WorkCover NSW has announced major changes to the NSW workers compensation insurance premium system, which will take effect for all new policies and renewals on or after 30 June 2015.
These changes are intended to:
- enable safety spending and to reward employers who maintain a safe working environment;
- encourage and reward early return to work; and
- reduce claims
In terms of their workers compensation insurance premiums, key changes employers need to be aware of are set out below:-
1. Changes to what claims costs are used for premium calculation purposes
From 1 July 2015, the only types of claims payments that will be included when determining the claims costs for premium calculation will be:
- Weekly Benefits & Weekly Benefits for dependents
- Death Benefits
- Lump sum value (s66)
- Pain & Suffering (S67)
Note that rehabilitation costs are excluded.
2. Changes to how an employer’s claims experience is determined
Instead of comparing an employer’s claims performance with their industry it will now be compared with the overall scheme performance. Please note, claims costs for CPR purposes will be as at renewal time and will not be amended on adjustment.
3. Expansion of the employer safety incentive (ESI) to medium and large employers
There will be a premium discount to help employers to build safer workplaces and prevent workplace injuries.
4. Introduction of the employer safety reward (ESR)
This payment will be available on adjustment for employers who have not had a premium-impacting claim in the last four consecutive years.
5. Introduction of the performance discount
This discount will be paid to employers depending on scheme performance as well as their CPR result.
6. Reduction of claims costs based on sustained return to work
There will be a Return to Work incentive discount based on the return to work date of each claim. This will first impact premiums for renewals after 30/06/2016. For RTW periods less than 13 weeks, there will be a 15% reduction to total CPR claim costs used for premium purposes. The discount reduces to 10% for 13-26 weeks and 5% for 26-52 weeks durations.
As with most things insurance related, it pays to speak to an expert if you are uncertain in any regard about the best course of action for your business.
Emjay Insurance Brokers offers NSW workers compensation insurance expertise in both premiums and claims, delivering comprehensive, integrated solutions for our clients, which focus on effective risk management and real cost savings.
We work across a diverse range of industry sectors, with particular expertise in the mining, construction, manufacturing, labour hire and transport sectors. You can read more about our workers comp services here. or more information on how we can assist you contact us today on 02 9796 0400.
