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QBE Connect National Newsletter Edition 10 – Autumn 2008

Connect®

QBE

We are pleased to provide you with the Autumn edition of our QBE Connect National Newsletter. There really isn’t a quarter that goes by where there is not a reference to further

initiatives undertaken by Workers Compensation schemes from around the country which attempt to address local matters of concern. This is in addition to the ongoing harmonisation efforts across the country to bring further simplicity to the management of workers compensation obligations by employers.

We note that further information is also to come to hand regarding the discussions held at the Council of Australian Governments in March 2008 where Occupational Health and Safety (OH&S) first principles and legislative consistency are being considered and a framework to effectively manage compliance and breaches. This potentially augers well for national employers who navigate this legislative minefield across jurisdictional boundaries. Some of the recent OH&S and Workers Compensation recommendations and changes include:

The trebling of fines in South Australia for •a defined offence of “endangering persons in the workplace”.

Recommended reduction in worker’s •benefits in South Australia to help rein in its unfunded workers compensation liabilities.

Welcome

Harmonisation of policy placement •documentation including wage declaration processes in New South Wales and Victoria.

Recommendations in the ACT following a •review to improve overall costs of Workers Compensation to employers.

Recommended employee benefit •amendments in Tasmania in the areas of weekly benefit extensions, medical costs and alternative common law tests.

To further help you in accessing relevant information feel free to visit our resources section at www.qbe.com.au which contains useful fact sheets and forms covering various topics of interest.

The QBE team is here to help you navigate your way through the many and varied challenges that the above changes may bring. Please contact us if there is anything we can do to help in this regard or to help you manage any issues that you may face across any of your insurance needs. Our consistent approach is about providing you with solutions, not simply insurance.

Colin FagenExecutive General Manager, Intermediary Distribution

Inside NATIONAL

Employer Must ‘Isolate’ Conflict to Reduce Stress Claims

Online Tools @ www.qbe.com.au

Training 2008

OH&S Fact Sheets Online

Documents can be Used to Perpetrate Fraud

CTP NSW Update

ACT

ACT Workers Compensation Review

NEW SOUTH WALES

NSW WorkCover Premium Forms Updated

SOUTH AUSTRALIA

Update on OH&S and Workers Compensation

VICTORIA

WorkSafe Online Employer Services

Important Dates for Victorian Employers Workers Compensation Premium 2008/09

Keep your Hot Spots in Check

TASMANIA

Tasmanian Workers Compensation Scheme Review Released

The QBE Connect national newsletter is about providing you with relevant and timely information to assist you in managing your workers compensation risk. If there are any topics you would like to see covered in the newsletter please email qbeconnect@qbe.com

2 QBE Connect

Employers Must ‘Isolate’ Conflict to Reduce Stress Claims

Following up on his presentation at a NSW injury management roundtable last March that psychological injuries were mostly caused by human interaction and “not human-to-job interaction”, senior rehabilitation psychologist Dr Rod Gutierrez has announced his project is complete.

He told a WorkCover WA injury management conference the study had yielded new data (WCR 636). Gutierrez challenged current thinking about workplace psychological distress by claiming human relationships rather than a particular type of job or its requirements caused workplace stress. He told the conference factors such as job demands, quantity of work or time pressures did not greatly influence stress-related compensation claims.

“Until now, we have always assumed that an important role was played by high demands and low control at work with many people pointing to these factors as responsible for the development of occupational stress, and as a consequence, for the ever increasing costs of workers compensation claims,” he

Useful resources now online You can find useful fact sheets covering various topics of interest as well as proposal forms and policy wordings all available to download from one place. To find out more visit www.intermediary.qbe.com.au and make a selection from the various categories.

Request a NSW Workers Compensation Policy with our Intermediary Online Policy Request

Request a cover note for Victorian employers with our Online Covernote Request

Online Tools @ www.qbe.com.au

said. (His data was gleaned from 160 workers compensation claims of a diverse background. He looked at “archival” claims submitted, “but not assessed by insurance companies”. The files contained transcripts of interviews with claimants, supervisors, treating doctors and psychological diagnosis and conclusions). Gutierrez said resources should be aimed at isolating and managing interpersonal conflict. He found that up to one-third of the claimants sampled had experienced substantial traumatic events at work (often violence). Those events had “precipitated” distress and brought about compensation claims. Gutierrez noted his research countered several leading stress studies. “We found that it is human relationships causing stress in the workplace rather than the type of job or its content.” Another research finding was that employees felt they underestimated the amount of support they received in the workplace while employers felt they overestimated the support they gave.

