SIRA releases NSW workers' comp system regulatory activity

The New South Wales (NSW) State Insurance Regulatory Authority (SIRA) has released its regulatory actions and education and support activity for October 01, 2020 to January 31, 2021.

The regulatory actions, education, and support activities help the regulator improve customer experience and results, maintain scheme and policy affordability, and build public trust.

SIRA's regulatory actions, education, and support activities related to workers’ compensation in the insurance industry are the following:

• SIRA started auditing icare's pre-injury average weekly earnings (PIAWE) calculations and compliance with workers’ compensation legislation.
• It commenced an audit of the Workers’ Compensation Insurance Fund (WCIF) to assess compliance with s154E(2) of the 1987 Act.
• It convened monthly assurance and oversight meetings with icare covering premiums, prudential management, claims management, return to work, and data quality.
• It finalised seven private ruling applications with two determinations issued to employers. These determinations constitute legally binding decisions regarding whether a person performing work is a worker, a deemed worker, or an independent contractor for workers’ compensation premium calculation.
• Conducted 17 regulatory reviews in relation to premium disputes between employers and their insurers were resolved, of which nine were arising from claims management issues.

For providers, SIRA approved 295 allied health practitioners, revoked 206 approvals, suspended one approval, and reactivated seven approvals.

For employers:

• Six hundred forty eight businesses purchased a workers’ compensation policy after SIRA commenced non-insurance investigations.
• SIRA issued nine penalty notices each for the value of $750 under s155 of the Workers’ Compensation Act 1987 for non-insurance.
• The regulator made referrals to Revenue NSW to commence recovery action for $176,001 of avoided premiums (under s156 of the Workers’ Compensation Act 1987).
• It issued two fines for failing to pay workers’ compensation policies totalling $86,306.07 (known as double avoided premiums).
• It issued 24 employer improvement notices to employers who had failed to establish a return to work program, failed to appoint a return to work coordinator, or not provided suitable work as required by the Workplace Injury Management and Workers’ Compensation Act 1998.
• It issued one penalty notice to an employer who failed to comply with an employer improvement notice.
• It conducted 60 proactive visits to employers with injured workers at risk of not returning to work (as identified through predictive modelling).
• SIRA's customer service team responded to 105 complaints related to employer practices, with 47% alleging non-compliance with legislative obligations and 26% related to employer behaviour and engagement.
• The regulator held four roundtable discussions with industry peak bodies to collaborate and share insights on workers compensation non-insurance in NSW.
• There were 906 new registrations for the free online Return to Work Coordination Training, with 656 users identifying as an employer.

The regulator also released the workers’ compensation guide April 2021 on its website, which provides all stakeholders with the latest details on the indexed adjustments. The adjustments were notified in the Workers Compensation’ (Indexation) Amendment Order 2021, published on the NSW Legislation website on March 19, 2021.