Lawyers alarmed at new workers’ comp laws
The Victorian Government has introduced legislation to overturn a key Supreme Court decision on workers’ compensation insurance.
The Compensation and Superannuation Legislation Amendment Bill will affect the formula by which the Victorian Workcover Authority (VWA) recovers compensation payments from third parties and their insurers.
Insurance lawyers predicted a legislative change after the Supreme Court of Appeal found in favour of Alcoa Portland in October last year.
The court ruled that the VWA’s entitlements should be calculated with reference to the minimum impairment threshold that became part of the relevant Section 138 during the tort law reforms of 2003.
By barring claims for general damages in all but the most significant injuries (the threshold was previously 3%of whole body impairment), the amounts recoverable from third parties are significantly reduced.
DLA Phillips Fox senior associate Scott Ames says the proposed legislation effectively reverses this decision. In a typical labour hire case (where an employee of one firm is injured at the workplace of another), the difference can be sigmificant.
Unlike in other states, the VWA may be able to recover the full amount of compensation paid, even where the third party is considered only partly responsible for the injury.
The VWA has previously acknowledged that the difference in potential recoveries is significant.
Wotton Kearney senior associate Andrew Seiter says the new legislation is a slap in the face to the court system. “What the VWA could not get from four Supreme Court judges, it will now try and get through Parliament,” he told insuranceNEWS.com.au.
The bill was introduced to Parliament on September 9 but will not be debated until the new session begins on October 6.
Opposition WorkCover spokesman Gordon Rich-Phillips says the shadow cabinet has not yet taken a position on the law but will consider the issue as soon as possible.
A spokesman for WorkCover Minister Tim Holding did not return calls last week.
The Compensation and Superannuation Legislation Amendment Bill will affect the formula by which the Victorian Workcover Authority (VWA) recovers compensation payments from third parties and their insurers.
Insurance lawyers predicted a legislative change after the Supreme Court of Appeal found in favour of Alcoa Portland in October last year.
The court ruled that the VWA’s entitlements should be calculated with reference to the minimum impairment threshold that became part of the relevant Section 138 during the tort law reforms of 2003.
By barring claims for general damages in all but the most significant injuries (the threshold was previously 3%of whole body impairment), the amounts recoverable from third parties are significantly reduced.
DLA Phillips Fox senior associate Scott Ames says the proposed legislation effectively reverses this decision. In a typical labour hire case (where an employee of one firm is injured at the workplace of another), the difference can be sigmificant.
Unlike in other states, the VWA may be able to recover the full amount of compensation paid, even where the third party is considered only partly responsible for the injury.
The VWA has previously acknowledged that the difference in potential recoveries is significant.
Wotton Kearney senior associate Andrew Seiter says the new legislation is a slap in the face to the court system. “What the VWA could not get from four Supreme Court judges, it will now try and get through Parliament,” he told insuranceNEWS.com.au.
The bill was introduced to Parliament on September 9 but will not be debated until the new session begins on October 6.
Opposition WorkCover spokesman Gordon Rich-Phillips says the shadow cabinet has not yet taken a position on the law but will consider the issue as soon as possible.
A spokesman for WorkCover Minister Tim Holding did not return calls last week.