Pursuant to the enabling legislation in the Labor and Employment Article of the Maryland Annotated Code, Section 9-802, this agency exists to encourage the hiring of workers with pre-existing disabilities by assuming financial responsibility for the combined effects of a pre-existing disability and an accidental workplace injury.
The Subsequent Injury Fund (SIF) reviews and investigates workers' compensation claims that involve pre-existing health conditions that substantially increase the disability of injured workers. The liability of employers' insurers is limited to compensation for the damages caused by the current injury, and the SIF incurs all additional liability from the combined effects of all injuries and/or conditions.
The SIF manages a non budgeted fund from which workers' compensation benefits are paid to eligible claimants. The income to the Fund is derived from assessments based upon awards of compensation for permanent disability which are paid by workers' compensation employers/insurers. The SIF's costs of operation are supported by the assessments mentioned above, making it a Special Fund agency.