Cost of accident's is divided into two, direct and indirect costs. According to a detailed study carried out by henrich indirect cost which represent all the incidental cost due to an accident is about 4 times the direct costs . Some studies even go up to 6 times the direct costs. Also individual accidents could be very costly particularly when the accident are serious or result in heavy damage to equipment.
Direct Cost:
a) Compensation paid to the injured
b) Medical expenses for his treatment
c) Insurance premium
Indirect Cost:
a) Lost time of injured employee- wages paid for workers other than paid under the workman's compensation Act.
b) Lost time of other employee - wages paid for worker other than paid under the workman's.
c) Lost time of foreman, supervisors and other executive : Time spent on activities about it.investigation and preparing reports ,setting claims, training or appointing a new worker.
d) Cost time spent by first aider & hospital staff.
e)Residential cost due to loss of production, profit etc.
f) Costs under employee welfare $ benefit system. other than compensation
g) over head charges: Expenses for light heat, rent and other items