The only way to reduce stress claims was to better manage relationships in the

workplace, Gutierrez said. “We will need to turn our attention to what happens in the social sphere at work to fully understand and manage psychological injury with the knowledge that poor interpersonal relationships at work can be substantially more psychologically damaging than the work itself,” he said. “But certainly the effective management of traumatic incidents at work remains a challenge for all professionals working in the field.” The presentation is available at www.workcover.wa.gov.au.

Source: Thompsons Workers Compensation Report, 673, January 2008

NaTIoNal

3 www.qbe.com.au

OH&S Fact Sheets Online

A Guide To Workplace Inspection •

Employee Inductions•

Risk Assessments•

Job Safety Analysis•

Workplace Consultation•

Plant Safety.•

Go to www.qbe.com.au/WorkersCompensation and select Occupational Health and Safety.

CTP NSW UpdateNSW CTP quotes made easier with ctpquote@qbe.com

Now it’s even easier to get a CTP business or fleet quote from QBE. Simply email your quote details to ctpquote@qbe.com and you will receive a competitive price within 48 hours.

DriverProtect – Additional cover for NSW Green Slip clients

QBE has introduced a new policy benefit for eligible CTP customers in NSW called DriverProtect.

DriverProtect provides benefits to the at-fault driver in a motor vehicle accident up to the value of $300,000 when they suffer certain specific injuries.

The policy comes free of charge and will be printed automatically when you follow the usual Green Slip process via the Agents Online System.

Documents can be Used to Perpetrate Fraud

Training 2008Have you booked your training for 2008? Simply go online, select the course, date, location and register at www.qbe.com.au/WorkersCompensation

2008 Courses include:

Manual Handling Risk Assessment•

Integrated Approach to OH&S, Workers •Compensation and Return to Work

Accident Investigation and Incident •Notification

A Quick Guide to Workers Compensation•

Initial Level OH&S for Health and Safety •Representatives, Managers and Supervisors (Victoria only)

An Overview of Workers Compensation •Premium

Role of the Return to Work Coordinator •(Victoria only)

An Introduction to Return to Work •Coordination(NSW only)

Accredited OH&S Consultation •(NSW only)

Making Sense of OH&S and Risk •Management

NaTIoNal

A suspect document may be a fake or an altered original document. Some documents can easily be recreated on standard software packages, such as a letterhead. So whenever possible ask for the original copy of the document.

Forms

A form can be altered or falsified in many ways. In workers compensation the most common forms that are altered or falsified include:

Claim for Expenses•

Notification of Injury •

Job Logs•

Medical Certificates•

Letters•

Fraudulent reports

A report can be altered or falsified in many ways. In workers compensation the most common reports that are altered or falsified include:

Medical•

Factual•

Surveillance•

Tax invoice or receipt•

Here are some tips on what you should look out for.

An original document’s text or figures may be altered. Look for obvious differences, such as:

physical damage e.g. torn edges, •smudges, spilt product

extra characters in the document’s •copy

deleted characters from the document’s •copy

white out •

more than one typeface used •

more than one handwriting style used •

more than one writing style used •

spelling mistakes •

grammatical mistakes•

The original document may have been photocopied. If it is, ask for the original. The use of photocopies may be used to disguise information from the original document.

If you suspect a document may be fraudulent contact your QBE Case Manager.

QBE Connect4

aCT

ACT Workers Compensation ReviewIn August 2007 the ACT Workers Compensation Review Final report (The Review) was published. The report, titled ‘ACT Workers Compensation – How do we make it work better?”, was prepared jointly by the Australian Health and Safety Services, Dibbs Abbott Stillman and Cumpston Sarjeant Pty Ltd on Behalf of the ACT Chief Ministers Department.

