icare recently communicated NSW workers compensation premium formula has been updated. An important change is the exclusion of fatality claims.
icare Updated Premium Model
The Late Payment Fee rose from 0.779% to 0.808% per month (compounded), the Mine Safety Levy increased from 0.917% to 1.0879%, and adjustments were made to the Dust Disease Levy. DDL schedule rates remain unchanged, with nine WICs moving up and ten moving down.
Fatality claims will no longer count toward premium experience. Exemptions apply to uninsured liability scheme claims, loss prevention and recovery employers, and exempt employers.
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.
Contact our workers’ compensation specialists for assistance.
Source: icare
Title: icare Premium Model Update
Read time: 5 mins