
in cases o f women in confinement.
The National Accident Insurance Fund is maintained as the central
body in the administration of accident insurance, each Canton being
entitled to one agency of this fund. The Confederation is required to
grant to this fund a working capital o f 5,000,000 francs ($965,000),
and a like sum for the creation of a reserve fu n d; it also shares in
the expenses o f administration. The recognized insurance funds and
the accident funds cooperate, separate accounts, however, being kept
in the provisions for reimbursement for expenses.
Accident insurance is compulsory for all employees and laborers
that work in Switzerland in transportation and in the postal service; in
factories subject to the Federal law of March 23,1877, in the building
trades, engineering works, telegraph and telephone construction and
maintenance, in the operation of mines, quarries, and gravel banks,
and in industries which produce or use explosives. Insurance is given
against the risks of accidents either occupational or nonoccupational.
Under the former head are included all bodily injuries incurred in
the course o f work performed under the direction o f the employer or
his representative, or in the course o f the service undertaken in the



5

6

B U LLETIN OF TH E BUREAU OF LABOR,

direct or indirect interest o f the employer and with his presumed
assent, or incurred during an interruption o f the work or before or
after work i f the injured person was properly on the premises or in
the danger zone o f the undertaking. Other bodily injuries are
reckoned as nonoccupational. Diseases exclusively or essentially due
to employment in designated classes o f work are considered accidents
within the meaning o f the present law.
The insurance covers the supply o f medical attendance, medicines,
and indemnity for lost time, whether the disability be temporary or
permanent. In case o f death, funeral expenses are provided for and
annuities for surviving beneficiaries. The indemnity for disability
begins with the third day and corresponds to 80 per cent o f the earn­
ings, no earnings in excess o f 14 francs ($2.70) per day being con­
sidered. I f the disability is regarded as permanent, a total annuity
equal to 70 per cent o f the annual earnings is to be paid. I f the
services of a nurse are required or if other special attention is neces­
sary, the amount o f this annuity may be increased to the entire
amount o f the earnings during the existence of such need. For
partial disability proportionate deductions are made, no annual
earnings in excess o f 4,000 francs ($772) being considered. The an­
nuity may be revised at any time within three years, and afterwards
at the expiration of the sixth and ninth years. Provision is made
for the redemption o f an annuity by lump-sum payments in certain
cases.
In case o f death an annuity equal to 30 per cent o f the annual
earnings o f the insured person is to be paid to a widow, or to a
widower if already infirm or i f he becomes permanently disabled
within five years after the death of his insured wife, so long as he
remains a widower. On the remarriage o f a widow she is allowed
a lump sum equal to her annuity for three years. Each legitimate
child is entitled to 15 per cent o f the annual earnings of the insured
person until 16 years of age. I f a child at this age is permanently
incapacitated for labor the annuity shall continue until 70 years
from the date o f birth o f the insured person. Provision is made
for other relatives, though the sum o f all annuities allowed shall
in no case exceed 60 per cent of the earnings of the insured person.
Employments are classified according to their risk and premium
rates fixed accordingly by the officers o f the National Fund, and for
occupational accidents premiums are paid entirely by the employer;
F or nonoccupational accidents the premiums are paid three-fourths
by the insured persons and one-fourth by the Confederation. . The
employer acts as collector for the National Fund in all cases.
Any person not subject to the provisions o f compulsory insurance
may be insured voluntarily, subject to the conditions fixed by the
Federal Assembly in accordance with plans submitted by the Na­
tional Fund.



SICKNESS AND ACCIDENT INSURANCE LAW OF SWITZERLAND.

7

FEDERAL LAW OF JUNE 13, 1911, RELATING TO SICKNESS AND
ACCIDENT INSURANCE.
TITLE I.— INSURANCE IN CASE OF SICKNESS.

Article 1.
The Confederation encourages insurance in case of sickness by according
subsidies to the sickness insurance funds, in conformity with the present law.
Every sickness insurance fund which satisfies the provisions of the present
law is entitled to Federal subsidies; they may organize as they please, in so far
as the law does not make contrary provision.
The recognition of the right to the Federal subsidies shall be pronounced by
the Federal Council.
In the following articles the abridged expression “ sickness funds ” or
“ funds'’ designates the recognized insurance funds for cases of sickness.
Article 2.
The Cantons may:
( a ) Declare the insurance compulsory in case of sickness, either generally
or for certain classes of persons.
(b) Establish public funds, taking into consideration existing relief funds.
(<?) Compel employers to attend to the payment of the contributions of their
employees compulsorily insured in the public ftmds, without, however, binding
the employers themselves to the payment of the contributions.
The Cantons are authorized to delegate these powers to their respective
r
communes.
The provisions made by the Cantons or communes for the application of
paragraph 1 shall be submitted to the Federal Council for approval.
Article 3.
The funds shall have their seats in Switzerland.
They shall not treat Swiss citizens less favorably than other insured persons.
Their systems of operation of the sickness insurance shall be mutual.
They shall offer full security for the performance of their contracts.
They shall have the right to unite other branches of insurance with sickness
insurance.
The recognition of a fund shall not be refused because the constitution makes
membership dependent upon belonging to a certain profession or establishment
(enterprise), a certain religious sect, or a certain political party.
Article 4.
Funds desiring to be recognized must submit their rules and other provisions
regulating the rights and obligations of their members to the Federal Council
for approval. All modifications of these rules and other provisions shall be
likewise submitted.
Article 5.
Every Swiss citizen has the right to become a member of a fund with whose
provisions as to admission he complies.
The conditions relating to the religious cult or political party of an applicant
for membership shall not be construed to the prejudice of a Swiss citizen solicit­
ing membership in a fund at his place of residence if he can not gain admission
at said place of residence to any fund whose general conditions of admission
he fulfills.

49830°—12-----2




8

BU LLETIN OF TH E BUREAU OF LABOR,

Article 6.
The funds shall admit persons of both sexes on. the same terms, with the
exception of funds of a trade, a trade-union, or an establishment numbering
among its employees only persons of one sex.
Insurance benefits shall not vary according to the sex unless the contributions
show a corresponding variation.
Article 7.
Free transfer consists in the right of insured persons to change from one
fund to another.
That right may be exercised when the insured person is compelled, according
to the terms of the statutes, to quit the fund of which he is a member, by
reason of a change of residence, occupation, or employer, or when the fund is
dissolved or ceases to be recognized.
That right is guaranteed to every insured person who has been a member
of one or more funds for a period of at least one year without an interruption
of more than three months.
The right of free transfer obtains in respect to the funds with whose general
conditions as to admission the applicant for transfer complies, and in default
thereof in respect to any other fund at his place or residence.
Article 8.
Members of sectarian or political funds shall have the benefit of the right
of free transfer only in respect to funds of the same confession or of the same
party.
When a member of a sectarian or political fund has been previously identified
with independent funds and desires to be reinstated in a fund of that class,
the duration of his membership in sectarian or political funds shall not be
taken into account in the computation of the time periods fixed by article 7.
.The right of free transfer terminates in the case of a person insured in the
fund of an establishment in five years after his admission to membership in
mat fund.
Article 9.
*The rules of the funds which make the admittance of the applicant for
membership contingent upon the state of his health, or fix an age limit, shall
not be construed adversely in the case of a person transferring his membership.
No entrance fee shall be collected of a person transferring his membership.
The person transferring his membership shall not be constrained to make con­
tributions in excess of those which the fund collects of every new member of
the same age for the same benefits. If the person transferring his membership
has reached the age limit specified by the statutes, he must pay to the fund
such contributions as correspond to the insurance benefits, taking into consid­
eration his age at the time of his affiliation.
He shall be entitled to the benefits which the fund, under like circumstances,
generally assures to its other members. The right to benefits shall date from
the time of admission to membership; but the fund may, within the meaning
of article 13, take account of the days during which the new member has had
relief from other funds.
Article 10.
If an insured person having this right of transfer leaves the district in
which his fund is situated, or changes his occupation or employer, and finds
no other fund in which he fills the general conditions of admission, he may
remain a member of his fund as long as he resides in Switzerland.
The same right belongs to a member of an establishment fund who has lost
the privilege of free transfer according to the terms of article 8, paragraph 3.
When the insured person avails himself of this right, the fund may demand
of any fund at the new residence of the insured person, allowing for reimburse­
ment of expenses, that it shall take charge of the collection of contributions, and,
in case of sickness, of the payment of insurance benefits and of supervision.
Article 11.
The funds may not exclude any member for religious or political causes.