The Review was commissioned “partly as a result of a need to review the 2002 scheme five years after its introduction and partly as a result of an underlying view from many stakeholders that the new scheme had not fully achieved its objectives in improving the operational effectiveness and financial viability of the scheme”1.

In general the review found that:

The ACT Scheme is more costly than any •other scheme in Australia.

Major barriers exist to maintaining focus •on prevention and injury management.

More fine tuning of the current scheme is •required.

Areas exist where administrative processes •can be improved.

Comparative analysis of ACT Premiums found that there has been “a lack of consistent and ongoing dialogue between the ACT Government and Licensed Insurers focused on scheme performance”2. Premium rates have been influenced by, amongst other things, actuarial assessments not being undertaken on a regular and consistent basis.

Key recommendations contained in the review include:

Relocation of the licensing function for •insurers, self-insurers and rehabilitation providers to the ACT Insurance Authority, supporting the monitoring of scheme performance and licensing.

Actuarial assessment of the scheme •performance be made available on a regular and consistent basis to provide recommended industry premiums supporting premium pricing.

Further inquiry into the factors •contributing to the identified increase in weekly payments and rehabilitation payments, complimented by an urgent overhaul of the scheme database to facilitate detailed analysis of legal, medical and rehabilitation costs.

That the existing early notification •provisions be retained and enhanced by an information and awareness program to further improve this element of the scheme.

That the requirement for a Personal Injury •Plan be extended to 14 rather than 7 days, with businesses employing more than 20 employees required to appoint an injury coordinator, who will receive formal training and be able to develop and manage Personal Injury Plans.

The existing requirement for a •rehabilitation provider to be involved in the development of a Personal Injury Plan be extended to designated staff of approved insurers and self-insurers who have completed the requisite training.

That the ACT Government liaise with •relevant medical representative bodies to establish a framework for the accreditation of medical practitioners issuing workers compensation medical certificates, including a possible 14 day time limit on medical certificates without referral for independent review. While also seeking to promote timely availability of specialist referrals, and an agreed framework for the provision of medical reports and associated costs.

That the ACT Government explore the •implications of withdrawing from the Comcare scheme and becoming a self-insured entity under the ACT Private Sector Scheme.

That the current Wages and Earnings •Guide be issued by a Notifable Instrument, so that it can be referred to formally in the calculation and declaration of wages and earnings.

Review of the legislative provisions •applying to the definition of worker, and coverage of Company Directors and Trustees

Changing the requirements for provision •of wage estimates and declarations, such that they are required within 28 days after the end of the policy period.

Allowing the issue of a Certificate of •Currency for a full 12 month policy period.

Undertaking additional research to identify •the behavioural impact of unlimited Common Law availability at an individual injured worker level.

Establishing a formal mechanism to •recognise and financially reward injury prevention programs implemented at the business enterprise level.

Full details of the ACT Workers Compensation Review can be found at the ACT Government Chief Ministers Department website.

1ACT Workers Compensation Review Final Report, p42ACT Workers Compensation Review Final Report, p.6

5 www.qbe.com.au

NSW WorkCover Premium forms, Workers Compensation Insurance Proposal, Declaration of Actual Wages and Declaration of Estimated Wages have been updated and now include a new section to declare or estimate the value of wages paid/payable to Apprentice Workers. QBE will use this information to apply the WorkCover Apprentice Discount in the calculation of an employer’s premium.

In addition, the following changes have been made to the Declaration of Estimated Wages and Declaration of Actual Wages Forms:

Removal of the requirements to separately •list employer contributions to superannuation, termination payments and long service leave components of wages.

NSW WorkCover Premium Forms Updated

NEW SoUTH WalES

SoUTH aUSTRalIa

The South Australian Parliament has approved significant increases in penalties, effective from 1 January 2008.

The amendment to the legislation effectively trebles maximum fines for Bodies Corporate and defines a new offence of “endangering persons in the workplace” (which replaces the previous ineffectual offence of an “aggravated offence”, which had never been successfully prosecuted).

The new penalties are:-

Natural Person

Body Corporate

Division 1 fine $200,000 $600,000

Division 2 fine $100,000 $300,000

Division 3 fine $40,000 $120,000

Division 4 fine $30,000 $90,000

Division 5 fine $20,000 $60,000

Division 6 fine $10,000 $30,000

Division 7 fine $5,000 $15,000

The maximum penalty for first offence workers or employers convicted of creating “a substantial risk of death or serious harm to another who is in a workplace;” under the new Section 59 is now five years gaol or double the Division 1 fine which is $400,000.

