icare recently communicated NSW workers compensation premium formula has been updated. Changes are to make premiums simpler & easier to understand as well as greater stability. An important change is the exclusion of fatality claims.
icare Updated Premium Model – Some of these changes include an increase in the Late Payment Fee rate for 2018/19 from 0.779% to 0.808% per month and will be compounded monthly. There has also been an increase in the Mine Safety Levy from 0.917% to 1.0879%. Changes have also been applied to the Dust Disease Levy, while the rates for the DDL schedules have remained the same, nine WIC’s have moved up with ten WIC’s moving down the schedule.
One of the biggest changes will be the exclusion of fatality claims in the claims experience for your premium. In the instance of a workplace injury resulting in the death of a worker business’s will now need to pay a one-off contribution amount. This contribution will not be applicable to uninsured employers with an uninsured liability scheme claim, loss prevention and recovery employers and exempt employers. The necessary contribution will be capped at $1000 minimum and maximum of $250,000 and will be calculated based on a percentage of your average performance premium.
icare have decided to apply a 30% cap on experience premium changes for employers. This capping will automatically be applied to the premium of business who qualify, this will be in cases where the increase or decrease results from a change in claims experience or where there are amendments in the premium methodology.
Employers who have consistently high claims costs year-on-year will now be will now have an adaptive maximum premium component applied moving in to 2018/19. This includes an increased claims performance adjust (CPA) rate to employers that have shown a claims performance rate (CPR) of 400% or above for more than one year.
For further advice, please contact our workers compensation specialists for assistance.
For further information, please refer to:
Source: icare
Title: icare Premium Model Update
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