ReturnToWorkSA has performed a major about-face on a draft policy that would have prevented many SMEs from self-insuring.

It has scrapped a proposed requirement for self-insurers to have a minimum of 500-1000 employees or a base premium approaching $1 million.

The workers’ compensation scheme had wanted to raise the minimum financial guarantee for self-insurers to $4.5 million from $850,000, but now says the figure could be $1.1 million.

A proposal to reduce the outstanding claims liability to 150% from 200% remains.

ReturnToWorkSA has also extended its consultation deadline from this Friday to March 24.

Marketing and Communications Manager Katherine Bidstrup told insuranceNEWS.com.au the changes show the organisation is listening to stakeholders.

“This is a clear indication of the willingness of the board to have an open and responsive consultation on this policy. The feedback is being taken seriously.”

Self-Insurers of South Australia Manager Robin Shaw told insuranceNEWS.com.au that while he cannot yet comment fully on the changes, his initial reaction is positive.

“In observing the revised paper, it is clear [ReturnToWorkSA] has seen the problems the proposal was presenting and has acted appropriately,” he said.