SICKNESS AND ACCIDENT INSURANCE LAW OF SW ITZERLAND.

9

A rticle 12.

Funds must insure to their members at least medical care and medicines or
a daily indemnity for loss of time of not less than 1 franc (19.3 cents) for each
day of absolute inability to perform labor. In so far as it is gratuitous, the
treatment of the insured by public contract physicians is considered as a pay­
ment from the funds themselves.
Children may not be insured with a view to an indemnity for loss of time
until they reach the age of 14 years.
A rticle

13.

The length of membership necessary to entitle its members to benefits in
case of sickness (the probation period) shall not exceed three months.
If the sickness, after the expiration of the probation period, has been re­
ported in conformity with the statutes, medical attendance and medicines must
be provided from the beginning, and the indemnity for loss of work from the
third day, at the latest, from the beginning of the sickness (waiting time).
Benefits must be provided for members, for one or more periods of sickness,
for at least 180 days during a period of 360 consecutive days.
The fund shall not be compelled to bear more than three-fourths of the
medical and pharmaceutic expenses if it provides these benefits for at least
270 days in a period of 360 consecutive days.
A rticle 14.

Funds shall consider childbirth as a sickness if at the time of the confine­
ment the insured person has been a member of the fund for at least nine months
without an interruption in excess of three months.
The benefits provided for cases of sickness shall be continued to the con­
fined woman for at least six weeks. The duration of the payments to a woman
in confinement is not regulated by the application of article 13, paragraphs
3 and 4.
If the woman after her confinement shall work during the period of assistance, the amount of her earnings may be deducted from the benefits for loss of
time.
d
If the mother is still nursing her child four weeks after the expiration of
the period of assistance, the fund shall allow her a nursing benefit of at least
20 francs ($3.86).
A rticle 15.
If the fund grants medical attention, every sick person may choose a physician
among those practicing in his place of abode or in the neighborhood.
By virtue of its office, or on the demand of the attending physician of the
insured person, or of a member of his family, the fund may call in a consulting
physician.
A rticle 16.
The funds may on the basis of fixed rates enter into contract with physicians
or associations of physicians and intrust the treatment of the insured persons
exclusively to them. Physicians having practiced regularly for one year at
least in the district embraced by the fund may enter into these contracts.
In the mountainous regions, where communication is difficult and the popula­
tion scattering, if the public and compulsory funds have made a contract with
physicians, assuring to the latter an annual allowance, the funds have the right
to exclude other physicians from the contract.
A rticle 17.

The right of the insured persons to the choice of a physician ceases if their
transfer to a hospital imposes the obligation of intrusting medical treatment
to the staff of that institution.
Public and compulsory funds may intrust the medical treatment of their mem­
bers to a medical institution.
A rticle

18.

The funds may secure the services of consulting physicians commissioned to
Digitized forsuperintend the medical service.
FRASER


10

B U LLETIN OF TH E BUREAU OF LABOR,

A rticle 19.

If the fund provides for the supply of medicines, every sick person treated
at home may choose his pharmacy among those established in his place of abode
or in the vicinity.
The public and compulsory funds may delegate to a hospital the duty of sup­
plying the medicines to be furnished to their members.
The funds may, on the basis of fixed rates, enter into contracts with phar­
macists or associations of pharmacists, and leave the provision of medicines
exclusively to these pharmacists. The managers of pharmacies established in
the territory of the fund may join in these contracts.
A rticle 20.

If the fund does not succeed in making contracts with physicians and phar­
macists, it may, with the assent of the Federal Council, for a maximum period
of one year, substitute cash benefit instead of furnishing medical attendance
and drugs. The amount of this cash benefit shall be fixed by the cantonal gov­
ernment and shall correspond to the average cost of medical attendance and
drugs. This substitution shall not affect the right of the fund to the Federal
subsidy.
A rticle 21.

The terms “ physician ” and “ pharmacist ” designate physicians and phar­
macists who are possessors of a Federal diploma.
Persons authorized by a Canton to practice medicine or to conduct a phar­
macy in virtue of a certificate of scientific qualification shall, in regard to the
territory throughout which the authorization extends, be on a similar footing
with the physicians and pharmacists referred to in the preceding paragraph.
Physicians authorized by a Canton to conduct a pharmacy shall be on an
equal footing with the pharmacists referred to in the first paragraph of this
article, in respect to the territory to which the authorization applies.
A rticle 22.

The rates for medical attendance and for drugs shall be fixed by the can­
tonal governments, after advising with representatives of the funds, as well
as with the professional associations of physicians and pharmacists. The rate
lists shall indicate the maximum and the minimum charge for every service of
the physician and for all medicine, and the parties may neither increase nor
reduce it. In working out the rate lists and in applying them regard shall be
had for local circumstances and for the annual benefits which the funds may
undertake to pay.
The contracts entered into with physicians or pharmacists are subject to the
approval of the cantonal government. This government shall examine the sec­
tions relating to rates and other stipulations to ascertain if they are conform­
able to law and equity. The decision of the cantonal government may, within
20 days, be made the subject of an appeal to the Federal Council.
"

A rticle 23.

The fees shall be the same for all members of the fund.
The funds shall not be bound to pay unfair medical charges or for remedies
not prescribed by a physician who is authorized to attend the sick.
A rticle 24.

If a fund, for weighty reasons pertaining either to his person or to his pro­
fessional activity, contests a physician’s or a pharmacy manager’s right to treat
its members or to furnish them with medicines, it is the duty of a court of
arbitration, instituted conformably to article 25, to determine as to his exclusion
and to fix the duration thereof.
A rticle 25.
Disagreements between the funds and physicians or pharmacists shall be
settled by an arbitration court.
The cantonal governments shall designate the arbitral authority and regulate
the procedure.
In organizing the court of arbitration care must be taken to insure to each
interested
 party an equal number of representatives.


SICKNESS AND ACCIDENT INSURANCE LAW OP SWITZERLAND,

11

A rticle 26.

The funds must see that none of their members are insured in more than two
sick-insurance funds. Nevertheless an insured person who on January 1, 1911,
may be a member of more than two sick-insurance funds shall not be compelled
to withdraw therefrom.
The funds are bound to exercise caution that insurance does not become a
source of profit for their sick members (articles 12 and 74).
A rticle 27.

In case of accidents, the funds must give their assistance to the accidentinsurance service conformably with articles 54 to 59 of the present law.
A rticle 28.

The funds shall use their resources for the purposes of insurance only.
A rticle 29.

The funds are legal persons, with full rights as such.
Funds connected with public establishments or corporations remain subject
to the legal provisions and decisions of the authorities having control of such
establishments.
Insured persons shall not be personally responsible for the contracts of
the fund.
A rticle 30.

