The NSW Government has been urged to establish a “one stop shop” to resolve workers’ compensation disputes.

A parliamentary review issued last week has found the current set-up inadequate, with the review committee describing the two separate dispute schemes as “dysfunctional”.

“A major issue that arose during this review was the complexity of the two separate dispute resolution processes for resolving disputes over work capacity decisions and liability matters,” it says.

“While our report also considers specific concerns with regard to the two separate dispute resolution processes, ultimately the most pressing issue was the bifurcated nature of the dispute resolution system itself.

“To overcome these concerns, stakeholders advocated dismantling the current dispute resolution system and establishing a ‘one stop shop’ – a single jurisdiction that can determine all workers’ compensation disputes.

“We have come to the same conclusion and have therefore recommended that the NSW Government establish such a forum.”

It is the first such review since the State Insurance Regulatory Authority (SIRA), Insurance & Care NSW (icare) and SafeWork NSW were established under workers’ compensation reforms passed in 2015.

Insurers’ conduct, particularly that of case managers, is another area of concern for the review committee.

“It was disappointing to receive evidence suggesting scheme agents are not adequately supporting injured workers and in some instances not appropriately following guidelines issued by SIRA and icare, especially in relation to the use of surveillance, independent medical examiners and nominated treating doctors,” review chairman Shayne Mallard said.

“We view the upcoming negotiations for a new deed between icare and the scheme agents as an ideal opportunity to address some of these concerns.”

The review makes 26 recommendations to improve the compensation schemes.

These include SIRA developing a guideline for scheme agents outlining how rehabilitation services should be utilised during the case management process, and that icare should consider penalties for scheme agents that exert undue pressure on nominated treating doctors.

The NSW Government is due to respond to the review by September 11, according to the State Parliament website.