Workers' Compensation Act.
§97-40.1. Second Injury Fund.
(a) There is hereby created a fund to be known as the "Second
Injury Fund," to be held and disbursed by the Industrial
Commission as hereinafter provided.
For the purpose of providing money for said fund the Industrial
Commission may assess against the employer or 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 a permanent partial disability where there is such loss, and
shall assess not to exceed seven hundred fifty dollars ($750.00)
for fifty percent (50%) or more loss or loss of use of each major
member, defined as back, foot, leg, hand, arm, eye, or hearing.
(b) The Industrial Commission shall disburse moneys from the Second
Injury Fund in unusual cases of second injuries as follows:
- To pay additional compensation in cases of second injuries
referred to in G.S. 97-33;
provided, however, that the original
injury and the subsequent injury were each at least twenty percent
(20%) of the entire member; and, provided further, that such additional
compensation, when added to the compensation awarded under said
section, shall not exceed the amount which would have been payable
for both injuries had both been sustained in the subsequent accident.
- To pay additional compensation to an injured employee who
has sustained permanent total disability 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 the compensation
awarded under said section, shall not exceed the compensation
for permanent total disability as provided for in
- To pay compensation and medical expense in cases of permanent
and total disability resulting from an injury to the brain or
spinal cord in the manner and to the extent hereinafter provided.
The additional compensation and treatment expenses herein provided
for shall be paid out of the Second Injury Fund exclusively and
only to the extent to which the assets of such fund shall permit.
(c) In addition to payments for the purposes hereinabove set forth,
the Industrial Commission may, in its discretion, make payments
from said fund for the following purposes and under the following
- In any case in which total and permanent disability due to
paralysis or loss of mental capacity has resulted from an injury
to the brain or spinal cord, the Industrial Commission may, in
its discretion enter an award and pay compensation and reasonable
and necessary medical, nursing, hospital, institutional, equipment,
and other treatment expenses from the Second Injury Fund during
the life of the injured employee in cases where the injury giving
rise to such disability occurred prior to July 1, 1953, and the
last payment of compensation has been made subsequent to January
1, 1941. Such compensation and medical expense shall be paid only
from April 4, 1947, and after the employer's liability for compensation
and treatment expense has ended, and in every case in which the
injury resulting in paralysis due to injury to the spinal cord
occurred subsequent to April 4, 1947, and prior to July 1, 1953,
the liability of the employer and his insurance carrier to pay
compensation and medical expense during the life of the injured
employee shall not be affected by this section.
- When compensation is allowed from the fund in any case under
subdivision (1) of subsection (c),
the Commission may in its discretion
authorize payment of medical, nursing, hospital, equipment, and
other treatment expenses incurred prior to the date compensation
is allowed and after the employer's liability has ended if funds
are reasonably available in the Second Injury Fund for such purpose
after paying claims in cases of second injuries as specified in
G.S. 97-33 and
the fund be insufficient to pay both
compensation and treatment expenses, then the said expenses may,
in the discretion of the Commission, be paid first and compensation
thereafter according to the reasonable 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.)
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of Contents page for Chapter 97. Workers' Compensation Act.
Text of Chapter 97. Workers' Compensation Act.
N.C. Industrial Commission ·
4340 Mail Service Center ·
Raleigh, NC 27699-4340
Main Telephone: (919) 807-2500 ·
Fax: (919) 715-0282
NCIC Home Page: http://www.ic.nc.gov/