The NT Government has supported every recommendation made in a review of the territory’s workers’ compensation scheme.

The reform is likely to see payments limited and an end to compensation for most strokes and heart attacks.

The NT WorkSafe review says to remain affordable the scheme should allow for binding claims settlements and limit weekly payments to five years, unless impairment is 15% or more.

In its response, the Government says insurers have lost money for three of the past five years and the scheme must review benefits or raise premiums by 15-20%.

On top of the review’s 58 recommendations, the Government makes 10 of its own, including ending claims for travel to and from work, unless the injury arises from motor vehicle use.

It also plans to tighten the rules under which insurers can refuse treatment, and to require insurers to contribute to WorkSafe’s operating costs.

Employers and their employees will have greater responsibilities around return-to-work plans.

The review recommends aligning the definition of worker with the Australian Taxation Office and other jurisdictions, and increasing death and funeral benefits.

It also supports clearer definitions of rehabilitation, suitable employment and return-to-work programs, and further work to train insurer staff.

Medical certificates should be revised to focus on capacity rather than incapacity.

It says the wording for mental stress claims should be changed so employers who take reasonable management action will minimise their exposure to claims for work-related stress.

“Ordinary diseases of life” should not be compensated, so strokes and heart attacks are not covered unless employment is the real or dominant cause.

Calculation of normal weekly earnings should be amended to reflect the average for 12 months before the injury, and it should be capped.

The Government says the last review was in 1984 and the scheme has become “considerably out of step with other jurisdictions”.