Who pays for workers compensation?
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
- Gallagher Bassett
- EML
- Xchanging.
CGU workers compensation was an insurer responsible for paying benefits under the Victorian WorkCover scheme, but from July 2021 they have ceased.
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‘.
For example, Coles is one.
If you were an employee of Coles and you suffered injury on the job, any WorkCover benefits would be paid for by the WorkCover insurance arm of Coles.
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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.
Will my employer need to pay for lump sum compensation?
Your employer will not be required to pay anything towards any lump sum compensation that is to be paid to you.
There are potential two lump sum claims under WorkCover.
The first is an impairment benefit claim and the second is a common law claim.
Your employer will not need to contribute anything towards either lump sum claim. Any compensation paid to you will be paid for by WorkCover.
Does a compensation matter impact my employer in any other way?
In some cases once an injured person lodges a workers compensation claim, the yearly premium that an employer is required to pay may be impacted.
There are a number of factors that are taken into account when determining the premium that a business is to pay.
What if my employer does not have workers compensation insurance?
You are still entitled to make a workers compensation claim and you are able to obtain the same benefits as a person whose employer does have workers compensation insurance.
Conclusion
If you suffer an injury related to your employment, WorkSafe via their authorised insurers (or self insurers) will pay for any workers compensation expenses.
This means coverage for medical and like expenses, weekly payments, and potentially two lump sums.
In some instances, depending upon their WorkCover insurance policy, an employer will be required to cover the first ten days of incapacity and the first $763 of medical and like expenses.
