Employers can now be exempted from a 30% cap on workers’ compensation premium rate rises in exceptional circumstances, following a revision of NSW guidelines.

Insurers can apply to the State Insurance Regulatory Authority (SIRA) to exclude an employer for next financial year.

According to the guidelines, if an employer is experience-rated, leading to its workers’ insurance premium exceeding $30,000 for a 12-month period, premium rates cannot increase by more than 30% on the previous year due to the employer’s claim experience.

For SIRA to consider the exemption, insurers must make a written application before the policy renewal date. Written agreement must be obtained from SIRA before the rate rise.