COMPARISON OF WORKERS' COMPENSATION ARRANGEMENTS

(including GST) for legal advice and $495 (including GST) for financial advice.

The bulk of eligible workers   some 3140   were injured during the WorkCare period (31 August 1985 to 30 November

1992).  These workers were able to lodge Expressions of Interest in a settlement between 8 April and 8 July 2002.

More than 75% of eligible workers lodged EOIs and are currently assessing whether to proceed to a settlement.  At 6

September, more than 90 workers had made a formal application, although the earliest date by which applications

must be lodged was 28 November 2002.

Workers covered by other parts of the program (notably those injured during the period when common law rights

had been removed   from November 1997 to October 1999) will have the opportunity to apply for a settlement once

they have met the statutory criteria.

ACT 

Terrorism cover

In January 2002, in the aftermath of the terrorist attacks on 11 September 2001, reinsurance for terrorist acts was

withdrawn worldwide.  

In June of 2002, in response to this action by reinsurers, the ACT Government amended the Workers' Compensation

Act 1951 to include temporary provisions for acts of terrorism to deal with the impact of the withdrawal of

reinsurance on the workers' compensation scheme for the Territory.  (Chapter 15)

The effect of the amendments is that in the event of an act(s) of terror, the Territory stands as the reinsurer for the

Scheme's approved insurers.

It will do this by the creation of a fund.  The purpose of the fund is to ensure that injured workers are able to receive

their entitlements, if their injuries are sustained due to an act of terror.

Unlike the current Workers' Compensation Supplementation Fund, the terrorism fund will not exist permanently.

The terrorism fund will only come into existence once three separate triggers have been activated.

The three triggers that need to be activated are:

1.  an act of terror, as defined in the Act has occurred

2.  the affected approved insurer(s) had approached, and made, the maximum demand possible on their own, 

existing, reinsurance cover, and

3.  the insurer(s) had paid the fund threshold amount, as defined in the Act.

After the triggers have been met and the Cabinet consulted, the Government will appoint a Fund Manager.  The Fund

Manager will be able to seek either a direct appropriation from Government, or will be allowed to borrow such

monies as are required to fund the entitlements of the injured workers.

The Fund Manager will then be able to levy approved insurers to recover monies paid out to injured workers.

While the solution offered in the Bill provides the certainty needed by insurers to continue to operate, it is not as

effective a solution as the return to the market of private reinsurers.  To encourage the return of reinsurers to the

market, the Act has been given a finite life.  The amendments will expire on 1 April 2004.  

The two year period provided for in the Act gives the Territory's approved insurers (and their reinsurers) time to

reassess the real risks that they face, and return to the market an effective and financially viable product for the

Territory.

Heads of Workers' Compensation Authorities  53