COMPARISON OF WORKERS' COMPENSATION ARRANGEMENTS

Dispute resolution

The latest reforms, effective 1 January 2002, tackle dispute resolution with a three pronged approach:

1. Preventing 

disputes

2.  Resolving disputes, and 

3.  Fair compensation for all.

Preventing disputes

The reforms enabled WorkCover to establish a Claims Assistance Service (CAS).  The role of CAS is to provide

impartial advice to injured workers and their employers, helping them smoothly navigate the workers' compensation

system. Since CAS was established in January, it has received over 2,400 calls on a broad range of issues including

early injury notification, unpaid benefits and return to work for injured workers. 

A system of provisional liability was also introduced. The new system requires insurance companies to commence

weekly compensation payments and injury management within seven days of initial injury notification. The intent of

the system is to prevent disputes, provide immediate treatment and payment of benefits, and streamline claims

processing.  

At this early stage, the new provisional liability system appears to be achieving its objectives to improve reporting,

reduce payment delays and reduce disputes.  There were also concerns that provisional liability would lead to

increased claim numbers. However, while claims appear to be reported earlier, ultimate numbers have not

increased.

Resolving disputes

In 1995/96, the  Workers' Compensation Resolution Service (WCRS) was introduced. Although this compulsory

compensation service was established to provide a fast and inexpensive method of resolving disputes, it quickly

became a stepping stone to Court. WCRS settled only 10 per cent of all disputes referred to them, and almost 20,000

matters were still being litigated in the Compensation Court annually.

So as part of the reforms, an integrated dispute resolution service was established. The Workers' Compensation

Commission (WCC) commenced operation in January 2002 and is headed up by an independent judge. The

Commission's role is to hear and determine all disputes in a timely and fair manner. It provides a complete and

integrated dispute resolution service that includes conciliation, arbitration and medical assessment. To date, the

Commission has registered more than 600 disputes. The Compensation Court is no longer receiving new matters and

is expected to finalise its existing caseload by the end of 2003.

The 2001 reforms also amended arrangements relating to common law   where a seriously injured worker can prove

their injury was as a result of employer negligence. Workers now have access to common law if they have a

permanent impairment of 15 per cent or more.  Payments for non economic loss, such as permanent impairment,

and pain and suffering, will not be compensated at common law, but paid out under the statutory Scheme.

Restrictions on access to commutations have been reintroduced, including a 15 per cent permanent impairment

threshold.  WorkCover will verify that the criteria have been met.

Fair benefits for all

The intent of injury management is to assist the injured worker to recover and return to work. However, in a small

number of cases, the worker will be left with a permanent impairment. The introduction of permanent impairment

assessment guides ensures a consistent and fair assessment of impairment for lump sum payments, common law

and commutations. 

Heads of Workers' Compensation Authorities  51