21 November 2014

Changes to Worker's Compensation in New South Wales

WorkCover NSW has recently announced changes to their licenced scheme agents list. If you have even one employee in New South Wales, these changes could affect your organisation.

Blog images24.jpgWe wanted to take this opportunity to notify you of the changes and provide some clarity around what will happen next. 

WorkCover NSW has confirmed both Gallagher Bassett and Xchanging licences will not be renewed as of 1 January 2015. 

Licences will be renewed with: 
•    Allianz Australia Workers’ Compensation (NSW)
•    CGU Workers Compensation (NSW) Limited
•    Employers Mutual NSW Limited
•    GIO General Limited
•    QBE Workers’ Compensation (NSW) Ltd

See below frequently asked questions for more information on how these changes might affect your organisation. 

If you have further queries, please do not hesitate to contact your broker.  

FAQ

I am currently a client of Gallagher Bassett – what will happen to my policy? 

If you are a current client of Gallagher Bassett in New South Wales, your policy will be transferred to Allianz. You will be notified prior to your renewal. Your cover will be continuous, regardless of the changes. Prior to being notified, you should continue to deal with Gallagher Bassett for all claims, policy and premium issues – business as usual.

I am currently a client of Xchanging – what will happen to my policy? 

If you are a current client of Xchanging in New South Wales, your policy will be transferred to Employers Mutual Limited. You will be notified prior to your renewal. Your cover will be continuous, regardless of the changes. Prior to being notified, you should continue to deal with Xchanging for all claims, policy and premium issues – business as usual.

If I have to change, what do I need to do?

You do not need to do anything at this stage. The new insurer will notify you of the renewal process prior to your renewal. As the scheme ‘insurer’ is the ‘Nominal Insurer’ owned by WorkCover and managed by the scheme agents, it is likely that your information will be automatically transferred to the scheme agent so you should not have to complete a new proposal or other paperwork.  We are seeking confirmation of this.  

Are other insurers impacted by the change?

5% of QBE’s portfolio will be transferred to GIO.  How those employers are identified has not been determined as yet.  

Do I get a choice? 

At this point, employers impacted by these changes do not have a choice of which scheme agent they are allocated.  We are investigating further details as there may be an avenue for appeal to WorkCover NSW if an employer has a valid reason to choose another scheme agent other than the one allocated.  

What will happen to employers with scheme agents who will continue their license?

We expect that it should be business as usual for most (other than the portfolio transfer from QBE to GIO).  We are still seeking clarity from WorkCover as to whether employers who are not impacted by the realignment are free to choose an agent at their next renewal or if a moratorium will be imposed. 

What are the timeframes? 

  • Policy renewals prior to 31 December will be managed by the current scheme agent, then transferred. 
  • Renewals after 1 January will be managed by the new scheme agent. 

Cover will be continuous for all employers regardless of the changes. 

I have a claim in progress. Who will manage it? 

Your current agent will continue to manage your claim in the short term. Existing active claims will be transferred to the new scheme agent between May and September 2015.

I don’t have employees in NSW, what do I need to do? 

Nothing. If you don’t have employees in New South Wales, this change will not affect you. 

Our Workers’ Compensation insurance is with Gallagher Basset or Xchanging in other states. Will this change? 

Gallagher Basset and Xchanging remain providers of Workers’ Compensation insurance in other states of Australia. The only change at present is their licence to provide Workers’ Compensation insurance in New South Wales. 

I have more questions

If you have more specific questions about how this will affect your business, please speak to your broker. 

Contact your local insurance broker