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Workers Compensation 


The New South Wales workers compensation system comprises four elements:

  1. WorkCover Scheme – provides workers compensation insurance through contracted Scheme Agents to employers operating in New South Wales.
  2. SICorp (through the Treasury Managed Fund) – manages workers compensation, administration and financial liability for most public sector employers except those who are self-insurers.
  3. self insurers – organisations with enough capital to underwrite, pay and manage their own claims. There are strict criteria that employers must meet prior to WorkCover granting a self-insurers licence.
  4. specialised insurers – hold restricted licences to underwrite workers compensation insurance risk for a specific industry or class of business or employers.

The workers compensation system operates through the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998.

WorkCover has dual roles within the workers compensation system.

WorkCover acts on behalf of the Nominal Insurer, which is the legal entity responsible for the performance of the WorkCover Scheme. The Nominal Insurer contracts Scheme Agents to deliver case management and policy services within the WorkCover Scheme.

WorkCover also regulates and manages the workers compensation system, including the licensing of self and specialised insurers and oversight of service providers.  

Workers compensation provides protection to workers and their employers in the event of a work related injury or disease. Through the workers compensation system, injured workers may have an entitlement to weekly payments, lump sums for permanent impairment, payment for medical and hospital treatment and workplace rehabilitation.

All NSW employers must have a workers compensation policy if they pay more than $7500 in wages per annum, employ an apprentice or trainee, or are part of a group for premium purposes.

The WorkCover Scheme Valuations estimate the outstanding claims liability for the WorkCover Scheme and are prepared by the independent scheme actuaries. The valuations are conducted twice a year for the periods ending 30 June and 31 December. 

The Scheme Agent Performance Report provides information to employers and the public on the individual performance of the seven Scheme Agents in the NSW WorkCover Scheme. The report is modelled on a similar report published by WorkSafe Victoria.

The report outlines the performance of Scheme Agents on the following measures:

  • claims management and return to work
  • service and processing.

Updated reports on the performance of Scheme Agents are published twice a year, for the periods ending 30 June and 31 December.

Call 13 10 50 for more information about workers compensation.