Brought to you by:

Self-insurers may face higher workers’ comp contribution

A review of workers’ compensation in Victoria has recommended an increase in self-insurers’ contributions.

Self-insurers such as Woolworths, Coles, Qantas, Shell and ANZ manage their own staff claims and do not pay premiums to the state scheme.

But the Essential Services Commission review argues they benefit from Victorian WorkCover Authority activities such as advertising and awareness campaigns, for which they should pay more.

Self-insurers’ payments should be based on “full cost recovery” – a recommendation the Government supports.

But more data must be collected to accurately calculate the costs attributable to them, the report says.

Self-Insurers Association of Victoria Chairman Steve Irving says the review’s terms of reference were never released and no consultation was carried out. Only a summary of the review, along with the Government’s response, has been published on the commission website.

Mr Irving says he is surprised by the recommendation because the formula for self-insurer contributions was agreed in March last year and is not due for review.

He says contributions would “increase significantly” under full cost recovery and such a move would be resisted.

However, he has “no issue” with research into how much self-insurers benefit from the scheme.

“We are more than happy to pay our fair share, but we need to know what that fair share is,” he told insuranceNEWS.com.au.