Victorian WorkCover Authority (VWA) Chairman James MacKenzie says the authority will start seeking second opinions on stress cases – a claims “hotspot” – in a bid to cut down on dubious claims.

The decision to hang on even harder to the money comes as the VWA continues its strong recovery from a deficit position a few years ago.

Speaking at the authority’s annual results presentation in Melbourne last week, Mr MacKenzie said claims liabilities need to be managed with an awareness of emerging hotspots.

“The issue of stress is a case in point,” he said. “The number of stress or psychological claims is growing rapidly. Claims related to psychological conditions currently make up approximately 10% of the total number of time loss claims.”

The VWA announced a further improvement in the performance outcome from its workers’ compensation operations in 2004/05.

Mr MacKenzie says the result coincides with a reduction in workplace death and injury, and a 10% reduction in injury insurance premiums.

“Improved management of claims contributed to a strong performance outcome from the VWA’s insurance operations of $747 million,” he said.

A net profit of $775.2 million was driven by investment income of more than $1 billion and was $481 million above expected returns. Injury claims fell by their largest amount since 1997/98.

Mr MacKenzie says a higher proportion of workers with stress-related claims remain off work at 13 weeks, compared to workers with other injuries.

“It is widely recognised that a safe and timely return to work is in the best interests of injured workers,” he said. “Where required the authority will be seeking second opinions to ensure that GPs’ practices in relation to the issuing of certificates are appropriate, and in the best interests of their patients.”

Mr MacKenzie says the authority has identified a “small number of GPs whose servicing profile appears to sit well outside that of their peers”.

VWA spokesman Michael Birt told Sunrise Exchange News that despite such comments the authority will still ensure people who are genuinely entitled to compensation will be covered by the scheme. “While we will be seeking second opinions those who are entitled to support will still receive it,” he said.