Section 155A of the Workers Compensation Act 1987 requires an insurance policy to be issued for a period of twelve (12) months, unless WorkCover approves a shorter period of insurance in a particular case or class of cases.
Agents can issue or renew policies for periods of less than 12 months when the reasons for the shorter term fall into one or more of the following cases:
- another entity acquires the employer and the acquirer wants to shorten the employer’s period of insurance to synchronize the expiry with that of the acquirer’s insurance
- the employer wants to synchronize the expiry date of the period of insurance with 30 June or some other accounting date that is standard for the enterprise
- for the purposes of grouping
Note: Except for the purposes of grouping the period of insurance cannot be shortened mid term. The policy must run to the expiry date and then may be renewed for a shortened period if it meets these requirements.
Employers wishing to renew their policy for a shortened period other than for grouping purposes, where they meet the requirements, must give notice to their workers compensation insurer in writing before the expiry/renewal date of the policy.
Employers who are required to be grouped are able to short term their policy before it expires to meet the preferred common renewal date. Grouping for workers compensation purposes applies to employers that are related entities with combined wages of $600,000 or more. All organisations in the group must hold policies with the same scheme agent and have a common renewal date.
In all other situations, periods of insurance other than 12 months require approval in writing from WorkCover.
Applications for a short term policy should be directed to:
The Manager
Appeals Branch
WorkCover NSW
Locked Bag 2906
LISAROW 2252
Fax No. 02 4325 4760
Further Information