SafeWork Australia has released 2015/16 workers compensation data that shows serious claim costs increased by 30%. It is important for employers to provide a safe workplace & training to help prevent injuries. Data indicated certain age groups & industries are at risk.
As previously advised from 1 January 2018 CGU & QBE cease being agents of NSW Workers Compensation Scheme. During August, existing open CGU & QBE claims commenced transition that will finalise in December 2017.
Earlier this afternoon, icare announced the 2018 NSW workers compensation agents. Following CGU announcing their exit from NSW workers compensation, further important changes were announced today by icare. Per our previous articles it was widely expected the current 5 agents (Allianz, CGU, EML, GIO & QBE) would be reduced to 3 for 2018 onward.
Given the timing of today’s announcement, it is our current understanding that from 2018 onward, the following will occur:
All workers compensation merit reviews issued by icare are potentially subject to administrative law judicial review in the NSW Supreme Court. In this process, a party may seek orders that a decision should be set aside and sent back to icare for a revised decision to be made. Whenever a challenge is finalised and irrespective of the outcome, an assessment is undertaken to consider the impact of the judicial review decision and includes the potential impact of the finalised challenge on the dispute, functions of the Merit Review Service and the scheme more broadly. Of the thousands of applications for workers compensation merit review that have been finalised by icare, there has only been one Administrative Law challenge decided by the NSW Supreme Court.
An accident at the Sydney Royal Easter Show resulting in several employees being badly injured whilst playing on the super-slide at 12:20am and after the show closed, would make many question if they should be covered by workers compensation. Given the severity of the injuries, WorkCover NSW are investigating this particular incident. Reflecting on this, we recall clients and partners asking what is and isn’t covered by workers compensation?
Unfortunately for business owners, workers compensation is a no-fault system where employees or sub-contractors who are even under the influence of drugs and alcohol or acting carelessly are typically covered. Given each scheme (state, specialised licences, national, etc.) is different, there is regrettably no easy answer. What this means is businesses need to be acutely aware and cautious.
ABILITY GROUP were engaged several months ago by a client to assist in reducing their workers compensation related costs and claims management. Recently we advised our efforts delivered $100,000 of workers compensation related savings.
This client had experience premium increases through a combination of claims and wage growth, yet despite raising concerns with their insurer regarding several claims, our client had been unable to address their increasing premiums.