NSW workers compensation has seen significant change in the last 24 months & it is difficult for businesses to stay updated. Under current NSW legislation, there are various different incentives that can reduce premiums payable. To make things easy we have summarised each incentive.
NSW Premium Incentives Summary – summary of each incentive are below:
1. Premium Discounts
You are entitled to a discount on your premium if you pay your annual premium in full (on or before the due date).
For small employers, the current discount is 5 per cent.
For experience-rated employers the current discount is 3 per cent.
2. Employer Safety Incentive (ESI)
Small employers, will get a 10 per cent Employer Safety Incentive (ESI) premium discount at the beginning of each policy period. If all injured workers are returned to suitable work within four weeks of the date of injury, with no ongoing requirement for payment of weekly compensation, the 10 per cent discount can be kept.
Experience-rated employers, are employers with an average performance premium (total wages x your industry rate) greater than $30,000. Experience-rated employers will receive a 10 per cent Employer Safety Incentive (ESI) premium discount at policy renewal. This provides an opportunity for employers to invest the savings in workplace safety.
3. Employer Safety Reward (ESR)
An employer safety reward (ESR) discount of 5 per cent will be applied at the end of the insurance period for experience-rated employers who have not incurred any premium-affecting claims in the previous four consecutive policy periods.
4. Return to Work Incentive (RTWI)
Small employers will receive a 10 per cent Return to Work Incentive (RTWI) premium discount, instead of the ESI, if all injured workers return to suitable work with no ongoing requirement for payment of weekly compensation, between four and thirteen weeks from the date of injury.
A return to work incentive discount (5, 10 or 15 per cent) will be applied, for Experience rated employers, to the cost of each claim with a sustainable return to work outcome up to 52 weeks. Higher discounts apply to shorter return to work outcomes.
Avoid the claim excess – If a worker suffers a workplace injury, employers may avoid paying a claims excess by notifying their insurance agent or insurer within 48 hours of becoming aware of the workplace injury.
For any queries regarding any discounts/incentives or your renewal paperwork please contact the friendly staff at ABILITY GROUP.