*

The private litigations of the funds among themselves or with their insured
members or third persons shall come within the jurisdiction of the ordinary
courts unless cantonal legislation or the rules of the fund (the latter in so far
as they relate to the controversies of a fund with its insured members) should
ordain otherwise.
Articles 120 to 122 contain exceptions.

The funds shall be exempt from taxation except for levies on their real estate
that is not directly utilized for the business of insurance.
Legai documents directly intended for the use of the funds are exempt from
dues.
A rticle 32.
Once a year the funds must balance their accounts conformably to the instruc­
tions given by the Federal Council and submit them to that authority. The
Federal Council may require the correction of errors in the accounts.
A rticle 33.

The Federal Council may, of its own accord or on complaint, and after warn­
ing is disregarded, punish by a maximum fine of one hundred francs ($19.30)
every fund that violates a provision of articles 3 to 28 and 32.
In case of persistent violation and after ineffectual warning, the Federal
Council may decree the withdrawal of recognition.
The withdrawal must be decreed against every fund that no longer offers the
necessary security to its members and fails to adopt the measures required by
the Federal Council for the maintenance of its solvency.
A rticle 34.

Notice of the surrender of recognition, by a fund must be communicated to
the Federal Council in writing; it takes effect three months after the date of
this communication.
In case of surrender or withdrawal, a new recognition may not be granted
before two years at the earliest.



12

BU LLETIN OF TH E BUBEAU OF LABOR.
A rticle

35.

The Confederation shall pay to the funds for an insured person for an entire
year the following subsidies:
(a) For children, up to and including the year in which they attain the age
of 14 years, 3 francs and 50 centimes (67.5 cents).
(5) For other members—
Three francs and fifty centimes (67.5 cents) for insured male persons and 4
francs (77.2 cents) for insured female persons, when the fund insures medical
attendance and medicines, or a cash benefit for loss of time of at least 1 franc
(19.3 cents) per day.
Five francs (96.5 cents) if the fund insures at the same time medical at­
tendance and medicines and a cash benefit for loss of time of at least 1 franc
(19.3 cents) per day.
The foregoing subsidies shall be increased by 50 centimes (9.7 cents) for the
members to whom the fund guarantees benefits, in case of sickness, for at least
360 days in a period of 540 consecutive days.
In addition, the Confederation shall grant to the funds a subsidy of 20 francs
($3.86) for each case of confinement; this is increased to 40 francs ($7.72)
for the confined women who are entitled to a nursing benefit as provided for in
article 14, paragraph 4.
A rticle

36.

The total annual subsidies paid to any fund in pursuance of article 35 shall
not exceed one-half of the sum of the contributions of insured persons and
voluntary donations placed to the account of operations.
In case a person is a member of more than one fund, the Federal subsidy
shall be paid only to the fund in which that person has held membership for
the longest time.
The Federal Council may abolish the Federal subsidies for insured persons
residing abroad.
A rticle 37.

In the mountainous districts, where communication is difficult and the popu­
lation sparse, the Confederation shall pay to the funds a supplementary subsidy
of 7 francs ($1.35) as a maximum for each insured person for an entire year.
In these districts the Confederation shall grant to the Cantons, for their own
use or for their communes, subsidies in favor of institutions which aim to lessen
expenses for the treatment of sick persons or confined women. These subsidies
must not exceed the total amount of the sums furnished by the Cantons, the
communes, or third persons, or 3 francs (57.9 cents) a year per capita of the
population in question. The Federal Council may make the grant of a sub­
sidy contingent on the creation of a fund in the commune.
A rticle 38.

If the Cantons or communes declare that insurance in case of sickness shall
be compulsory, either generally or for certain classes of persons, and if they
assume the responsibility of the payment of all or a part of the contributions
of indigent insured persons, the Confederation shall grant subsidies equal to
one-third of their disbursements.
A rticle 39.

The Federal Council shall determine each year the amount of the Federal
subsidies according to the statements prepared by the cantonal governments.
The Federal Council shall decide all questions in relation to Federal subsidies.
A rticle 40.

The officers of a fund who intentionally misrepresent the condition of the
fund in their financial accounts or other reports designed for the information
of the Federal authority or of the Swiss National Accident Insurance Fund,
shall be punished by a maximum fine of 500 francs ($96.50), or by imprisonment
not exceeding three months; these penalties may be combined. In case of repe­
tition within three years subsequent to the last conviction, the fine may be
increased to 1,000 francs ($193) and the imprisonment to six months.



SICKNESS AND ACCIDENT INSURANCE LAW OP SW ITZERLAND.

13

Suit shall be brought by the cantonal authorities, on complaint of the Federal
Council. The general provisions of the Federal penal code of February 4,1853,
are applicable^
The decisions of the cantonal authorities shall be communicated in writing
to the Federal Council, which may have recourse to amendment or appeal
conformably with articles 158 et seq. of the law of March 22, 1893, concerning
the organization of the Federal judiciary.

TITLE II.—ACCIDENT INSURANCE.
A. SWISS NATIONAL ACCIDENT INSURANCE FUND.

A rticle 41.

The Confederation shall maintain a “ National Accident Insurance Fund at
Lucerne.” (Caisse nationale suisse d’assurance en cas d’aCcidents & Lucerne.—
Schweizerische Unfallversicherungsanstalt in Luzern.—Istituto nazionale
svizzero di assicurazione contro gli infortuni a Lucema.)
This fund shall conduct insurance on the mutual plan.
It shall have the rights of a legal person, and its seat shall be in Lucerne.
In the present law the abbreviated expression, “ National Fund,” designates
the Swiss National Accident Insurance Fund at Lucerne.
A rticle 42.

Its organization shall consist of:
The administrative council and its committees.
The directorate.
The agencies.
A rticle 43.

The administrative council shall consist of 40 members, to wit:
Twelve representatives of compulsorily insured persons.
Sixteen representatives of heads of private enterprises, employers of the
compulsorily insured persons.
Four representatives of voluntarily insured persons.
Eight representatives of the Confederation.
The members of the administrative council shall be named by the Federal
Council for a period of six years under the advice of trade-unions which extend
over a considerable portion of the country. The administrative council shall
effect its own organization.
A rticle 44.

The administrative council is especially authorized:
(a) To decree the fundamental rules of the National Fund.
(&) To make suggestions to the Federal Council concerning the composi­
tion and nomination of the directorate.
(c) To appoint its committees.
( 4 ) T o determine the classes of risks, the degrees of risks, and the pre­
mium rates.
(e) To decide appeals in respect to matters of the classification of enter­
prises and of the insured persons.
(/) To establish the bases for calculating the reserve.
( g ) To make suggestions as to the terms of voluntary insurance and the
voluntary insurance of third persons.
(ft) To regulate the cooperation of the sick funds.
(i) To make up the annual budget of administration expenses.
(ft) To audit and approve the annual reports and accounts.
(1) T o supervise the development of the National Fund.
The regulations determine the other functions of the council, as also the
number, composition, and functions of its committees; they may confer on the
latter certain functions of the council.



14

B U LLETIN OF TH E BUREAU OF LABOR,

A rticle 45.

The directorate shall be named by the Federal Council upon the recommenda­
tion of the administrative council; the Federal Council is not bound by that
recommendation.
The directorate shall manage and represent the National Fund.
A r tic le

46.

The National Fund shall open agencies in the different parts of the country;
each Canton shall be entitled to one agency.
Within the limits of their powers, the agencies shall represent the National
Fund.
A rticle 47.

