WorkCover has introduced an optional alternative premium model for
large employers (those with a basic tariff premium of more than $500,000) based on commercial arrangements for retro-paid loss schemes. Participation in these arrangements is by application to the Nominal Insurer.
A retro-paid loss model of insurance is one in which an employer's premium more closely reflects their individual experience and success in injury and claims management over a period of several years.
Retro-paid loss premiums are calculated by the
Nominal Insurer, while an employer's existing Scheme Agent issues policies and administers claims.
The specifications for calculating the premium payable under retro-paid loss policies of insurance are included in the
Insurance Premiums Order Retro Paid Loss Premium Method.
The
guidelines describe the eligibility criteria and application process for large employers wishing to enter into retro-paid loss premium arrangements. Updates to these guidelines will be issued periodically.
Call 13 10 50 for more information.