The Queensland Government has relaxed its rules on employers self-insuring for workers’ compensation.

It comes as the state works through the 32 recommendations of an inquiry into the WorkCover scheme.

The state’s Attorney-General and Justice Minister Jarrod Bleijie says the move gives regulators discretion to issue or renew self-insurance licences when employers do not meet the criteria.

The Government has also changed the definition of “worker” to align with that of the Australian Taxation Office – another review recommendation.

The State Government manages the workers’ compensation scheme, with no involvement from private insurers. About 25 employers self-insure.

The review committee has also recommended that provision for journey claims, such as travel to and from work, be retained.

It says the definition of psychological injury should be changed, splitting it into two categories: injuries from significant trauma, and all other claims.

The committee has raised concerns that psychological claims are the fastest-growing category and could put increasing pressure on the workers’ compensation fund.

It recommends retaining access to common law but wants Mr Bleijie to investigate “no-win, no-fee” arrangements, to curtail speculative claims.

The committee says most submissions to its inquiry consider the scheme to be financially viable and meeting its objectives, with an excellent funding ratio and a better return-to-work rate than other schemes.