Who pays for workers compensation (WorkCover) in Victoria?

Summary

WorkSafe (WorkCover) and their authorised insurance companies pay for all benefits associated with workers compensation matters in Victoria.

This is because every Victorian employer is required to take out a WorkCover workers compensation insurance policy.

This means that if a person is injured in connection with their employment in Victoria, they are covered by the WorkCover scheme.

When you suffer an injury at work, in order to claim benefits you must lodge and have accepted a WorkCover claim.

Once the WorkCover claim has been accepted, costs will be paid by WorkSafe via one of their authorised insurance companies.

Currently, in Victoria, the relevant WorkCover insurance companies are;

• Allianz
• DXC
• EML
• Xchanging.

Also, in addition to these insurance companies, there are some businesses in the state of Victoria that manage their own insurance claims. These are called ‘self insurers‘.

Does my employer need to pay anything?

Once you have lodged and have had accepted a WorkCover claim, in some instances your employer will be required to pay benefits for the first 10 working days of incapacity, we well as the first $763 of your medical and like expenses (this amount is indexed annually).

This isn’t always the case however. There is an option on WorkCover insurance where employers can have WorkCover cover the first 10 days.

Does my employer have to pay my WorkCover lump sum compensation?

No. Employers are generally not required to contribute towards WorkCover lump sum compensation payments.

This applies to both impairment benefit claims and common law claims. Any lump sum compensation that is awarded is generally paid through the WorkCover scheme rather than directly by your employer.

Will a WorkCover claim affect my employer?

Potentially. An accepted WorkCover claim may affect the workers compensation insurance premium that an employer is required to pay in future years.

Premium calculations depend on a range of factors, meaning the impact of a claim can vary significantly between different businesses.

Can I make a WorkCover claim if my employer does not have workers compensation insurance?

Yes. You can still pursue a WorkCover claim even if your employer does not have workers compensation insurance.

In most circumstances, you remain entitled to access the same benefits as a worker who was employed by an employer who did have WorkCover insurance.