Lawyers in NSW have condemned a change to workers’ compensation legislation that makes injured staff pay their own legal costs, saying it favours insurers over claimants.

“Under this new system, insurers will have the privilege of being able to fund their defence from employer premiums, while injured workers will have to bear their own legal costs, even where a legitimate claim has been denied,” Law Society of NSW President Justin Dowd said.

“We are seriously concerned that this removes the incentive for insurance companies to support legitimate claims.”

The society and the NSW Bar Association have called on the State Government to reverse the change.

The Government amended its Workers’ Compensation Act in June, saying it needed reform to address a $4 billion deficit and improve care for the most disabled workers.

The Christian Democratic Party (CDP) introduced the legal costs amendment when the bill went through the upper house of Parliament, where the Government does not have a majority.

CDP leader Fred Nile says the amendment means parties have to pay their own costs, which stops workers having to pay “potentially massive legal bills incurred by insurance companies”.