Each year, the NSW Government issues the Insurance Premiums Order (IPO).
The IPO contains important information on the calculation of workers compensation premiums including the WorkCover Industry Classification System (WIC), premium rates, dust diseases rates and information on the manner in which an employer’s claims experience will be incorporated into their premium.
The IPO details formulas that Scheme Agents must apply during the insurance policy period to calculate an employer’s premium. Workers compensation insurance premiums issued by Scheme Agents are based on a number of things, including:
- the industry in which the employer operates (the industry premium rate takes into account the costs of all compensation claims that have occurred in this industry)
- the amount of wages the employer pays to its workers
- the costs of any claims made by their workers (for employers with a basic tariff premium greater than $10,000 and with wages greater than $300,000)
- the dust diseases levy
- the mine safety premium adjustment (for mining industry employers).
A Scheme Agent who is authorised to issue policies of insurance on behalf of WorkCover must not refuse to issue a policy of insurance to any employer or to renew a policy of insurance issued to an employer, except with the consent of WorkCover or as required or permitted by an express provision of the agency arrangement.
Insurance Premiums Order 2011-2012
The Insurance Premiums Order 2011-2012 and the Insurance Premiums Order (Retro-Paid Loss Premium Method) 2011-2012 were gazetted on 10 June 2011. The orders apply to policies that commence or renew on or after 30 June 2011.
Insurance Premiums Order 2010-2011
The Insurance Premiums Order 2010–2011 applies to policies that start or renew on or after 30 June 2010. The Order was published on 18 June 2010.
Call 13 10 50 for more information about insurance premiums orders.