- Why do I need cover?
- What is covered?
- What benefits are payable?
- How are premiums calculated?
- What is a Common Law claim?
Why do I need cover?
Workers compensation in Australia is a compulsory employer financed, 'no-fault', occupational disabilities program for work related injury and disease. When an accident does occur it's the employer's responsibility to ensure the injured worker receives all necessary medical and rehabilitation care and does not suffer loss of income.
An employer who does not have a workers compensation policy may face severe penalties. These vary from state to state, with NSW having the most significant (up to $55,000 or six months jail).
What is covered?
Workers compensation is regulated by state legislation. There is no uniformity of benefits between states, so the precise extent of your workers compensation insurance cover will vary from state to state.
However, statutory workers compensation benefits are 'no fault' benefits. Providing a worker's employment is a contributing factor to an injury or illness this is usually sufficient to entitle the worker to benefits which are covered by a workers compensation policy.
It is usually not necessary that the work environment be the sole or even the main cause of an injury. The precise nature and extent of the connection between work and the injury will vary from state to state and in some cases according to the nature of the injury.
In some states, but not all, injuries suffered on journeys to and from work are also covered by workers compensation.
What benefits are payable?
Workers compensation benefits are usually payable when the work environment contributes to an injury or disease. Benefits generally include:
- Weekly earnings
- Medical & hospital treatment
- Rehabilitation
- Legal costs
- Lump sum payments
Benefits are subject to restrictions such as industrial awards or statutory limits, all of which vary between states.
How are premiums calculated?
In New South Wales, Victoria, Queensland and South Australia there are statutory formulae for the assessment of workers compensation premiums and levies. In other states the premium is set largely on the basis of the insurer's assessment of the risk, but often within statutory guidelines.
Regardless of the state scheme, all premiums have the following variables:
- Remuneration is the variable factor for calculating premium
- Industry classification is used to determine base premium rates
- Claims experience is used to adjust premiums to a 'real' risk rate (the claims experience may be industry based or individual employer based).
What is a Common Law claim?
A common law claim is a claim for damages in which it is necessary for the worker to prove 'fault' in the form of negligence or breach of statutory duty on the part of the employer. A workers compensation policy will often also cover liability for any work related 'common law' claims by employees. The extent to which a worker may bring a common law claim varies from state to state.
Next Steps
- Email us for a quote and we will provide you with a written quote within 48 hrs.
- Call us on 13 10 10 Monday to Friday between 8.30am – 5.30pm for a quote and further information.
- Visit a GIO branch.