Commonwealth public servants will face tougher return-to-work requirements under proposed changes to Comcare.

Injured employees will get $5000 of medical expenses paid before they lodge a claim, and their employers will have immediate rehabilitation responsibilities.

Workers will get professional care for the first three years of their injury, with uncapped, long-term or lifelong care to the catastrophically injured after that.

The lump sum for the seriously injured will rise from $242,000 to $350,000, while payments will fall for people with minor injuries, taking into account pre-existing conditions.

The Government proposes caps on medical and legal costs, no lump sum payments for secondary psychological injuries and proof of a strong link to employment for injuries.

Employment Minister Eric Abetz last week told the Senate the reform will deliver $50 million a year to the Government in lower premiums and return injured people to work faster.

He says a 2012 review found Comcare does not give injured employees enough support and incentive to return to work.

Comcare covers 211,000 Commonwealth and ACT public servants and 160,000 private sector employees of 33 corporations that self-insure, such as Commonwealth Bank, John Holland Group and Linfox.

Last month the ACT Government began work on its own scheme, claiming Comcare is not working for the territory.

Senator Abetz says some minor psychological conditions will no longer be covered, nor will injuries sustained while not engaged in work activities.

His comments follow the “sex in the motel” case, in which Comcare fought a workers’ compensation claim from a public servant who was injured while having “vigorous” sex on a work trip.

The woman lost her claim but Senator Abetz last week revealed it cost the Commonwealth $600,000 to defend the case, which eventually went to the High Court.

“There are too many cases like this,” he wrote in an opinion piece in The Canberra Times. “They simply encourage rorting and malingering, waste taxpayers’ money and undermine the thousands of hard-working public servants who do not try to take advantage of the loopholes in the system.”

Under the proposals, compensation will be suspended for people who leave Australia for more than six weeks and there will be quicker processes for developing vocationally based rehabilitation programs.