The amendment also clarifies the distinction between an imputed Corporate liability vs any imputed Personal liability. Possible defences were also clarified.

The main implication for Managers is that this imputed liability extends to any “officer” who had any relevant decision-making power over OH&S Practises, not just the “Responsible Officer”. Managers are now expected to take a far more “hands on” responsibility for OH&S rather than merely assume that their OH&S Management System is working.

South Australia media reports contain speculation about the (soon to be announced) recommendations for containing South Australia WorkCover’s rapidly growing unfunded Workers Compensation liabilities.

Following a significant increase in liabilities during 2006, the WorkCover Board had recommended cuts to worker benefits, but the government engaged financial experts Alan Clayton and John Walsh, to conduct a review of the system.

Business South Australia has recently described the South Australian system as “ . .. the worst performing in the country” and the South Australian Centre for Economic Studies reported (in December 2007) that the cost of workers compensation

in South Australia had risen by 5.4 per cent in 2006-07 compared with a fall in every other state and territory. The failure of long-term claimants to return to work is seen as the major cause of the blow-out.

Media reports say that the Government wants legislation to reform the current scheme to go before Parliament by the middle of this year.

Currently, reports speculate that the only option available (i.e. to reduce both costs and employers’ premiums) is to limit the duration and rate of worker payments, to provide an increased incentive for workers to return to work.

The Adelaide Advertiser reported that, previously:-

“The WorkCover board had proposed cuts to workers’ entitlements such as reducing weekly income maintenance payments, capping entitlements to medical expenses, limiting solicitors’ capacity to charge injured workers and ceasing maintenance until disputes were resolved with any arrears paid to the worker where the dispute was resolved in favour of the worker.”

It is expected that rigorous debate both in parliament and in the media will now follow.

Update on OH&S and Workers Compensation

Option provided for employers to request •the issue of a Certificate of Currency simultaneously with the processing of the Declaration of Estimate Wages form by the scheme agent.

Premium Forms Definitions Supplement •is now available with all Premium forms.

Download a copy at www.qbe.com.au/WorkersCompensation

QBE Connect6

VICToRIa

WorkSafe Online Employer ServicesLast year WorkSafe launched the Employer Online Remuneration system which provided employers with the ability to complete their annual certification and estimation requirements for premium payment purposes online.

Approximately 20% of Victorian employers chose to certify their 2006/07 remuneration and estimate their remuneration for 2007/08 using the system. To date, 5% of the employers using the system have used it to revise their 2007/08 estimate – something they are legally obliged to do if their review exceeds their current estimate by 20%.

Based on the feedback received from those who have used the system during 2007/08, WorkSafe is broadening the range of services provided online. Employers will soon be able to update their contact information and postal address online, and they will also be able to obtain a Certificate of Currency electronically to evidence their status as a valid policy holder.

Important Dates for Victorian Employers Workers Compensation Premium 2008/09

Date Activity

May 25 Claim Statement and Premium Simulation Issued

June 13 Gazettal Premium Order

June 24 Policy Renewal Pack Issued

July 31 Return completed Declaration Rateable Remuneration form for 2007/08 and Estimate of Rateable Remuneration for 2008/09

August 13 Gazettal of Industry Rates

September 4 Premium calculated and employers issued with premium notice and invoice

October 1 Annual premium payment due with discount. First quarterly and monthly instalment due.

November 1 Annual premium payment due with no discount.

Keep your Hot Spots in CheckKnowing what hazards to look out for in your workplace is the first step in preventing injuries. That’s why WorkSafe has developed a new range of easy-to-follow guidance material highlighting the most common workplace injuries.

Drawn from more that five years of claims data, the new ‘Injury Hotspots’ give an industry-wide snapshot of how people get injured, and what can be done to prevent those injuries.

Injury Hotspots pinpoint the parts of the body most likely to be injured, and the common causes of those injuries.

