Background

In addition, theoretically EII has three backgrounds. The first is the social compromise theory. Employees are compensated by EII on the condition that they give up litigations whereas employers are required to pay EII benefits to employees who suffer from industrial injuries or diseases regardless of their negligence. The payment of EII benefits excludes employers from the process of civil litigation. The second is the least social cost theory. The non-fault liability under EII is much more efficient in terms of time and cost than the judicial system which focuses on who is responsible for the accidents. The third is the occupational risk theory. In a broad sense, industrial accidents are inevitable under a capitalist system and employees should be compensated regardless of who bears the responsibility. Thus, the expenditure for industrial accidents should be considered as a part of production cost.