QBE looks like seeing off a union push to place a company’s workers’ compensation policy with a scheme run by the Electrical Trades Union.

The Maritime Union of Australia wanted shipping company DP World to pay for staff income protection insurance under a workplace agreement.

It proposed using an income protection product from Protect, an insurance company with links to the Electrical Trades Union.

The product is underwritten by Lloyd’s and issued by Melbourne-based underwriting agency ATC Insurance Solutions.

DP World chose QBE instead. The shipping company has not responded to insuranceNEWS.com.au regarding how it selected the insurer.

QBE will only confirm it is in the running to win the contract to supply group personal accident protection through its workers’ compensation business unit.

It has declined to provide further details, including how many people are insured, citing commercial confidence.

It is not the first time a union has tried to direct an income protection policy to the Electrical Trades Union’s Protect company.

The royal commission on trade unions earlier this month was told that during an enterprise bargaining agreement with Thiess in Victoria, unions wanted income protection for desalination plant staff.

The Construction, Forestry, Mining and Energy Union and the Australian Manufacturing Workers’ Union wanted this cover from union-backed Incolink.

The commission heard the cover would have cost $43 a week, per employee.

Thiess brought in Aon Consulting, which offered cover at $20 a week less, but the company eventually went with Incolink.

Providing income protection through workers’ compensation agreements is an interesting move, because most workers would have this provided through their industry super funds.

For Maritime Union of Australia workers, such cover is provided by industry fund Maritime Super, underwritten by AIA Australia. The cost to fund members would be lower than the workers’ compensation models, to which the members also contribute through fees.