New workers' compensation system aims to rehabilitate injured

22/12/93

Assisting injured workers to recover and return to their jobs is a priority of the new workers' compensation system.

Labour Relations Minister Graham Kierath said it was probably the first time in State history that a system had as a major objective the proper rehabilitation of the injured.

To achieve this there were a range of provisions.  These included the requirement for employers to keep open an injured worker's job, or a similar position, for 12 months from the day of disability.

"Statistics show that most claimants usually return to work within a month," Mr Kierath said.

"However, those with more serious problems will have less stress if they know their job will remain available to them.

"Employers who breach this requirement face a fine of up to $5,000."

Mr Kierath said the new system, which became law yesterday, was fair and more equitable to both workers and employers.

Effective immediately would be an increase in weekly payments to most injured workers.

Others to benefit now would be the workers whose claims were registered after the June 30 cut-off for common law processing.

Certificates of registration would be forwarded immediately so these workers have the choice of common law action.

A feature of the new system would be the 13.3 per cent increase in the maximum amount payable, backdated to July 1, 1993.

In March, new dispute resolution procedures would reduce significantly the time taken to finalise disputed claims.

Overall, there would be estimated savings of $59 million.

Forty-six million dollars of these savings would be channelled into higher no-fault benefits.

"Injured workers will receive increased benefits, employers would gain through reduced premiums and crippling legal costs will be trimmed," the Minister said.

"The growth of spurious common law claims, which do little more than benefit some members of the legal profession, have been curtailed.

"Workers with serious disabilities will still have access to common law.

"No one with a genuine claim should be disadvantaged."

Highlights of the package include:

·       up goes the maximum compensation loss of earnings from $88,232 to $100,000 - and fully indexed;

·       up by $12,000 to a maximum of $150,000 are the payments for total and permanent incapacity;

·       up go weekly payments to the injured during the first four weeks off work to either their pre-injury earnings or their current earnings, whichever is the greater.  This would be capped at $637.90 maximum a week;

·       up go benefits to dependent spouses of fatally-injured workers.  The increase would be to 100 per cent of the maximum compensation available;

·       new is the lump-sum entitlements for back, neck and pelvic injuries.  This could be as high as $60,000;

·       new is the improved access to compensation for workers afflicted by disease of gradual onset, such as those of asbestos origin, but who cannot identify the insurer of many years ago; and

·       new would be the new medical assessment panel to help resolve medical disputes and eliminate the practice known as 'doctor shopping'.

Minister Kierath said that long delays in many cases would be eliminated under the new process.

"Under the previous system, workers went to court - and sometimes it could take two years to get there - and took their chances.

"Now they have financial security and will be able to continue to pay for their bills while they are injured.

"They will have access to medical treatment to recuperate from their injuries and, most importantly, the opportunity to return to work."

Media contact:  Brian Coulter 222 9595/481 2133