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Every employer in Victoria must take out a workers compensation insurance policy.  They are then covered by Victoria’s workers compensation scheme, which is administered by WorkSafe.

Once you make a workers compensation claim, your employer pays your benefits for the first 10 working days that you are incapacitated for work and pays an amount towards your medical costs. Some employers choose not to pay this ‘excess’ amount by way of a ‘buy-out’. That is something that your employer determines when taking out its workers compensation insurance. If your employer is unable to pay for your first ten days off work or your initial medical expenses, there are provisions whereby WorkSafe will assume responsibility for these costs. Once this excess has been reached, the costs of your claim will be borne by the insurer, eg. Allianz, EML, CGU, Gallagher Bassett, Xchanging.

Increased premium: Once a worker makes a workers compensation claim, an employer’s premium may be affected. How much it is affected by depends upon the size of the business. Premiums are calculated according to the amount of wages paid out by an employer, the number of claims made in that particular industry and the number of claims made against that particular employer. Employers who pay out remuneration of more than $200,000 in any year pay workers compensation insurance premiums based on their claims performance relative to their industry. Employers that pay remuneration of less than $200,000 in any one year have their premium calculated using the experience of their industry only.

If your employer has not taken out the required insurance then you are still entitled to make a workers compensation claim and will remain part of the scheme.