After a new client engaged ABILITY GROUP to assist with a complex claim, our efforts secured a fantastic outcome that will save our client approx. $400,000 in premium increases. By the time we were involved, solicitors and an arbitration date we already booked. The insurer had communicated very little to the client and what the injured worker was seeking through a settlement was a large amount that would have significantly impacted their premium.
From 1st March 2017 all new NSW workers compensation policies are required to be lodged directly to icare via their online portal. Businesses retain an option to select which insurer will manage their claims. Renewing policies from 30 April will transition.
Like other audits, a workers compensation wage audit can be very stressful & confronting. Businesses face having to pay higher unpaid premiums, late payment fees & the actual audit costs. We assist businesses of all sizes either pre or post wage audits reduce their financial exposure.
iCare and its scheme agents have legal rights to audit employer’s records to ensure they are paying the correct premium.
In the last 12 months, the NSW workers compensation industry has experienced dramatic change. As we approach 30 June 2016, it should be relieving for businesses to know that for there are no changes for workers compensation WorkCover Industry Classification (WIC) rates. As 2016/17 rates for NSW Workers Compensation apply to all renewals that fall due at 4pm on 30th June 2016, businesses and brokers will now be receiving renewal notices for these policies without fear of rate driven increases.
For large employers, icare however announced changes to the Retro Paid Loss (RPL) model by introducing Loss Prevention & Recovery (LPR) scheme as the replacement. LPR is progressively moving closer to providing pricing similar to that of insurers in privately underwritten schemes. This is an important change for large business.
A decision made by Workers Compensation Commission Deputy President O’Grady in Sabanayagam v St George Bank Ltd [2016] on 21 January 2016 has resulted in important changes for NSW businesses. Effective immediately, any decision to cease a workers’ weekly payments of compensation need to be communicated via a Work Capacity Decision (WCD).
This decision is important as it effectively means a legislated 3 month period is required for the WCD to be completed. In context of the 30 June 2015 changes and therefore under the new NSW workers compensation premium formula, it means the additional wage costs will impact a business’ workers compensation premium for the following 3 premium renewals. As a result it is will be increasingly important to ensure all claims are managed in a timely and effective manner. Use of specialists to expedite outcomes will assist businesses in minimising the people, business and financial costs.
Our regular readers will know that the 30 June 2015 NSW workers compensation legislation changes have been a burning issue for the last 6 months or more. Many would also know that the legislation changes caused significant delays in for the NSW insurers being able to process the 2015/16 premium renewals as well as how many businesses have/will experience higher renewals under the new formula.
ABILITY GROUP is in regular discussion with the NSW insurers and are relieved to advise that we understand that close to 100% of the 30 June 2015 renewals have been processed, with only highly complex businesses outstanding. The insurers are now rapidly processing the July to December 2015 renewals which should now mean the majority of medium to large NSW businesses will receive their premiums calculated via the new formula. Business will also first hand understand if their premiums have increased or decreased as a result of the changes.