Workers Rehabilitation and Compensation Amendment Act 2001
An Act to amend the Workers Rehabilitation and Compensation Act 1988
[Royal Assent 16 July 2001]
Be it enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:
1Short titleThis Act may be cited as the Workers Rehabilitation and Compensation Amendment Act 2001 . 2CommencementThis Act commences on a day to be proclaimed. 3Principal ActIn this Act, the Workers Rehabilitation and Compensation Act 1988 is referred to as the Principal Act. 4Section 122 amended (Composition of Nominal Insurer) Section 122 of the Principal Act is amended by omitting subsection (1) and substituting the following subsections: (1) The Nominal Insurer consists of – (a) 4 members appointed by the Minister after consultation with licensed insurers and self-insurers; and (b) one member nominated by the Treasurer and appointed by the Minister; and (c) one member appointed by the Minister. (2) The Minister is to appoint one of the members referred to in subsection (1)(a) as the chairperson of the Nominal Insurer. 5Section 127A amended (Nominal Insurer Fund) Section 127A of the Principal Act is amended by omitting subsection (2) and substituting the following subsection: (2) There is to be paid into the Nominal Insurer Fund – (a) money received by the Nominal Insurer under section 128 and section 128A ; and (b) money borrowed by the Nominal Insurer under section 129A ; and (c) any other money received by the Nominal Insurer. 6Section 127B insertedAfter section 127A of the Principal Act , the following section is inserted in Division 5: 127BNominal Insurer Special Account (1) The Nominal Insurer is to establish a Special Account in the Nominal Insurer Fund into which money received by the Nominal Insurer by way of special contributions under section 128A(2) is to be paid. (2) The Nominal Insurer is to pay from the Special Account – (a) amounts of the type specified in section 127A(3) that are determined by the Nominal Insurer to be paid from the Special Account; and (b) amounts required to be paid by the Nominal Insurer under section 128A(14) and (15) ; and (c) the repayment of any money borrowed by the Nominal Insurer under section 129A together with any interest payable on the money borrowed or costs associated with any other arrangements entered into by the Nominal Insurer for the payment of amounts referred to in paragraph (a) . 7Section 128A insertedAfter section 128 of the Principal Act , the following section is inserted in Division 5: 128ASpecial contributions (1) In this section – domestic workers compensation insurance policy means a policy of insurance that indemnifies the policyholder for liabilities under this Act or independently of this Act in respect of domestic workers; policyholder means the holder of a policy of insurance required to be maintained under section 97(1) but does not include the holder of a domestic workers compensation insurance policy; special contribution means the special contribution determined by the Minister under subsection (2) . (2) If the Nominal Insurer is or will be liable to pay amounts of the type specified in section 127A(3) as a result of the insolvency of a licensed insurer or former licensed insurer, the Minister may require all policyholders and self-insurers to pay to the Nominal Insurer, in each year, a special contribution determined by the Minister. (3) For the purposes of subsection (2) , each State Service Agency or other body to which the Tasmanian Risk Management Fund applies is taken to be a policyholder. (4) In making a determination under subsection (2) , the Minister is to take into account – (a) the expected level of payments that the Nominal Insurer will be required to make as a result of the insolvency of the licensed insurer; and (b) the cost to the Nominal Insurer of borrowing money pursuant to section 129A or entering into other arrangements to make the payments referred to in paragraph (a) ; and (c) any other money expected to be received by the Nominal Insurer in relation to the insolvency of the licensed insurer; and (d) the period during which payment of the special contribution is likely to be required; and (e) such other matters as may be prescribed. (5) The Minister is to cause to be published in the Gazette, by not later than 15 December in each year, a determination made under subsection (2) specifying the amount of special contribution that each policyholder and self-insurer is to pay to the Nominal Insurer expressed as the percentage determined by the Minister under subsection (8) . (6) A determination made under subsection (2) is not a statutory rule for the purposes of the Rules Publication Act 1953 . (7) A determination made under subsection (2) has effect for a period of one year commencing on 30 June in the year following the day on which it is published in the Gazette. (8) If the Minister makes a determination under subsection (2) – (a) each policyholder is to pay to the licensed insurer with whom a policy of insurance is maintained an amount of special contribution that is equal to a percentage, determined by the Minister, of the premium payable by the policyholder in respect of a policy that commences on the day on which the determination made under subsection (2) takes effect or during the period for which the determination has effect; and (b) each self-insurer is to pay to the Nominal Insurer during the period for which the determination made under subsection (2) has effect an amount of special contribution that is equal to a percentage, determined by the Minister, of the notional premium, within the meaning of section 144(1) , applying – (i) in the case of a self-insurer referred to in subsection (11)(a) , on the day on which the determination made under subsection (2) takes effect; or (ii) in the case of a self-insurer referred to in subsection (11)(b) , on the day on which the permit is granted. (9) A policyholder is to pay the special contribution to the licensed insurer with whom the policy of insurance is maintained not later than the day on which the premium in respect of the policy is required to be paid.Penalty: Fine not exceeding 20 penalty units.