On their application, trade unions extending over a considerable portion of
the country shall be called by the National Fund to give their opinion in advance
on the following subjects:
(a) Determination of risk classes, degrees of risk, and premium rates.
(b) Determination of the bases of the mathematical reserves.
(c) Prevention of accidents.
( 4 ) Conditions of voluntary insurance and voluntary insurance of third
persons.
A rticle 48.

The National Fund shall keep a separate account for each of the following
branches:
( a ) Occupational accidents under compulsory insurance.
(b) Nonoccupational accidents under compulsory insurance.
(c) Voluntary insurance.
(d) Voluntary insurance of third persons.
It shall carry to the credit side of the accounts the premiums received for each
blanch, including the Federal subsidies for branches (b) and (c) to the amount
dhe for the current fiscal period. It shall carry to the debit side the benefits
granted to the insured, including the reserve for unliquidated losses, the por­
tion of the sick funds appropriated for premiums, and the contributions for the
losses of the sick funds.
The total amount of the provision for insurance shall include the actual
value of all expenses, which, according to the probabilities, will be imposed
upon the fund on account of accidents which have occurred up to the end of
the fiscal period (system of mathematical reserves).
The expenses of the administration, after deduction of the portion borne by
the Confederation, according to article 51, first paragraph, are to be divided
among the accounts in proportion to the amount of the premiums and of the
Federal subsidy received for each branch.
The balance for the fiscal period is to be divided among the accounts, subject
to the provisions of article 49, in proportion to the premiums and the Federal
subsidy received for each branch.
A rticle 49.

A reserve fund shall be established by means of annual deposits, of which the
administrative council shall fix the amount, under the form of a quota of the
premiums and of the Federal subsidy received for each branch. This quota
must be uniform for all branches.
These deposits shall be continued until the reserve fund amounts, at least, to
one-half the average sum of the premiums and of the Federal subsidy received
during the last five years.
Each branch of insurance must pay interest on the sums drawn from the
reserve fund to cover deficits resulting from its operation, and shall repay these
sums within a period fixed by the administrative council.
A rticle 50.

The National Fund shall be placed under the superior supervision of the Con­
federation—such supervision to be exercised by the Federal Council.
The National Fund shall submit its organic regulations, Its reports, and
annual accounts to the Federal Council for its approval.




SICKNESS AND ACCIDENT INSTJBANCE LAW OF SWITZERLAND.

15

A rticle 51.

The Confederation shall reimburse the National Fund for one-half of its
expense of administration.
It shall furnish the National Fund a working capital of 5,000,000 francs
($965,000), which amount must be accounted for in the annual accounts.
It shall endow the National Fund with a capital of 5,000,000 francs ($965,000)
for the creation of a reserve fund.
It shall bear the expenses incurred by the National Fund before commencing
its business operations, excepting the outlay for the acquisition of real estate
and the cost of administering said real estate.
The sums mentioned in paragraphs 2 to 4 shall be deducted from the Federal
insurance fund.
A rticle 52.

The correspondence of the administrative council and of the directorate shall
enjoy the advantage of the postal franking privilege, as does that of the agen­
cies, so far as it is addressed to the National Fund and relates to the business
of the latter fund.
A rticle 53.

The National Fund shall be exempt from taxes except on its real property
that is not directly used for the insurance business.
Legal documents designed directly for the service of the National Fund shall
be exempt from all taxes.
The Federal court shall decide controversies arising from the application of
this article.
B.

cooperation of t h e recognized in s u r a n c e fu n d s i n

case of s ic k n e s s .

A rticle 54.

The National Fund may intrust the agency service to a sick-insurance fund
in the territory of the latter. It may be represented by the sick fund, especially
for the collection of premiums, notices, inquiries, supervision in case of accident,
and in the payments to be made to insured persons. The sick fund shall be
answerable for a conscientious execution of its orders.
The National Fund shall reimburse the sick fund for the expenses incurred
by it in executing its orders and grant it a remuneration in consideration of its
services.
The Federal Council shall fix the rate of remuneration in accordance with the
proposal of the National Fund, with the consent of representatives of the sick­
ness insurance funds.
A rticle 55.

In regard to medical treatment, the furnishing of drugs, and the payment of
cash benefits for loss of time, the National Fund may, for the first six weeks
following the accident, transfer to a sickness-insurance fund qualified for that
purpose the insurance of persons domiciled in the district of the latter fund.
The transfer shall be effected in due form by localities, by occupations, or by
enterprises.
So far as the provisions of the two preceding paragraphs permit the National
Fund shall select preferably those sick funds of which the persons affected are
members.
When a sick fund considers itself not in a position to accept the transfer it
may apply to the Federal Council within 20 days from the date of receiving the
notice of transfer.
A rticle 56.

The transfers shall be made by means of assignment to the sick fund of a
corresponding portion of the premiums and the payments of the Confederation
to the National Fund. That portion shall be determined according to a rate
which shall be fixed by the Federal Council on the proposal of the National
Fund, with the consent of representatives of the sick funds.



16

B U LLETIN OP TH E BUBEAU OP LABOB.

A rticle 57.

When a person whose insurance has been transferred to a sick fund is the
victim of an accident, the sick fund shall provide at its own expense the insur­
ance benefits during the first six weeks following the accident, and during that
time it shall exercise all the powers which belong to the National Fund.
The National Fund shall reserve the right of supervision.
The sick fund shall without delay advise the National Fund of every con­
troversy between it and the insured person or third persons.
A rticle 58.

The National Fund may at any time withdraw from the sick fund the duty
of providing benefits for an accident, the insurance for which has been trans­
ferred to the latter fund. In that case the sick fund shall reimburse the
National Fund for the latter’s expenditures, which are imposed upon the sick
fund by virtue of article 57.
A rticle 59.

During the first three years following the transfer the National Fund shall
bear three-fourths of the loss succeeding the said transfer, as the same is
shown in the annual accounts, and subsequently one-third of the losses com­
puted for periods of three years.
c.

com pu lsory in s u r a n c e .

A rticle 60.

There shall be insured in the National Fund all employees and laborers at
work in Switzerland:
1. In railway service, on steam vessels, and in the postal service.
2. In establishments subject to the Federal law of March 28, 1877, relating
to labor in factories.
3. In the enterprises of—
( a ) Building trades.
(b) Transportation by land and by water and rafting.
(c) Establishing and repairing telephone and telegraphic lines, installing
or removing of machines, and the installation of technical appa­
ratus.
( d ) Railroad building, tunneling, bridging, road making, waterworks,
excavating in pits and galleries, trench digging, and the operation
of mines, quarries, and gravel banks.
4. In industries which produce or make use of explosive materials.
In the present law the term “ enterprise ” comprehends the establishments,
the operations, and the industries above mentioned.
Within the meaning of the present law, persons with supervisory functions
are reckoned employees, and the apprentices, unpaid learners, and probationers
as laborers.
The Federal Council shall decide every dispute as to the character of an
enterprise in the meaning of paragraph 1. It may give to its decision a retro­
active effect from a date determined by itself. The decision of the Federal
Council is binding upon the courts.
-

A rticle 61.

An insured person temporarily employed abroad shall retain the benefit of
his insurance when there is no change of employer.
An employee or laborer temporarily at work in Switzerland in the pay of a
foreign enterprise is not to be insured.
A rticle 62.

The insurance becomes effective as soon as the employee or laborer enters
upon his duties pursuant to the engagement.
It ends on the third day subsequent to that when his right to wages terminates.
By special agreement the National Fund may extend the insurance beyond this
limit.




