Although there has been an overall decline in workers’ compensation claims, the frequency of claims for motor vehicle accidents (MVA) has increased in recent years.
According to the National Council on Compensation Insurance (NCCI) in a new report, these accidents can be very severe and are responsible for a significant portion of fatal workers’ compensation claims.
“While workers compensation claims have been declining, motor vehicle accidents have been on the rise over the last five years,” said Jim Davis, author of the paper and NCCI director and actuary. “These often involve very serious injuries that can take their toll on injured workers and their families.” An MVA claim is 12 times more likely to result in a fatality than a non-MVA claim.
NCCI actuaries found that from 2011 to 2016, the frequency of all claims declined by 17.6 percent, while the frequency of MVA claims increased by five percent. Additionally, 41 percent of fatal workers’ compensation claims were the result of a motor vehicle.
As expected, certain classifications, which are predominantly based on the use of motor vehicles, such as truckers, taxi drivers, and salespersons, generate the majority of MVA claims.
According to the workers’ compensation rating organization, motor vehicle accident claims cost 80 percent to 100 percent more than the average claim because they involve severe injuries. These claims also tend to represent a higher share of the costliest claims. Over a five-year period, motor vehicle claims accounted for 28 percent of workers’ compensation claims above $500,000, versus just five percent of all claims.
While numerous factors may explain the rise in accidents, the NCCI report notes that it is “striking how the increasing popularity and use of smartphones coincides with this growing trend” of motor vehicle accidents. By the end of 2010, approximately 27 percent of all cell phones were smartphones but by the end of 2016, that figure had tripled to 81 percent, the report notes.
According to a publication by the National Safety Council, a minimum of 27% of crashes involve drivers talking and texting on cell phones. However, the report also states that “there is strong evidence to support that underreporting of driver cell phone use in crashes is resulting in a substantial underestimation of the magnitude of the public safety threat.”
The increase in motor vehicle accidents is not limited to workers’ compensation. NCCI found a similar pattern in the general population, with accidents generally increasing over the same time period, along with an increase in the number of traffic accident fatalities.