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WORKERS COMPENSATION LEGISLATION (AMENDMENT)
BILL 1991
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The objects of this Bill are:
(a) to transfer responsibility for medical referees and medical panels from the
WorkCover Authority to the Cornpensation Court; and
(b) to ensure that the total amount to be contributed to the WorkCover Authority
Fund by insurers and self-insurers each year is contributed despite any change
in the estimate of the relevant premium income on which contributions are
based; and
(c) to make provision for an interim distribution of surplus money held for the
payment of claims involving certain insolvent insurers and to make other
miscellaneous changes to the legislation dealing with those insurers; and
(d) to make a minor amendment relating to criminal proceedings for false workers
compensation claims.
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides that the proposed Act is to commence on a proclaimed day or
days.
Clause 3 is a formal provision which gives effect to the Schedule of amendments to
the Compensation Court Act 1984.
Clause 4 is a formal provision which gives effect to the Schedule of amendments to
the Workers Compensation Act 1987.
Clause 5 is a formal provision which gives effect to the Schedule of amendments
the Bishopsgate Insurance Australia Limited Act 1983.
Clause 6 is a formal provision which gives effect to the Schedule of amendments to
the Associated General Contractors Insurance Company Limited Act 1980.
* Amended in committee--see table at end of volume.
2
Workers Compensation Legislation (Amendment) 1991
SCHEDULE l--AMENDMENT OF COMPENSATION COURT ACT 1984
Schedule 1 provides for the appointment of medical referees (including a chief
medical officer) and the constitution of medical panels. The provisions are similar to the
existing provisions except that:
(a) the chief medical officer is to be an officer of the Compensation Court and not
an officer of the Workcover Authority; and
(b) other medical referees are to be appointed by the Chief Judge; and
(c) medical panels will continue to be constituted by medical referees nominated
by the chief medical officer, but on behalf of the Court and not the WorkCover
Authority.
SCHEDULE 2--AMENDMENT OF WORKERS COMPENSATION ACT 1987
Medical referees and panels
Schedule 2 ( l ) , (3)-(5) and (7) make amendments as a consequence of the
amendments made by Schedule 1.
False compensation claims
Schedule 2 (2) removes the restriction in section 92B of the Act that provides that
the summary offence of making false workers compensation claims is not applicable if
the claim form is verified by statutory declaration.
Contributions to Workcover Authority Fund
Schedule 2 (6) provides for the redetermination of contributions by insurers and
self-insurers to the Workcover Authority Fund to ensure that the appropriate total
amount to be contributed to the Fund by insurers and self-insurers each year is
contributed despite any change in the estimate of the relevant premium income on which
the contributions are based. Under the Act, contributions are based on a common
percentage of each insurer's premium income for the financial year concerned--the
percentage being determined prior to that financial year on the basis of the estimated
total amount of premium income that will be received by all insurers during the year
and on the basis of the total amount required to be contributed to the Fund to meet the
estimated amount of expenditure from the Fund. The WorkCover Authority's original
estimate of premium income may need to be revised because of unexpected changes in
economic circumstances.
SCHEDULE 3--AMENDMENT OF BISHOPSGATE INSURANCE
AUSTRALIA LIMITED ACT 1983
The Act establishes a fund under the management of the Government Insurance
Office (GIO) to meet the workers compensation liabilities of the insolvent Bishopsgate
Insurance Australia Limited ("the Company"). The Act requires certain licensed
insurers to pay contributions to the fund to meet those liabilities. After dissolution of the
Company the Act provides for remaining entitlements to be paid out of the Insurers'
Contribution Fund.
Schedule 3 (1) and (2) make the necessary consequential changes to take account of
the possibility that the Bishopsgate liquidation will be changed to a scheme of
arrangement.
Distribution of surplus to contributors
The Act presently provides that if any surplus money remains in the fund once the
GIO has paid out or made provision for paying out money authorised or required to be
paid out by the Act, the GIO is to repay that money attributable to contributors to the
contributors (with any remaining amounts being paid to either the liquidator or the
Insurers' Contribution Fund).
Schedule 3 (3) amends the Act to enable the GIO to make interim distribution of the
surplus to the contributors instead of the contributors having to wait until the money has
been dealt with as presently required. The interim distribution and the final distribution
is to be made on the basis that all surplus money is to be paid to the insurance
companies which contributed to the fund (after deduction of any amount required to
meet liabilities and contingencies in respect of future claims).
Schedule 3 (4) makes a consequential amendment to the regulation-making power.
SCHEDULE 4--AMENDMENT OF ASSOCIATED GENERAL
CONTRACTORS INSURANCE COMPANY LIMITED ACT 1980
Direct payment of claims
Schedule 4 (1) amends the Act to allow GIO to pay workers compensation claims
directly to claimants instead of through the liquidator. A similar procedure applies in the
case of the Bishopsgate liquidation.
Management fees
Schedule 4 (2) removes any doubt as to whether or not the G10 is entitled to be paid
management fees from the fund established by the Act as part of the costs of
administration of the fund.
Distribution of surplus
Schedule 4 (3)-(5) amend the Act to enable an interim or find distribution of surplus
contributions to the original contributors to the insolvent insurer under the Act in the
same manner as is proposed under Schedule 3 for Bishopsgate Insurance Australia
Limited