SICKNESS AND ACCIDENT INSURANCE LAW OP SW ITZERLAND.

17

A rticle 63.

The employer or his representative shall notify the National Fund, within
14 days, of the beginning or discontinuance of operation of every enterprise
mentioned in article 60.
In case of inexcusable delay in the notification of opening the premiums for
occupational accidents shall be doubled- during the period of such delay.
In case of inexcusable delay in the notification, of discontinuance the premiums
for occupational accidents, computed according to the average wage payments
of the last 10 days of labor, shall continue to run until the moment of
notification.
A rtici* 64.
e

In every enterprise named in article 60 the employer or his representative
must keep the pay rolls up to date and in good order, giving exact information
concerning the conditions of employment, the wages, and the number of days of
labor for every employee or laborer of the enterprise.
The employer or his representative must give to the agents of the National
Fund, whenever required, supplementary information concerning everything
relative to insurance and deliver to them the pay rolls as well as all other data
serving to verify said pay rolls.
These agents shall have free access to all shops and yards of the enterprise
during working hours. They shall preserve absolute secrecy respecting all of
their observations which have no relation to accident insurance.
A rticle 65.

In every enterprise specified in article 60 the employer or his representative
shall take all measures which experience has shown to be necessary and which
the advance in science and the circumstances will permit to be applied, in order
to prevent sickness and accidents.
The National Fund may order any useful measure after consulting the inter­
ested parties, and the latter may appeal to the Federal Council within 20 days.
The Federal Council shall regulate the cooperation of Federal factory in­
spectors in the matter o f prevention of accidents, as well as in the application
of this article to the enterprises subject to the special provisions of the Federal
law on the prevention of accidents.
A rticle 66.

Whoever intentionally violates articles 64 and 65 or the regulations promul­
gated for the enforcement of these articles shall be punished by a maximum
fine of 500 francs ($96.50) or by imprisonment not exceeding three months;
these penalties may be combined. In case of repetition within three years
following a prior conviction, the fine may be increased to 1,000 francs ($193)
and the imprisonment to six months.
The employer is responsible for the payment of the fine imposed upon his
representative.
Suits shall be brought by the cantonal authorities, on complaint of the direc­
torate of the National Fund. The general provisions of the Federal penal code
of February 4,1853, are applicable.
The decisions of the cantonal authorities shall be communicated in writing
to the directorate of the National Fund. The latter may appeal from these
decisions to a higher court, conformably to the cantonal and Federal laws of
procedure.
A rticle 67.
The National Fund shall insure against the risks of accidents, occupational or
nonoccupational, followed by illness, invalidity, or death.
Every bodily injury suffered by an injured person is reckoned as an occu­
pational accident if received:
( a ) In the course of work performed by him under direction of the head of
the enterprise subject to insurance, or one of his agents.
( b ) In the course of a service undertaken by the insured in the direct or
indirect interest of the enterprise, and with the presumed assent of the employer
or of his representative.




18

BU LLETIN OF TH E BUREAU OF LABOR,

(c )
During an interruption of work, as also before or after work, while the
insured person, without fault on his part, happens to be either on the premises
or in the danger zone o f the enterprise.

Any other bodily injury resulting from an accident is reckoned as a nonoccupational accident. The National Fund may debar from insurance extraor­
dinary risks and hazardous enterprises.
A rticle 68.

The Federal Council shall prepare a list of substances, the production or
employment of which occasions dangerous diseases. Every disease exclusively
or essentially due to the action of one of these substances in an enterprise sub­
ject to insurance is deemed an accident within the meaning of the present law.
A rticle 69.

Every insured victim of an accident which is followed or will probably be
followed by sickness or invalidity must without delay apprise his employer or
his employer’s agent. When the accident is followed by death, the same obli­
gation rests conjointly upon the surviving heirs who are entitled to an annuity.
For every notice of an accident the employer or his agent shall deliver a
certificate, indicating the date of the notice. If this certificate is refused, notice
of the accident may be given without expense to the local authority, who shall
transmit it to the National Fund.
As soon as the employer or his agent learns that an insured person in his
employ is the victim of an accident which has been or will probably be followed
by sickness, invalidity, or death, he must without delay report the same to the
National Fund.
A register detailing all accidents happening to insured persons shall be kept
up to date in every establishment.
A rticle 70.

An inexcusable delay in giving notice of an accident (art 69, first para­
graph) or in reporting an accident (art. 69, par. 3) shall involve, in the
first case, the total or partial forfeiture of cash benefits provided for the
period prior to the notice, and, in the second case, the obligation of the em­
ployer to repay the cash benefits to the National Fund; furthermore, the de­
linquents may be made jointly responsible for damages caused to the National
Fund by the delay.
The National Fund may refuse to pay any benefits if, in consequence of an
inexcusable delay on the part of the insured or of his survivors, it has not
been advised of the accident or death within three months.
A rticle 71.

As soon as informed of an accident, the National Fund shall investigate its
circumstances, its causes, and its results; for this purpose the fund may have
recourse to the cantonal authorities. In like manner the insured person or his
heirs may themselves cause the taking of the necessary evidence.
Interested persons have the right to be informed of the contents of the re­
port.
The National Fund shall at all times take the necessary measures for the
proper treatment of the insured. Every inexcusable nonobservance of these
measures may lead to the partial or total withholding of insurance benefits for
the future.
A rticle 72.

The insurance provisions shall include:
( a ) Medical attendance and drugs and indemnity for loss of time.
(b) Annuities for invalidity.
( c ) Funeral expenses.
(d) Survivors’ annuities.
A rticle 73.

Immediately after an accident, and during the illness that results from it,
the insured is entitled to medical attendance, drugs, and other remedial treat­
ment, to the surgical apparatus of which he has need, and to necessary travel­
ing expenses. Articles 15 to 25 are applicable by analogy.




SICKNESS AND ACCIDENT INSURANCE LAW OF SWITZERLAND.

19

If the services of a nurse are necessary to the insured, the National Fund
shall supply the need.
Instead of providing medical attendance, drugs, and the services of a nurse
at home, the National Fund may order a transfer to a hospital, having regard,
however, for the wishes of the insured or of his family.
A rticle

74.

From the third day after the accident, and during the resulting illness, the
insured person is entitled to indemnity for loss of time.
This indemnity shall correspond to 80 per cent of the earnings of which the
insured person is deprived in consequence of the illness, and includes the
regular supplementary allowances. Earnings are computed not to exceed
14 francs ($2.70) a day.
If payments are made for the same accident by other insurers, the indemnity
for unemployment can not exceed the difference between the amount of these
payments and the total wages of which the insured person has been deprived.
A rticle

75.

To meet the expenses of the sojourn of the insured person in a hospital, or
of a nurse at home, the National Fund may retain, at most, three-fourths of
the indemnity for loss of time, or one-half of it if the insured person has a
family dependent upon him.
A rticle

76.

If there is no reason to expect a distinct improvement in the condition of the
insured person from the continuation of medical treatment, and if the accident
is followed by presumably permanent disability, an annuity for invalidity
shall be substituted for the foregoing benefits. The National Fund shall also
supply the insured person with necessary surgical appliances.
A rticle

77.

For total disability the annuity is fixed at 70 per cent of the annual earn­
ings of the insured. If the infirmity requires the services of a nurse or other
special attention the annuity may be increased, so long as this condition con­
tinues, up to the entire amount of the earnings.
If the disability is only partial the annuity shall be proportionately reduced.
A rticle

78.

