2010 Deed – 1 January 2010
New five-year contracts were awarded in October 2009, commencing 1 January 2010, with the seven existing scheme agents. Contracts were awarded following a 'Request for Proposal' process that was issued in May 2008 for the provision of all claims and policy management services.
The contract entered into by WorkCover (the Nominal Insurer) and each of the scheme agents is an 'agency' agreement (Scheme agent deed). An agency agreement is one where an agent carries out actions on behalf of a principal where those actions legally bind the principal. For the scheme agent’s actions to be valid, those actions must be within:
- the agent’s scope of authority;
- the terms of any agency agreement between them or;
- any relevant legislation.
The Scheme agent deed sets out the contractual arrangements between the Nominal Insurer and its scheme agents, and is governed through a commercial management framework. Scheme agents have agreed to provide specific services on behalf of the Nominal Insurer in accordance with the key performance indicators contained in the Scheme agent deed. Scheme agent performance is monitored by the Nominal Insurer based on the data submitted by the scheme agents, along with internal WorkCover information.
Under the contract arrangements each Scheme Agent must submit an integrated, efficient, effective and viable business model to the Nominal Insurer under which the scheme agent will conduct their Services. This outlines the tools, processes, systems and resources that the scheme agent will use to perform the services and other obligations under the Scheme agent deed. The Scheme Agent’s business model is of significant importance to the Nominal Insurer to ensure the scheme agent adopts a planned and controlled approach to achieving scheme outcomes and scheme objectives.
What’s new?
The new contracts build on the existing arrangements to ensure Scheme Agents are focussed on improving the delivery of services to injured workers and employers. The 'Request for Proposals' were evaluated based on an agent's:
- capability – their skills and knowledge to deliver scheme services
- capacity – their resources or planned resources, such as infrastructure, workforce, tools, processes and methodologies, to deliver the scheme services
- performance – demonstrated experience in delivering similar services, and an acceptable business model that will deliver the planned outcomes and services.
The main features of the new contract include:
- five-year terms
- opportunity for good performers to increase their portfolio size for the duration of the contract
- performance management framework linked to the achievement of outcomes
- remuneration for contract performance linked to achievement of outcomes
Call 13 10 50 for more information about Scheme Agent contracts.