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  • Interpretation
  • No.279【Under Translation】
  • Date
  • 1991/05/17
  • Issue
    • In the provision of the Labor Insurance Act, relating to the premium subsidy provided by the provincial or city government to various categories of those insured with labor insurance, what does the term "provincial (city) government" refer to?
  • Holding
    •        In Article 15 of the Labor Insurance Act, relating to the premium subsidy provided by the provincial or city government to various categories of those insured with labor insurance, the term "provincial (city) government" refers to the city or province whose residents are covered under labor insurance and fall into the categories of (city) government, paragraphs 2 to 4 of the abovementioned Article, and is irrespective of whether such provincial (city) government has set up a Labor Insurance Bureau.
  • Reasoning
    •        The Taipei City Council, which submitted this request for interpretation, in its examination of the Taipei City Government*s proposed budget, questioned the interpretation of the Council of Labor Affairs, Executive Yuan, in relation to the Labor Insurance Act, which stipulated that the labor insurance subsidy should be included in the annual budget and contended that such interpretation was contrary to Article 5 of the Labor Insurance Act and therefore requested a uniform interpretation pursuant to Article 7 of the Law of the Council of the Grand Justices.
      
    •        The Labor Insurance Act in Article 15 provides that the insurance premium of the insured listed in Article 6, Paragraph 1, Subparagraphs 7 and 8; Article 8, Paragraph 1, Subparagraph 4; and Article 9-1, shall be subsidized by the provincial (city) government by 20-40%. The objective of the subsidy is to reduce the burden of insurance premiums on persons with no permanent employer or who are self-employed but are members of a trade union, fisherman*s union, temporarily employed marine crew who belong to a marine union or capitals* union, or persons whose employment has been terminated but voluntarily continue to subscribe to labor insurance and whose domiciles are located in the jurisdictions of the provincial (city) government in order to ensure their livelihood and promote the security of society. The provincial (city) government is under an obligation to provide such benefits to laborers.  The so-called "provincial (city) government" is the provincial (city) government whose residents are the insured workers of the abovementioned categories. As to the provision in Article 5 which states that: "prior to the establishment of the Central Labor Insurance Bureau, the nation may be divided into districts, and the provincial (city) government with a larger population of labor in a particular district may establish a labor insurance bureau to undertake (underwrite) labor insurance, " it is a provision which deals with the practical side of the matter and is unrelated to whether the provincial (city) government should directly set up a labor insurance bureau.
      
    • *Translated by BAKER & McKENZIE.
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