Employer insurance requirements
The Workers Rehabilitation and Compensation Act 1988 specifies the requirements for licensed insurers.
Sections 98(1) and (2) of the Workers Rehabilitation and Compensation Act 1988 states that:
‘an insurer shall not carry on in this State the business of insuring employers against the employers' liability to their workers under this Act unless that insurer is the holder of a licence.
Section 2 states that an insurer who contravenes subsection (1) is guilty of an offence and is liable on summary conviction to a fine not exceeding 500 penalty units.
An insurer who wishes to carry on in this State the business of insuring employers against the employers' liability to their workers under this Act may apply to the Board for a licence.’
Under the Workers Rehabilitation and Compensation Act 1988 it is compulsory for every employer to have a current workers compensation policy or to hold a permit to self-insure.
An employer who does not have a current policy
- may be prosecuted, and if found guilty of the offence, be liable to be fined up to $50,000,
- as well as an amount equal to the premium that the employer would have paid if insurance had been taken out.
In addition, uninsured employers will be held responsible to pay the full cost of compensation, including any common law costs, if their workers are injured.
Permits may be granted to employers to carry their own liability under the Act, provided that they are able to satisfy specific conditions and criteria laid down by the WorkCover Tasmania Board.
Employers are required to meet the costs of weekly payments for the first weekly rate payment for each injury suffered by a worker and the first $200 of other benefits. This excess can be removed from the workers compensation insurance policy if an employer obtains a certificate from the Board, and pays any additional premium if required by the insurer. It is also possible for an employer to extend this period of insurance excess to 30 days.
Immediately upon receiving a claim for compensation from a worker, the employer must complete the employer's report section of the Worker's Claim for Compensation form and, together with the Workers Compensation Medical Certificate, send them to their insurer within five working days (unless they are a self-insurer).
