Page 3436 - Week 09 - Thursday, 20 August 2009
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MS BURCH (Brindabella) (10.50): Before I get into some of the detail of this important piece of legislation, it is important that I provide for members some broader detail on the default insurance fund and its operations.
The default insurance fund is managed by the ACT Insurance Authority within the portfolio responsibilities of the Minister for Industrial Relations. The fund is staffed by personnel with extensive experience in the management of personal injury and matters relating to the litigation of workers compensation claims.
As members might be aware, an employer’s workers compensation insurance policy will provide the insurer with the right of subrogation—that is, that the insurer will stand in the shoes of the employer and conduct all matters associated with the workers compensation claim on behalf of that employer. In essence, it is the insurer who will ultimately carry the risk for all costs associated with a particular claim.
For the benefit of the chamber, let me say that the law is very clear on what happens when a worker suffers an injury arising out of or in the course of their employment. In these circumstances, they are entitled to workers compensation.
In the Australian context, there are somewhere around 500,000 work-related injuries each year. That is a significant figure. Here in the ACT we can expect around 4,500 compensation claims each year.
While the vast majority of employers are responsible and do the right thing by their workforce, regrettably there are a small number who do not. This is why we have a default insurance fund and that is why the government, a Labor government, is moving to enhance the fund.
I am pleased that the amendments are being made to ensure that a safety net exists for workers compensation benefits to be paid to the injured workers, which will not require the consent of a non-compliant, uninsured employer.
In a number of compensation cases, the employer cannot be found, the employer refuses to be found or the employer will deny that the worker was injured in the course of their employment. When this happens, delays and barriers are established that prevent appropriate and timely treatment and rehabilitation from being accessed by the injured worker.
The bill proposes amendments that will see the default insurance fund operate as the insurer for the uninsured employer. As an insurer, the default insurance fund will manage the claim, organise and pay for the worker’s treatment and rehabilitation, pay any benefits that the worker may be entitled to and be party to any common-law action that might be brought by the worker against their uninsured employer.
The default insurance fund will operate like any other workers compensation insurer. They will complete their due diligence before accepting a claim. However, in order that the default insurance fund can fulfil its mandate, it needs to have the powers to conduct matters without the consent of the employer, as other insurers do.
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