Page 2871 - Week 11 - Thursday, 22 October 1992
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Thursday, 22 October 1992
_________________________
The Assembly met at 10.32 am.
ABSENCE OF SPEAKER
The Clerk: Members, I have to inform you that the Speaker is temporarily delayed this morning.
Motion (by Mr Berry), by leave, agreed to:
That Mrs Grassby take the chair as Acting Speaker.
MADAM ACTING SPEAKER (Mrs Grassby) took the chair at 10.32 am and read the prayer.
WORKERS' COMPENSATION SUPPLEMENTATION FUND
(AMENDMENT) BILL 1992
MR BERRY (Minister for Health, Minister for Industrial Relations and Minister for Sport) (10.32): I present the Workers' Compensation Supplementation Fund (Amendment) Bill 1992.
Title read by Clerk.
MR BERRY: I move:
That this Bill be agreed to in principle.
Madam Acting Speaker, in 1980 the Workers' Compensation Supplementation Fund Act established a system under which workers' rights to compensation would be protected if an insurance company went into liquidation. When this occurs, the Act provides for the manager of the Workers Compensation Supplementation Fund to step in and handle any workers compensation claims currently in action with the insurer concerned and also any future claims on that company. Currently, the fund manager is looking after claims for the Palmdale/AGCI and Bishopsgate Insurance companies, which went into liquidation in the early 1980s, and the National Employers Mutual Workers' Compensation Company, which folded in 1990.
Money to pay the claims is raised by a surcharge on workers compensation policies issued by all insurers in the ACT. It is collected by insurers on behalf of the fund and then forwarded to the fund manager. However, a surcharge has not been imposed since 30 June 1986 because funds already raised by the surcharge, plus money recovered by liquidators on behalf of the fund, have accumulated to provide a sufficient pool of money to cover known liabilities. The fund manager engages one of the local insurers, who is an approved insurer for the purposes of the Workers' Compensation Act, to handle day-to-day matters concerning claims. The fund manager is empowered under the Act to pay claims and costs incurred in the settlement of the claims.
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