The state of the Workers’ Compensation reform
In recent years, the reforms surrounding NSW Workers Compensation have received criticisms of poor practices from employers. The 2015 changes divided the workers compensation system into the State Insurance Regulatory Authority (SIRA), Insurance and Care NSW (iCare) and SafeWork NSW in an effort to produce a more effective and dedicated response to claims.
The NSW Business chamber highlights inefficiencies in the system which are inflating insurance expenses and negatively impacting both employers and employees. These proposed inefficiencies include poor claims management practices, causing delays to medical and rehabilitation services to workers – which ultimately cause a rise in premium costs. Moreover, inappropriate approval of claims, poor advice and low levels of support for employers and employees have also been blamed.
However, despite the complaints and calls for an urgent review of the system, a spokesman for NSW Treasurer Mr Perrottet mentioned it has brought about massive improvements. Since 2015, they have boasted reduced business premiums, increased worker support and elimination of the scheme debt, which compared to the old scheme, is a huge improvement. The predicted $4.1 billion deficit, premium increases of 28% and failure to help injured workers have supposedly been rectified by these reforms.
The business chamber have scheduled meetings with a number of workers’ compensation stakeholders to address these criticisms.
Further information:
Source: Insurance News
Title: NSW Treasurer hits back after workers’ comp criticism
Read time: 2 minutes
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.
A NSW Parliamentary review of Workers Compensation Scheme has been released providing recommendations to improve the NSW scheme. The report revealed the scheme is $1.87B in surplus, claims have reduced materially (110,000 in 2011/12 to 60,000 in 2015/16).
2016 saw significant change across workers compensation and in NSW in particular. 2017 looking ahead is already looking similar with a significant industry change taking effect in April’17 and a key announcement regarding insurers expected in May.