The annual earnings are understood to mean the earnings of the insured
person in the enterprise subject to insurance during the year preceding the
accident.
The regular supplementary allowances are computed as salary.
The annual wage of nohsalaried insured persons is reckoned as equal to the
lowest annual wage of the salaried laborers in the same enterprise.
If at the time of the accident the insured person is not yet earning the full
wages of an insured person of his trade, his annual earnings are calculated on
the basis of such wages from the period when he would probably have attained
thereto had he not met with the accident.
The annual earnings are reckoned not to exceed 4,000 francs ($772).
A rticle

79.

If during the year preceding the accident the earnings of the insured have
been reduced by reason of military service or of sickness, the earnings shall be
determined according to the amount which the insured person would have
earned if he had been neither ill nor in the military service.
If the insured person has not been connected with the enterprise during the
entire year, account is taken of the amount which insured persons of his class
have earned during the remainder of the year in the enterprise, or in a similar
enterprise in the locality.



20

B U LLETIN OP TH E BUREAU OF LABOR,

If the operation of the enterprise has been interrupted in the course of the
year, the wages earned by the insured person outside of the enterprise during
the interruption are taken into account, with the amount of the average salary
which he has earned in the enterprise during the rest of the year.
A rticle 80.

If, after the determination of the annuity, the degree of disability undergoes
an essential change, the annuity shall be proportionately increased or reduced
for the future or may be discontinued altogether.
During the three years following the establishment of the annuity it may be
revised at any time; afterwards at the expiration of the sixth and ninth years.
If the revision requires an examination or medical attention involving a loss
of earnings for the insured person, the annuity shall be temporarily replaced
by the benefits specified in articles 73 to 75.
A rticle 81.

After the establishment of the annuity, the National Fund may, under the
conditions prescribed by article 80, paragraph 2, order a new treatment to be
instituted, if there is reason to expect a considerable improvement of the insured
person in respect to his capacity for labor. Any unjustifiable refusal to follow
this treatment may cause the total or partial withholding of insurance benefits
for the future.
During treatment the annuity shall be replaced by the provisions specified in
articles 73 to 75.
A rticle 82.

If there is no reason to expect a sensible improvement in the condition of
the insured from the continuance of medical treatment, but if it seems probable
that the patient will recover his capacity for labor and resume work after the
liquidation of his claims, a lump-sum payment, replacing the annuity, shall be
substituted for the foregoing benefits.
The lump sum shall be equal to the actual value of an annuity, uniform or
decreasing, and running for three years at a maximum, calculated on the basis
of the annual earnings of the insured person, taking into consideration his state
of health and the degree of his disability at the time of determining the
indemnity.
A rticle 83.

If the insured person dies as a result of the accident, the National Fund shall
reimburse to the survivors the funeral expenses to the amount of 40 francs
($7.72).
A rticle 84.

Those entitled to an annuity of 30 per cent of the annual wages of the insured
person are:
(a) The widow, during her widowhood.
(b) The widower, if already infirm, or if a permanent incapacity for labor
supervenes within five years after the death of the insured wife, during his
widowerhood.
The surviving consort is entitled to an annuity only in case the publication
of the marriage agreement antedates the accident. If, at the time of the acci­
dent, the victim was divorced or separated by virtue of a decree a mensa et
thoro, the surviving consort is entitled to an annuity amounting only to what
the insured person had been compelled to pay as alimony.
A rticle 85.

In addition, every legitimate child, including posthumous children, is entitled
to 15 per cent of the annual earnings of the insured person. If the child by this
death or by a subsequent bereavement loses both father and mother, the annuity
shall be increased to 25 per cent. This shall be paid until the completion of the
sixteenth year of age; or, if at this age the child is permanently incapacitated
for labor, the annuity shall continue till 70 years have elapsed from the birth
date of the insured person.



SICKNESS AND ACCIDENT INSUBANOE L A W OP SW ITZEBLAND.

21

Children who had been adopted or legitimatized at the time of the accident
have the same status as legitimate children.
This applies also to illegitimate children with reference to the rights which
are derived from the death of their mother.
Every illegitimate child whose kinship has been established by an executory
court decision, or by a written and credible acknowledgment on the part of the
insured person, is also considered as a legitimate child with reference to the
rights which are derived from the death of his father.
A rticle 86.

Ascendants in a direct line are entitled during their lives, and the brothers
and sisters until the age of 16 years, to a total annuity of 20 per cent of the
annual earnings of the insured person; this annuity is distributed per capita
among all parties concerned.
A rticle 87.
The annuities of survivors shall not, altogether, exceed 60 per cent of the
annual earnings of the insured person.
The total amount of the annuities of the consort and children is scaled down
to 60 per cent by a proportional reduction should there be occasion therefor.
The extinction of the annuity of one of these relatives shall inure to the benefit
of the others proportionately, within the limits of their rights.
The ascendant and collateral relatives may exercise their rights only in respect
to the difference between 60 per cent of the annual earnings of the insured
person and the total amount of the annuities of the consort and of the children.
No ascendant or collateral kinsman shall enjoy the benefit of an annuity greater
than that of a child, when the two annuities run simultaneously. The extinc­
tion of the annuity of an ascendant or collateral relative shall inure to the
benefit of the others proportionately, within the limits of their respective rights.
A rticle 88.

In case of remarriage, the annuity of the widow shall be converted into a
lump-sum payment of triple its annual amount. In the application of articles
84 to 87, the annuity shall be considered as continuing for three years, counting
from the date of the conversion.
A r t ic l e

89.

The National Fund has the right to fix for the survivors, by means of a pub­
lished notice, a limit of at least six months, during which they shall make them­
selves known under pain of debarment.
A rticle 90.

Benefits shall be granted to insured persons of Swiss nationality and to their
survivors and also to insured foreigners resident in Switzerland and to their
survivors, if the legislation of the countries of which they are citizens offers to
the Swiss and their survivors, in the matter of providing against sickness and
accident, reciprocal advantages equivalent to those which the present law
secures. The Federal Council shall designate the countries that fulfill this
condition.
Insured persons who are citizens of other countries are entitled to medical
attendance and drugs, to the cash benefits for loss of time, and to three-fourths
of the annuity for invalidity. Their survivors are entitled to the funeral ex­
penses and the consort and the children to three-fourths of the annuities of the
survivors. The difference between these benefits and those provided in articles
77, 82, and 84 to 87 is transferred to the assets of the Confederation to be
counted with its subsidies to the National Fund.
A rticle 91.

The cash benefits of the National Fund shall be subject to a proportional
reduction if the illness, invalidity, or death is only in part Jthe result of an
accident insured against by the fund.



22

BU LLETIN OF THE BUREAU OF LABOR.

A rticle 92.

No benefit shall be granted for an accident which gives rise to a compensation
claim in virtue of the Federal law of June 28, 1901, concerning the insurance
of soldiers against diseases and accidents.
A rticle 93.

Except when there exists an express agreement to the contrary, the cash
benefit for loss of time shall be payable at the end of each week; in case of
urgency, advance installments may be supplied during the week.
Annuities for invalidity and those of survivors are payable the first day of
every month in advance. If an annuity begins to run subsequently to the first
day of the month, the portion due for the remainder of the month shall be
demandable on the first day of the following month.
If an annuity is extinguished or modified in the course of a month the reim­
bursement thereof or the adjustment of the difference for the remainder of
the month is not required.
A rticle 94.

