Workers’ compensation insurance is a mandate in Australia. If a worker suffers from an injury or falls sick in the workplace, the employer is bound to bear the cost of treatment. The insurance also covers mental illness (from excessive work pressure or a collapse in work-life balance) for which the employer must pay for the rehabilitation.
6 Things about the Insurance You Should Know
Since workers’ compensation insurance in Australia is compulsory, you should be well-versed with the nitty-gritty of the same.
1. This Insurance is Applicable for Any and All Type of Work
Irrespective of the mode of employment, workers’ compensation insurance should be issued whenever an employer hires a worker. The insurance covers full-time, part-time, contractual, seasonal and casual workers. In a few cases, an employer must sign workers’ compensation insurance with contractors and subcontractors.
2. Know Who Runs the Insurance Scheme in Your Province
As all the workers need workers’ compensation in Australia, State Governments look into the matter carefully. Some State Governments run the scheme on their own while some sublet the responsibility. The Queensland State Government runs the scheme on their own. In South Australia, insurers work on behalf of New South Wales and the Victoria State Government. In Tasmania, Australian Capital Territory and Northern Territory, insurers run the scheme privately.
3. The Insurance Brings Peace to Employers Too
Employers need workers’ compensation to safeguard the cost of a treatment which include doctor’s fee, medicine, rehabilitation and loss of wages. By signing the insurance, employers can simply claim the money without losing a penny from their own business.
4. Identify What Fall Out of Coverage
All the employees need workers’ compensation to stay secure from injuries and sickness in the workplace. The insurance covers costs for treatment and even the funeral in case of the deceased. However, fines and penalties, wages for a replacement employee, third party injury and safety improvements are not covered by the insurance.
5. Cost of the Insurance
Depending on the type of industry you are in, the number of compensation claims you have made and the industry gazette rate of your province, the cost of the insurance varies widely. Fundamentally, it is calculated as the multiplication of the estimated wages of the employees and the industry gazette rate.
6. Timing of the Claim is Important
We understand that you need workers’ compensation insurance to claim the money you spend against a worker’s claim. Simply put, if a worker breaks his bone while working and makes a claim, first you have to compensate the worker. You can ask for compensation only after you approve the worker’s claim.