(10) A licensed insurer, within 30 days after the end of each month, is to – (a) pay to the Nominal Insurer all amounts received under subsection (9) during that month; and (b) forward to the Nominal Insurer a statement in writing – (i) setting out the amounts of special contribution received in respect of policies of insurance during that month; and (ii) setting out the amounts of special contribution due during that month but not paid; and (iii) setting out such other particulars as may be required by the Nominal Insurer; and (iv) verified by a statutory declaration made by an officer of the licensed insurer. Penalty: Fine not exceeding 20 penalty units.
(11) A self-insurer is to pay the special contribution to the Nominal Insurer – (a) in the case of an employer who was granted a self-insurer permit before the day on which the determination under subsection (2) took effect, within 30 days of the day on which the determination takes effect; or (b) in the case of an employer who is granted a self-insurer permit after the day on which the determination under subsection (2) took effect, within 30 days of the day on which the permit is granted. Penalty: Fine not exceeding 20 penalty units.
(12) If a policyholder is required to pay an additional premium as a result of an adjustment of the policy of insurance, the policyholder must pay to the licensed insurer with whom the policy is maintained the amount of special contribution payable in respect of that adjustment not later than the day on which the additional premium in respect of the policy is required to be paid.Penalty: Fine not exceeding 20 penalty units.
(13) If a policyholder is entitled to receive from a licensed insurer a refund of an amount paid by way of premium in respect of a policyholder’s policy, the licensed insurer, in addition to any amount paid to the policyholder by way of refund of premium, is to pay to the policyholder, by way of refund of the special contribution paid by the policyholder under subsection (9) , an amount that represents a proportionate part of that special contribution. (14) If a self-insurer would, if it had been a policyholder, have been entitled to a refund of an amount paid by way of premium in respect of a policy of insurance, the self-insurer is entitled to a refund of the amount that represents a proportionate part of the amount paid by it by way of special contribution and the Nominal Insurer is to pay that amount to the self-insurer. (15) If a licensed insurer pays to a policyholder an amount by way of refund of special contribution, the Nominal Insurer, on application by the licensed insurer, is to pay to the licensed insurer an amount equal to the amount so paid by the licensed insurer. (16) If a policyholder, licensed insurer or self-insurer is convicted of an offence under this section, the court by whom the policyholder, licensed insurer or self-insurer is convicted, in addition to imposing a penalty for the offence, is to order the policyholder, licensed insurer or self-insurer to pay to the Nominal Insurer the sum in respect of the non-payment of which the offence was committed, or such portion of that sum as may remain unpaid at the date of the conviction. (17) An order under subsection (16) for the payment of a sum to the Nominal Insurer may be enforced in the same manner as a summary conviction or order under the Justices Act 1959 for the payment of a sum of money, and the provisions of that Act, with the necessary adaptations, apply such an order accordingly. 8Section 129A insertedAfter section 129 of the Principal Act , the following section is inserted in Division 5: 129APower of Nominal Insurer to borrow money If at any time the amount in the Special Account established by the Nominal Insurer under section 127B in respect of an insolvent licensed insurer is insufficient to meet payments required by this Act to be paid from the Special Account, the Nominal Insurer may – (a) borrow money, from sources and on terms and conditions approved by the Treasurer, to be paid into the Special Account; and (b) enter into such other arrangements as may be approved by the Treasurer. 9Schedule 6 amended (Provisions with respect to membership and meetings of Nominal Insurer) Schedule 6 to the Principal Act is amended as follows: (a) by omitting from clause 5(1) "referred to in section 122 (1) "; (b) by omitting from clause 5(2) "referred to in section 122 (1) ," and substituting ", other than the chairperson,"; (c) by omitting from clause 5(3) "referred to in section 122 (1) "; (d) by omitting clause 6 and substituting the following clause: 6. Filling of vacancies On the occurrence of a vacancy in the office of a member of the Nominal Insurer – (a) referred to in section 122(1)(a) , the Minister may appoint a person to the vacant office for the residue of his or her predecessor’s term of office and the person appointed is to be a person selected by the Minister after consultation with the licensed insurers and self-insurers; and (b) referred to in section 122(1)(b) , the Minister, after consultation with the Treasurer, may appoint a person to the vacant office for the residue of his or her predecessor’s term of office; and (c) referred to in section 122(1)(c) , the Minister may appoint a person to the vacant office for the residue of his or her predecessor’s term of office. (e) by omitting from clause 10 "3" and substituting "4"; (f) by omitting from clause 11(1) "Three" and substituting "Four". [Second reading presentation speech made in:
House of Assembly on 21 JUNE 2001
Legislative Council on 26 JUNE 2001]