If the beneficiary of an invalidity annuity is the victim of a new accident
included within the scope of insurance and followed only by illness, the first
annuity remains unchanged and has no influence on the cash benefit for loss of
time payable on account of the new accidjent. The cash benefit is computed on
the basis of the earnings of the insured at the time of the new accident
In all other cases where the beneficiary of a cash benefit for loss of time or
of an invalidity annuity is the victim of a new accident comprehended in the
insurance contract, the rights originating in the different accidents are joined,
and for the future the insurance benefits are calculated on the basis of the
wages which the insured would probably have earned at the time of the new
accident had he not suffered from the previous accident Article 78, paragraph
4, is applicable by analogy.
A rticle

95.

The National Fund may at any time redeem, at its actual value, any annuity
of invalidity or of survivors below 10 francs ($1.93) a month, or that of a
beneficiary residing abroad after the lapse of at least one year.
In any other case the redemption may take place only by agreement between
the establishment and the beneficiary.
Every annuity redeemed with the consent of the beneficiary is uncondi­
tionally canceled. On the other hand, the invalid whose annuity has been
redeemed without his consent may demand the grant of a supplementary
annuity for the future if, after the redemption, his disability is essentially
aggravated.
In the application of articles 84 to 87 the redeemed annuity of survivors is
computed to continue in force until the moment when, according to the prob­
ability taken as a basis of redemption, it would be extinguished in default of
redemption.
A rticle 96.

The right to insurance benefits, as well as the amounts received as benefits,
may be neither attached, garnisheed, nor included in the assets in case of
bankruptcy. All pledges and assignments of the right to insurance benefits are
null and void.
The National Fund may take measures to secure the employment of its cash
benefits for the maintenance of the beneficiary or the persons dependent on him.
The National Fund may strike a balance between the amount of the cash
benefits which it owes to an insured person or to a survivor (excepting the
funeral expenses) and any claim which it holds against the same person.
A rticle 97.

The National Fund may declare to be forfeited any arrears of annuity which
have not been claimed by the beneficiary, or in his name, within a period of
three months, counting from the time whbn they became due.



SICKNESS AND ACCIDENT INSURANCE LAW OP SWITZERLAND.

23

The right to an annuity already established is extinguished and shall be
annulled by the National Fund if, after two years, the amounts due have not
been claimed by the beneficiary or in his name.
A rticle 98.

If the insured person caused the accident intentionally both he himself and
his survivors are deprived of all right to the insurance benefits other than the
funeral expenses.
The rule holds good in the case of a survivor who intentionally or by serious
fault caused the accident.
If the insured person caused the accident by serious fault, the insurance
benefits, other than the funeral expenses, shall be reduced to an extent com­
mensurate with the degree of fault
A rticle 99.

Conformably with articles 62 to 67 of the code of duties (Book 5, Swiss Civil
Code) the National Fund may require restitution in cash of the value of any
benefits which it has erroneously paid.
Whoever by fraudulent scheming procures payment or seeks to procure pay­
ment of benefits to which he is not entitled, or who becomes accessory to like
schemes, shall be prosecuted before the cantonal criminal courts.
A rticle 100.

The National Fund shall succeed by subrogation, for the amount of the
benefits granted, to the rights of the insured person or of the survivors against
any third party responsible for the accident.
A rticle 101.

The National Fund shall receive premiums for insurance against both occu­
pational and nonoccupational accidents.
A rticle

102.

For the purpose of determining the premiums for occupational accidents the
various kinds of enterprises shall be divided into classes of risks according to
their dangers from occupational accidents. The classes shall be subdivided in
respect to the degrees of risks, taking into account measures for the prevention
of accidents and other circumstances which -affect the risks. Each enterprise
shall be assigned by the directorate to a- special grade of risks, insured per­
sons of the same enterprise may also be assigned by groups to several grades.
A rticle 103.

Of its own motion, or at the request of the employer or his agent, and guided
by past experience, the directorate may, not later than one month before the
commencement, of a fiscal year, assign an enterprise to another class or to
another grade of risks, to date from the following fiscal year.
In case of violation of article 65 the directorate may at any time assign the
enterprise to a higher grade of risks. It shall •determine, if there is occasion,
the date from which the new assignment is to have a retroactive effect.
The employer or his agent shall advise the National Fund, within one week,
of every change in the enterprise which increases the risks of accidents. The
directorate shall revise the classification and, if there is occasion, determine
the date from which the new classification shall have a retroactive effect.
Delay or omission of the notification shall absolve no one from paying pre­
miums for occupational accidents according to the new classification and for
the time after it becomes effective. In case of culpable negligence the premiums
are doubled for the period of delay.
A rticle

104.

Decisions made by the directorate pursuant to articles 102 and 103 shall be
communicated in writing to the employer or his agent.
Within a period of 20 days, dating from this communication, tlie employer
or his agent may appeal to the council of administration; the appeal is devoid
of any effect in suspending the payment of premiums.



24

B U LLETIN OF TH E BUREAU OF LABOR.

A rticle 105.

The decisions concerning classification, when once definitely made, bind the
courts.
A rticle 106.

For the purpose of determining the premiums for nonoccupational accidents
insured persons are divided by the directorate into classes of risks according
to their dangers from nonoccupational accidents.
Articles 103 (first paragraph), 104, and 105 are applicable by analogy to this
classification of the insured. Communications shall be addressed to the em­
ployer or his agent for the purpose of transmission to the insured persons. The
insured person has the right to demand a new classification and to make an
appeal.
A rticle 107.

The table of rates for each class or grade of risks shall indicate the propor­
tion of the earnings payable as premiums (premium rate).
The rates of premiums shall be determined in such a manner that each class
or grade of risks may furnish in premiums an amount presumably equal to the
expenses which that class or that grade will cause to the National Fund.
On the basis of past experience the rates of premiums may be changed two
months before the end of a fiscal period. The new rates take effect at the begin­
ning of the following fiscal year.
A rticle 108.

The premiums for occupational accidents shall be paid by the employer. Any
contract imposing on the insured person a portion of these premiums is null
and void.
Premiums for nonoccupational accidents shall be paid three-fourths by the
insured person and one-fourth by the Confederation.
A rticle 100.

The premiums for occupational accidents and the premiums for nonoccupa­
tional accidents (the latter after deduction of the Federal subsidy) shall be
paid to the National Fund by the employer, subject to the provisions of
article 113.
A rticle 110.

The amount of the premiums, provisionally estimated by the National Fund
in advance for an entire year’s insurance, shall be brought to the employer’s
attention in writing.
The provisional premiums are payable within a month, and at the latest, by
the commencement of the insurance year. On condition of a suitable increase
in the amount, the employer may make his payments by installments semi­
annually or quarterly. In exceptional cases, the National Fund may authorize
monthly payments. Appeals to the courts shall have no effect to suspend the
payment of the premiums.
If the employer is in arrears, the premiums for occupational accidents shall
be increased by one-fourth during the period of delinquency.
A rticle 111.

If within the year it shall appear probable that the actual amount of the
premiums will be considerably greater than that which has been provisionally
fixed, the National Fund may require an intermediate payment.
Paragraphs 2 and 3 of article 110 are applicable by analogy.
A rticle 112.

After the close of the year, the amount of the premiums shall be finally com­
puted by the National Fund according to the actual total of the year’s salaries.
This total shall be derived from the pay rolls. If the rolls do not afford reliable
evidence, the National Fund shall have recourse to other means of information,



SICKNESS AND ACCIDENT INSURANCE LAW OP SW ITZERLAND.

25

and tlie employer forfeits the right to contest the amount fixed. The insuffi­
ciency or excess of the amount paid shall be adjusted by a supplementary levy,
or a compensatory allowance at the time of the next provisional payment.

