§ 97-40.1. Second Injury Fund. - North Carolina Statutes

§97‑40.1.  Second Injury Fund.

(a)        There is herebycreated a fund to be known as the "Second Injury Fund," to be heldand disbursed by the Industrial Commission as hereinafter provided.

For the purpose of providingmoney for said fund the Industrial Commission may assess against the employeror its insurance carrier the payment of not to exceed two hundred fifty dollars($250.00) for the loss, or loss of use, of each minor member in every case of apermanent partial disability where there is such loss, and shall assess not toexceed seven hundred fifty dollars ($750.00) for fifty percent (50%) or moreloss or loss of use of each major member, defined as back, foot, leg, hand,arm, eye, or hearing.

(b)        The IndustrialCommission shall disburse moneys from the Second Injury Fund in unusual casesof second injuries as follows:

(1)        To pay additionalcompensation in cases of second injuries referred to in G.S. 97‑33;provided, however, that the original injury and the subsequent injury were eachat least twenty percent (20%) of the entire member; and, provided further, thatsuch additional compensation, when added to the compensation awarded under saidsection, shall not exceed the amount which would have been payable for bothinjuries had both been sustained in the subsequent accident.

(2)        To pay additionalcompensation to an injured employee who has sustained permanent totaldisability in the manner referred to in the second paragraph of G.S. 97‑35,which shall be in addition to the compensation awarded under said section;provided, however, that such additional compensation, when added to thecompensation awarded under said section, shall not exceed the compensation forpermanent total disability as provided for in G.S. 97‑29.

(3)        To pay compensationand medical expense in cases of permanent and total disability resulting froman injury to the brain or spinal cord in the manner and to the extenthereinafter provided.

The additional compensationand treatment expenses herein provided for shall be paid out of the SecondInjury Fund exclusively and only to the extent to which the assets of such fundshall permit.

(c)        In addition topayments for the purposes hereinabove set forth, the Industrial Commission may,in its discretion, make payments from said fund for the following purposes andunder the following conditions:

(1)        In any case in whichtotal and permanent disability due to paralysis or loss of mental capacity hasresulted from an injury to the brain or spinal cord, the Industrial Commissionmay, in its discretion enter an award and pay compensation and reasonable andnecessary medical, nursing, hospital, institutional, equipment, and othertreatment expenses from the Second Injury Fund during the life of the injuredemployee in cases where the injury giving rise to such disability occurredprior to July 1, 1953, and the last payment of compensation has been madesubsequent to January 1, 1941. Such compensation and medical expense shall bepaid only from April 4, 1947, and after the employer's liability for compensationand treatment expense has ended, and in every case in which the injuryresulting in paralysis due to injury to the spinal cord occurred subsequent toApril 4, 1947, and prior to July 1, 1953, the liability of the employer and hisinsurance carrier to pay compensation and medical expense during the life ofthe injured employee shall not be affected by this section.

(2)        When compensation isallowed from the fund in any case under subdivision (1) of subsection (c), theCommission may in its discretion authorize payment of medical, nursing,hospital, equipment, and other treatment expenses incurred prior to the datecompensation is allowed and after the employer's liability has ended if fundsare reasonably available in the Second Injury Fund for such purpose afterpaying claims in cases of second injuries as specified in G.S. 97‑33 and97‑35. Should the fund be insufficient to pay both compensation andtreatment expenses, then the said expenses may, in the discretion of theCommission, be paid first and compensation thereafter according to thereasonable availability of funds in the fund. (1953, c. 1135, s. 2; 1957,c. 1396, s. 4; 1963, c. 450, s. 3; 1977, c. 457; 1991, c. 703, s. 11; 1993(Reg. Sess., 1994), c. 679, s. 6.1.)