Mental injury claims data shows the system needs an overhaul to encourage earlier returns to work and specialist medical intervention, according to actuarial consultant Finity.

A median nine weeks is lost to “perception-based” mental injuries, such as from harassment, compared with three weeks for problems from specific traumatic events, it told an injury schemes seminar.

The median claim duration for acute physical injuries is less than a week of lost time, based on Safe Work Australia data.

Finity Consulting Principal Andrew McInerney says people with mental injuries are more likely to be given extended leave, despite studies showing long-term work absences have adverse health effects.

“The current system is enabling people to spend a lot of time off work, which is inconsistent with this research,” he told insuranceNEWS.com.au.

“Going back to work in a safe environment, the research tells us, is better than waiting for 100% recovery.”

GPs are more likely to deem people with mental health problems as unfit for work, and leave certificates have a longer-duration than for physical conditions.

Mr McInerney says earlier referral to mental injury specialists could cost more initially but will benefit workers and employers in the longer term and cut costs.

Finity suggests separate claim rules for traumatic-event mental injuries and “other mental injury”.

Changes could include stricter rules for extending weekly benefits for “other” injuries, plus return-to-work incentives.

Improvements would have implications for income protection and total and permanent disability insurance, with companies recently strengthening reserves, Mr McInerney says.

“What has traditionally been more of a compensation scheme issue is now becoming much more of a broader insurance issue.”