The regular supplementary grants are to be included in the calculations. The
daily wage shall be considered only to the amount of 14 francs ($2.70).
A rticle 113.

The premiums paid by the employer for nonoccupational accidents, but ex­
cluding the increase provided for by article 110, paragraph 2, shall be withheld
from the salaries by the employer; this deduction, however, for a premium due
for a wage period may be made only from the amount of wages falling due for
that period, or for that which immediately follows. Every agreement derogat­
ing from these provisions to the detriment of insured persons is void.
A rticle 114.

The Federal subsidy for nonoccupational accidents shall be provisionally esti­
mated by the National Fund for an entire year, and collected in advance.
After the close of the year, the Federal subsidy shall be finally computed by
the National Fund according to the actual total of the premiums for non*
occupational accidents. Any insufficiency or excess of the amount collected
shall be adjusted by supplementary collections or compensatory repayments.
D. VOLUNTARY INSURANCE.
A rticle

115.

On application, the National Fund shall insure against the risks of accidents
every person not compulsorily insured who is at least 14 years of age, so long
as such person resides in Switzerland.
A rticle

116.

The Federal Assembly shall fix the conditions of voluntary insurance. It
shall take into consideration the special circumstances of agriculture and other
pursuits concerned in this insurance, especially in respect to whatever relates
to the notifications and declarations of accidents, the prevention of accidents,
the insurance benefits, and the computation of premiums.
The National Fund shall submit the necessary plans to the Federal Council.

A rticle 117.

The Confederation shall contribute, by means of an annual subsidy, one*
eighth of the total premium for the insurance of every person whose annual
income does not exceed 3,000 francs ($579).
The subsidy of the Confederation for premiums of voluntary insurance shall
be provisionally estimated by the National Fund for an entire year and collected
in advance.
After the close of the year, the Federal subsidy shall be finally computed
by the National Fund according to the actual total of the premiums. The in­
sufficiency or excess of the sum received shall be adjusted by supplementary
collections or compensatory reimbursements.
e . vo l u n t a r y in s u r a n c e of t h ir d persons .

A rticle 118.

The heads of the enterprises named in article 60, as well as the heads of
other enterprises who are themselves insured with all their employees and
laborers conformably to article 115, may insure third persons in the National
Fund on their own account against the results of accidents for which they are
civilly responsible in case of slight fault on their part.
The injured person has a right of action against the National Fund inde­
pendent of that of the person procuring the insurance.



26

B U LLETIN OP TH E BUREAU OP LABOR.
A bticle

119.

The Federal Assembly shall establish the conditions of the voluntary insur­
ance of third persons.
The National Fund shall submit the necessary plans to the Federal Council.
A Federal subsidy may be granted for this insurance only by legislative
action.
F. COURTS.
A r t icle

120.

Each Canton shall designate a single tribunal to decide in the first instance:
( a ) Controversies between an insured person or a third person and the
National Fund, or a sickness fund, concerning the insurance provisions specified
in title two of the present law.
(&)
Controversies concerning the claims which the National Fund or a sick­
ness fund brings in virtue of title two of the present law, with the exception
of actions founded on article 100, which shall be referred to the ordinary courts.
(c)
Controversies between the National Fund and a sickness fund concerning
claims which one < f the parties brings pursuant to the present law.
5
The actions specified in the present article and permitted against the National
Fund may be brought, at the option of the applicant, at the place of his resi­
dence in Switzerland or at the seat of the National Fund.
A rticle

121.

In respect to these controversies the Cantons shall provide that the procedure
be as simple and expeditious as possible; they shall accord to the indigent liti­
gant, at his request, the benefit of legal assistance, as well as exemption from
all bonds, pledges, costs of expert testimony, court fees, and stamp duties.
The provisions decreed by the Cantons for the execution of the present article
are subject to the approval of the Federal Council.
A rticle

122.

The Confederation shall create a Federal insurance court to which may be
referred the decisions of the cantonal courts of primary jurisdiction.
The Federal Assembly shall determine the organization and procedure of the
insurance court; it shall appoint the judges for a term of six years.
The insurance court shall have its seat at Luzerne; it may also hold sessions
elsewhere.

TITLE HI.—GENERAL AND TEMPORARY PROVISIONS.
A rticle 123.

The sums which have been paid or which shall be paid to the Federal insur­
ance fund shall be exclusively appropriated to insurance against sickness and
accidents, especially as a guaranty of the cash benefits which the present law
Imposes on the Confederation.
A rticle 124.

The decisions rendered by the Federal Council pursuant to the present law
are not subject to appeal.
A rticle

125.

The time limits fixed by the present law are to be understood as full days.
If the last day falls on a Sunday or a legal holiday, the time limit expires
on the first following working day.
The notifications must have reached their destination or have been sent to
the Swiss post at the latest on the last day of the limit period.
A rticle

126.

Anyone affiliated with any Swiss sickness insurance fund whatsoever at the
expiration of one year from the time when the present law becomes effective
may avail himself of the privileges specified in articles 7 to 10 as if he were a
member of a recognized fund.



SICKNESS AND ACCIDENT INSURANCE LAW OP SW ITZERLAND.
A rticle

27

127.

Enterprises in existence when the present law becomes effective shall be
deemed open for business from that time.
A rticle

128.

All provisions of Federal or cantonal laws or ordinances inconsistent with
the present law are repealed, especially:
Articles 4 and 5, letter ( d ) o i the Federal law of March 23, 1877, on labor in
factories.
The Federal law of June 25, 1881, concerning the civil liability of manufac­
turers, and the Federal law of April 26, 1887, concerning the extension of civil
liability.
Article 40 of the Federal law of June 24, 1902, concerning electrical installa­
tions with weak and strong currents.
The Federal law of March 28, 1905, concerning the civil liability of railway
enterprises and of steamboat and mail service; likewise article 95 of the Federal
law of April 5, 1910, concerning the Swiss postal service, so far as it relates to
accidents occurring to employees or laborers in these enterprises.
A rticle

129.

So far as the provisions of the Federal laws referred to in article 128 cease
to be applicable, they are replaced by those of the code of duties (Swiss Civil
Code, Book 5).
Nevertheless, when the insured person is the victim of an accident caused by
one of his kinsfolk, the author of the accident is civilly liable only if he caused
the accident intentionally or by a grave fault. The same is true.of the em­
ployer, as well as of every relative, employee, or laborer of the employer, if
the employer has paid the premiums for which he is responsible in compulsory
insurance, or, when the victim is voluntarily insured, if the employer has
assumed as his obligation, and actually paid, at least one-half of the premiums.
A rticle

130.

If the employee is a member of a recognized sickness insurance fund, and if
the employer bears at least one-half of the expenses, the cash benefit for loss
of time, due by the sickness fund may, in case of sickness, be deducted from the
salary due according to the tenor of article 335 of the code of duties (Swiss
Civil Code, Book Five).
In case of accident, the employee has no claim to the salary if he is compul­
sorily insured in the National Fund, and if the employer has paid the premiums
for which he is responsible.
The same rule applies in voluntary insurance, if the insurance benefits are
equal to those of obligatory insurance, and if the employer has assumed as his
obligation, and has actually paid at least one-half of the premiums. An ordi­
nance of the Federal Assembly shall determine the right to the salary in a case
where the insurance provisions differ from those specified in articles 72 et seq.
A rticle

131.

The Federal Council is charged with the execution of the present law; and,
with this end in view, it shall formulate the necessary regulations.
Enacted by the National Council, June 13, 1911.
Accepted by referendum, February 4, 1912.




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