Changes to ACT Workers Compensation law

On August 20, the Minister for Industrial Relations, John Hargreaves MLA, announced that the ACT Legislative Assembly approved changes to the ACT Workers Compensation law, stating: “The Default Insurance Fund provides a safety net and meets the cost of workers compensation claims made against employers who have no insurance or against insurers who cannot meet their liability.

“The Workers Compensation (Default Insurance Fund) Bill 2009 enables the Default Insurance Fund Manager to conduct matters in the Court and settle claims with injured workers without the consent of the non-compliant employer who has no workers compensation insurance.

“The current Act requires the Default Insurance Fund to obtain the consent of an employer to settle a claim. This can dramatically increase the cost of the claims in cases where the employer cannot be located, or in cases where they simply would not cooperate.

“Without the employer’s consent, a claim would need to proceed through the court system, which would see an increase in costs as well as a delay in compensation being provided to injured workers.

“This Bill gives the Default Insurance Fund Manager powers to settle a claim without the consent of the employer. This will bring the Default Insurance Fund Manager’s powers into line with those exercised by all private sector insurers.

“These amendments will reduce court time, and legal and administrative costs associated with certain compensation claims. Most importantly, these amendments will expedite the time taken for injured workers of uninsured employers to receive their workers compensation entitlements.”