The Workers' Compensation and Injury Management Amendment
Bill 2012 ("the Bill") clarifies common law insurance
requirements under the Workers' Compensation and Injury
Management Act 1981 (WA)("Act").
Clarification was required due to uncertainty over the scope of
the insurance obligation introduced on 1 October 2011 by the
Workers' Compensation and Injury Management Amendment Act
2011 (WA). The purpose of the Bill is to provide certainty in
The Explanatory Memoranda of the Bill outlines that in order to
provide certainty to employers, brokers and insurers the Bill:
Clarifies the definition of 'damages' for insurance
Provides that employers do not require common law insurance
under the Act for 'deemed workers' - that is, workers of
whom the employer would not be the employer but for being deemed an
employer for compensation purposes only;
Preserves public liability indemnity arrangements for employers
of deemed workers;
Strengthens the ability to prescribe insurance policies under
the Act and to set out terms and conditions;
Enables regulations to limit the amount of insurance which an
employer is required to effect and maintain consistent with current
insurance industry standards, including the $50 million cap for
common law liabilities arising out of a single event; and
Preserves terms, conditions and exclusions in employer
indemnity policies to the extent these comply with the corrective
amendments in the Bill.
The Second Reading of the Bill took place in the Legislative
Assembly on 3 May 2012.
The Third Reading of the Bill took place in the Legislative
Assembly on 20 June 2012 and the Bill has now been passed by both
Houses of Parliament.
The Office of the Minister for Finance, Commerce and Small
Business has confirmed the Bill was recently delayed due to the
progress of the State Budget through Parliament. In addition
associated Regulations underpinning the Bill are in the process of
being drafted and it is anticipated that the Bill and Regulations
will be gazetted by the end of July 2012.
The Bill and the Associated Regulations have retrospective
effect and will apply with effect from 1 October 2011.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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