The Insurance Council of Australia (ICA) has signalled its support for reform of state workers’ compensation schemes.

It backs the proposed model that requires each state and territory and the Federal Government to agree minimum standardised benchmarks for reform and to move towards a no-fault national system based on that used by the NSW Lifetime Care and Support Authority.

In a submission on the Federal Government’s National Injury Insurance Scheme, ICA says the private sector scheme in the ACT and programs in WA and Tasmania may not meet proposed minimum benchmarks and would need to adjust their benefits structures.

Some jurisdictions will need to eliminate the ability to convert future benefits into lump sums and remove time limits and caps on services for workers with catastrophic injuries.

But overall the model will mean maintaining the current the position, under which an injured worker needs to interact with only one scheme. “It also leaves full responsibility with jurisdictions for the structure and design of the relevant workers’ compensation scheme.”

ICA says its members underwrite workers’ compensation schemes in WA, Tasmania, NT and the ACT.

“The minimum benchmarks option also better incorporates the objective identified by the Productivity Commission of reducing the risk of accidents by maintaining price signals to employers in workers’ compensation schemes.”

ICA says it also supports, in principle, a framework similar to the NSW Lifetime Care and Support Scheme, whereby the extra premium or levy collected to fund the lifetime care and support of a catastrophically injured worker flows into a central fund administered by government.