Tasmanian workers’ compensation is the latest theatre in the unending war between Australian insurers and the legal profession. At issue are the reforms made to WorkCover Tasmania’s entitlements schedule in 2001.

A briefing paper released this month by the Australian Law Council (ALC) suggests both workers and employers are worse off under the new arrangements.

It highlights the 30% rule, which prevents injured workers making common law claims for compensation unless more than 30% of their normal body functions and mobility are affected.

The ALC says the whole person impairment is a crude measure of disability that does not take into account the personal effects of workplace injuries. It says the 30% threshold is too high.

Most back and neck injuries, many of which feature ongoing pain, fall below the 30% barrier.  Indeed, ALC President John North said the council knows of only six cases where the threshold has been reached.

But the lawyers are only getting involved because of a “groundswell of complaint from within the Tasmanian community”, Mr North said. “It is also timely that this matter should be raised with the possibility of a state election in the offing.”

But Insurance Council of Australia Deputy CEO Dallas Booth says the lawyers’ arguments are misleading, and confuse the Workcover scheme with common law court actions.

He says the 2001 reforms feature a greater focus on rehabilitation and injury prevention. “The lawyer lobby is all about common law damages and has no regard to recovery from injury and returning people to work,” he said.

He noted that workers who did not meet the threshold for common law damages could qualify for statutory lump sum payments available within the Tasmanian scheme. These are available for injuries affecting more than 5% of the body. Workers with slighter injuries are still cared for, with access to hospital and medical expenses, loss of earnings and out of pocket expenses under Workcover.

He also hit out at suggestions the reforms had not resulted in reduced premiums for local business. The average premium rate has decreased from 2.75% of wages to 2.46%, while total WorkCover premiums fell from $120.6 million to $107.5 million last financial year.