The grieving family of a man who died from COVID-19 while working overseas last year has won what is likely to be the first round of a court battle over the New South Wales (NSW) workers' compensation scheme.
According to the Sydney Morning Herald, Sydney-based dental entrepreneur Georges Sara travelled to New York in July 2020 to oversee the setup of an American facility. After arriving on July 15, he spent a few days working and seeing contacts in the dental industry. By July 19, he mentioned having a cough and fatigue and stayed in his hotel room, and on July 23, an ambulance took him to New York-Presbyterian Hospital.
In November, Sara died, resulting in a dispute over who would cover the cost of his treatment in the US.
The latest court battle is the first known workers' compensation dispute in an Australian tribunal related to COVID-19, comprising an $834,000 death payout and potentially $11 million in medical expenses.
The case also highlighted the costs insurers and business could face if employees contract COVID-19 during work and the difficulties employees might face in proving they caught the virus at work.
Insurance and Care NSW (icare) argued in the NSW Personal Injury Commission that it should not cover the costs of Sara's treatment overseas because he was not working for the company it insured when he became ill, but rather a related firm. It also argued that Sara's illness might have been contracted while socialising rather than working.
“To date, COVID has not had a significant impact on either premiums or claim numbers, but we will continue to assess impacts as the latest wave of the pandemic progresses,” an icare spokesman said, as reported by the Sydney Morning Herald.
However, NSW Personal Injury Commission principal member John Harris rejected icare's claims after reviewing when Sara's symptoms occurred, stating that Sara most likely contracted the virus sometime between boarding his flight in Sydney and arriving at his hotel, which was work travel.
Robert Guthrie, a workers' compensation expert and an adjunct professor at Curtin University, said the case was unusually complex because of Sara's travel and employment structure. In addition, Sara's family will not necessarily receive the full $11 million even if the decision stands.
Guthrie also noted that Sara suffered an “injury” due to COVID-19 rather than having a “disease” for the purposes of the law.
“The finding of a personal injury makes it much easier to sheet home the liability to the employer,” Professor Guthrie said, as reported by the Sydney Morning Herald.
