How do claim costs impact my premium?
If you are a small employer, i.e. your average performance premium is less than or equal to $30,000, your premium will not be impacted by the costs of your workers compensation claims. However, small employers are still required to meet obligations as an employer under the Return to Work Guidelines and promote return to work by providing suitable duties to the injured worker.
Small employers who do not have any claims will receive 10% discount off their premium. Any small employer that has a claim, will retain the 10% discount if the injured worker is returned to pre injury employment within 13 weeks from the date of injury.
Premiums for medium employers, (employers that have an average performance premium greater than $30,000 but less than or equal to $500,000) and large employers (employers that have an average performance premium of more than $500,000) will be impacted by claims costs. This is referred to as ‘experience adjustment’. Your claims performance rate (CPR) is calculated by comparing your claims performance with other NSW businesses. Your CPR rewards you with a lower premium if your claims performance is better than the Scheme average. If your claims performance is poorer than the Scheme average then your premium will be higher than your average performance premium.
For additional information, please contact a GIO consultant on 13 10 10, or visit the icare Workers Insurance website.