NSW state insurer icare is set to start remediation payments for dust disease care program participants that have been underpaid after receiving a consultants’ report on the proposed process.

The insurer says that of 5625 participants identified, about 1400 files may have been miscalculated, including 800 deceased estates.

“These will be proactively reviewed to calculate the correct payment, with work to be undertaken by a third-party partner, which will be announced shortly,” it says.

“icare will contact every person or estate that is impacted over the coming months to discuss any changes before they are made. Any participant who has been overpaid will not be required to pay back any money.”

A targeted communications campaign is also being developed to track down the estates of older claims in order to have files reviewed and any incorrect amounts paid.

The issue, which icare identified last year, resulted from decades-old legal interpretations of the 1942 and 1987 NSW Workers Compensation Acts. It has led to both underpayment and overpayment to participants or their estates.

The remediation program scope is set to apply to participants who have been underpaid since December 2014.

The insurer last month received an independent report commissioned from Deloitte on its proposed remediation approach, paving the way for it to move to the next stage.

Deloitte recommendations include that icare should consider making a payment to cover recipient tax, legal or other professional advice costs that may be required as a result of remediation payments.

“From our experience of similar programs of this scale and anticipated remediation levels, a reasonable cost would typically be between $500 and $1500,” Deloitte says.