Introduction of new workers' compensation benefits

21/9/93

Legislation to accelerate and increase benefits paid to injured workers and simplify and improve the workers' compensation system has been introduced into State Parliament.

Labour Relations Minister Graham Kierath told the Legislative Assembly that the Workers' Compensation and Rehabilitation Bill 1993 would cut the delays out of the system while still allowing those with serious injuries their day in court.

"The Bill creates a no-fault conciliation system for dispute resolution," Mr Kierath said.

"Under the increased statutory benefits provided through the Bill, injured workers will be better off - the maximum level of compensation is increased to $100,000 and is fully indexed and all second schedule benefits have been increased.

"An important innovation is that an estimated additional $5 million a year is to be paid to workers with back, neck and pelvic injuries, which are among the most common workplace injuries.

"In the past, these workers had to prove the employer was at fault in order to receive a payment.   Many either did not submit a claim or failed to prove employer negligence and got nothing.

"Under the Government's changes, they will no longer have to prove fault and will be entitled to a payment of up to $60,000."

Mr Kierath said other features of the Bill included:

·       the dependant spouse of a fatally injured worker would be entitled to a $100,000 settlement - a $25,000 increase on the old system;

·       increased weekly payments to injured workers for the first four weeks off work;

·       the maximum allowance for medical and related expenses would increase by $5,030.40 to $30,000 and the maximum allowance for rehabilitation by $823.76 to $7,000;

·       workers with diseases such as mesothelioma could seek compensation from the General Fund;

·       a medical panel would be established to settle medical disputes, stemming the practice of 'doctor shopping';

·       a three-stage dispute resolution process, with less legal involvement, of conciliation, review and a compensation magistrate;

·       injured workers entitled to receive 30 per cent of the prescribed amount under Schedule Two would have access to common law claims;

·       an alternative gateway to common law is provided to injured workers who do not reach the 30 per cent level but have future economic loss of $100,000 or more;

·       journey claims for injury while travelling to and from work would be exempt from workers' compensation.  This was in line with taxation legislation which did not allow the cost of journey travel as a work deduction; and

·       additional compensation above the prescribed amount for totally and permanently incapacitated workers would be achieved through an easing of stringent provisions which in the past resulted in few workers succeeding with their application.

Mr Kierath said that following suggestions he had agreed that the District Court would deal with claims resulting from the June 30 cut-off date for common law claims.

If workers and insurers could not agree on a settlement, the District Court would make a preliminary determination whether a worker had a proven negligence claim which equalled or exceeded significant damages.

Where negligence was proven but damages were not significant, the worker would be entitled to the improved statutory benefits.  If the damages were significant, the insurer was compelled to make a final settlement and, if rejected by the worker, the matter could go to trial.

However, to encourage the parties to negotiate realistically, if the trial resulted in a damages award at least 20 per cent greater than the insurer's final settlement offer, the insurer would have to pay the worker's legal costs.  If the award was less than 20 per cent greater than the final settlement offer, the worker would have to pay the insurer's costs.

"The legislation addresses the escalating cost of common law, improves statutory benefits for workers and simplifies the dispute resolution process," Mr Kierath said.

Media contact: Brian Coulter 222 9595