|
For premium rating purposes, all employers with a NSW workers compensation policy are allocated to an industry class (or classes) based on the nature of their business.
On 30 June 2001, the previous industry classification system of 110 classes was replaced with an improved system based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) system. The new system, arranged into 17 broad industry divisions, is known as the WorkCover Industry Classification (WIC) system.
Each class has a workers compensation premium rate and dust diseases rate (Note: per capita and per plate WICs do not have dust diseases rates).
There are currently 536 classes (or WICs). Each class sets out:
- the types of business activities that are included in that classification and, where relevant,
- activities that are not included and are covered by other classes.
The new classification system was implemented to reduce levels of cross-subsidisation and premium avoidance. There is now a closer relationship between a class’s premium rate and its claims costs experience, and there are also more detailed and precise definitions for each class. This reduces instances of employers being allocated an incorrect class.
Transition to the new WIC system
For 2005/06, the 15 percent maximum cap on premium rates was withdrawn to assist the transition of the worst-performing industries to their true risk rate and reduce the level of cross-subsidisation provided by the rest of employers in NSW.
Increases in premium rates will remain capped at 15 percent and the maximum decrease will also remain at 15 percent.
A full description of each class is set out in the Insurance Premiums Order (IPO). Some employers may be allocated to more than one industry class if they undertake two or more separate and distinct businesses.
|