The State Government is to streamline the process for dealing with workers' compensation claims in cases where an insurer has gone into liquidation.
Legislation is also being introduced into Parliament which will allow the Workers' Compensation and Rehabilitation Commission to accept final payments from a liquidator to settle claims.
The proposed changes were introduced into Parliament by Productivity and Labour Relations Minister Yvonne Henderson today.
"There are deficiencies in the Employers' Indemnity Supplementation Fund Act which could have serious financial implications for the recovery of costs and the finalisation of outstanding claims," Mrs Henderson said.
"Currently, if an approved insurer goes into liquidation, claims are paid by the State Government Insurance Commission to the liquidator, who in turn pays the claimant.
"There are considerable administrative and claim-management costs because the liquidator's charges are additional to the SGIC fees.
"Such additional costs to the system cannot be justified.
"The proposed changes will streamline claims payments and contain costs because the SGIC will be responsible for full claims management, including direct payment to claimants.
"The Act will also be amended to empower the WCRC to negotiate and accept a final payment from the liquidator of an approved insurer in full settlement of existing, recurrent and future claims to the fund.
"This will avoid unnecessary delays in finalising the liquidation, with benefits to the cost of the system in this State.
"The supplementation fund was established in 1980 to meet the costs of failed insurers, and has had a positive benefit for workers who would otherwise not receive an entitlement," Mrs Henderson said.