WorkSafe’s Executive Director, John Merritt, said because the Injury Hotspots were derived from WorkSafe’s claims data, they provide powerful evidence for addressing specific safety risks.

The accompanying safety solutions are representative of the typical expectations of a WorkSafe inspector and provide a clear benchmark for achieving safety in the workplace.

“Knowing the Injury Hotspots for their industry will help employers target the biggest injury risks in their workplace. We believe this can have a significant impact on reducing injury rates.”

“A good OHS record can favourably reflect on premium, so it pays to check your Injury Hotspots so your safety improvement program considers the things most likely to happen in your workplace,” Mr Merritt said.

Initially focused on high-risk industries such as construction, manufacturing, agriculture, storage, emergency services and health, more Injury Hotspots are being developed.

“This information will be of real value in industries and occupations where health and safety is not front of mind, because it’s clear and simple and gets straight to the point,” Mr Merritt said.

“The hotspots data shows that the vast majority of workplace injuries are caused by well known hazards which have equally well known solutions.

“It’s all about reminding Victorians that there are real risks in every workplace and there are proven ways to control safety risks,” Mr Merritt said.

The first set of Injury Hotspots fact sheets are available through QBE or you can view Injury Hotspots for your industry through the interactive portal on the WorkSafe website, www.worksafe.vic.gov.au

For further information about Online Employer Services visit the WorkSafe website at www.worksafe.vic.gov.au. Information will also be available at the Annual Certification Seminars to be held in mid-July 2008.

7 www.qbe.com.au

Tasmanian Workers Compensation Scheme Review Released

TaSmaNIa

The Tasmanian State Government has released Alan Clayton’s report on the review of the Tasmanian Workers Compensation System for public consultation.

Mr Clayton has made a total of 19 recommendations, which propose a number of changes to the workers compensation benefit structure and which will have an impact on Tasmania employees. Some of these include:

One of three alternative weekly benefit •extension options. Firstly, an extension of weekly payments to age of retirement. Secondly, a model that involves an extension of the benefit duration based on the workers whole person impairment (WPI). Thirdly, vesting a discretion in the tribunal to extend payments beyond the current limit of nine years for workers with a WPI of 15% or greater in cases of demonstrated need.

Vesting a discretion in the tribunal to •extend medical payments beyond the current limit of ten years for workers with a WPI of 15% or greater in cases of demonstrated need.

Consideration be given to the introduction •of a narrative test of ‘serious injury’ to facilitate alternative access to common law damages for seriously injured and ill workers, rather then the current 30% WPI threshold.

Increasing the lump sump death benefit •and maximum impairment lump sum benefit from $208,370.61 to $250,000.

Employers/Insurers will only be allowed to •settle a worker’s entitlement to compensation once it has been approved by the tribunal.

A rebate of the employer excess to •employers who report claims to their insurer within 48 hours of receipt.

QBE will support a change to the workers compensation benefits structure, as long as the changes are restricted to improving compensation for seriously injured workers and don’t result in a large increase in costs to the scheme. It is also vital that the current focus on delivering better health and return to work outcomes for injured workers is retained and that a return to the days of litigation and a culture of “pot of gold” lump sum settlements is avoided at all costs.

It is a promising sign that the government is on the same page, the minister for Justice and Workplace Relations, Steven Kons, MHA, included the following statement in his media release following the release Alan Clayton’s report –

“The state government is keen to improve benefits for injured workers, and it also recognises it has an obligation to ensure the cost of the scheme remains affordable for Tasmanian employers and businesses”.

“Tasmanian businesses should not be at a competitive disadvantage with their interstate counterparts”.

A timeframe of when the government will endorse any of the recommendations has yet to the released.

A full copy of Alan Clayton’s report is available from the WorkCover Tasmania website www.wst.tas.gov.au

Source: http://www.media.tas.gov.au/release.php?id=22808

QBE Connect8

This newsletter is prepared exclusively for clients and intermediaries of QBE. It provides general information only. It does not take into account matters specific to your business. You should always seek independent professional advice before acting upon anything in this newsletter. No part of this publication can be reproduced without the written permission of QBE Insurance (Australia) Limited ABN 78 003 191 035.

QBE Connect® is a registered trademark of QBE Insurance Group Limited.

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AO

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8

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