Workers Rehabilitation and Compensation Amendment Act 2002
An Act to amend the Workers Rehabilitation and Compensation Act 1988
[Royal Assent 30 May 2002]
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 2002 . 2CommencementThis Act is taken to have commenced on 1 January 2002. 3Principal ActIn this Act, the Workers Rehabilitation and Compensation Act 1988 is referred to as the Principal Act. 4Section 127A amended (Nominal Insurer Fund) Section 127A(2)(a) of the Principal Act is amended by inserting "and section 131D " after " section 128A ". 5Section 129A substituted Section 129A of the Principal Act is repealed and the following section is substituted: 129APower of Nominal Insurer to borrow money If at any time – (a) the amount in the Special Account established by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; or (b) the amount in a separate account established by the Nominal Insurer under section 131D(8) in respect of an act of terrorism, specified in an order under section 131B(1)(b) , is insufficient to meet payments required by this Act to be paid from that account –the Nominal Insurer may – (c) borrow money, from sources and on terms and conditions approved by the Treasurer, to be paid into the Special Account or the separate account, as the case may require; and (d) enter into such other arrangements as may be approved by the Treasurer. 6Part IX, Division 6 insertedAfter section 131 of the Principal Act , the following Division is inserted in Part IX: Division 6Acts of terrorism 131AInterpretation of Division (1) In this Division – act of terrorism means an act done or a threat made by a person – (a) for an ethnic, ideological, political, religious or similar purpose; and (b) with the intention to cause personal injury or damage to property; and (c) with the intention to influence a government or put the public, or a section of the public, in fear; actuary means a person who is a Fellow of the Institute of Actuaries of Australia; interested party means – (a) a representative of licensed insurers; and (b) a representative of self-insurers; and (c) a representative of employers; and (d) a representative of workers; and (e) the Nominal Insurer; and (f) any other person the Minister considers to be an interested party; policyholder has the same meaning as in section 128A . (2) In deciding whether an act was done or a threat was made for a purpose or with an intention specified in the definition of act of terrorism in subsection (1) – (a) regard may be had to the nature of the act or threat and the context in which the act was done or the threat was made; and (b) it does not matter whether the person was acting alone or with others or in connection with an organisation or government. 131BOrders in respect of acts of terrorism (1) The Minister may do either or both of the following: (a) make an order declaring that a policy of insurance referred to in section 97(1) is not required to indemnify the employer or any person employed by the employer for any liability arising out of an act of terrorism; (b) make an order declaring that a specified act of terrorism has occurred and the date on which that act is taken to have occurred. (2) An order under subsection (1) may have retrospective effect. (3) Before making an order under subsection (1)(b) , the Minister is to consult with all interested parties. 131CClaim for compensation in respect of act of terrorism (1) If an order is made under section 131B(1)(b) – (a) an employer is not liable to pay compensation under this Act for an injury or disease arising out of the act of terrorism specified in the order; and (b) the same claims that would, but for this section, be made against an employer may be made against the Nominal Insurer. (2) Any such claim against the Nominal Insurer must be made within 90 days after the day on which the order is made. (3) As soon as practicable after the period referred to in subsection (2) elapses, the Nominal Insurer, on the advice of an actuary, is to estimate – (a) the total amount that would, if subsection (4) did not apply, be payable by the Nominal Insurer in respect of all workers on account of its liability for the act of terrorism specified in the order; and (b) if that amount exceeds $25 million, the reduction factor by which that amount would need to be multiplied to limit it to $25 million. (4) If the Nominal Insurer determines a reduction factor, the amount that the Nominal Insurer would, but for this section, be required to pay on account of its liability for the act of terrorism specified in the order is reduced by multiplying it by the reduction factor. 131DNominal Insurer may be funded by contributions (1) The Minister, after consulting with such interested parties as the Minister considers necessary or expedient, may determine that any liability of the Nominal Insurer under this Division is to be funded by – (a) contributions from licensed insurers and self-insurers in such proportions as may be determined by the Nominal Insurer in a financial year having regard to – (i) in the case of licensed insurers, the premium income in respect of policies of insurance under this Act received by each licensed insurer in respect of that financial year; and (ii) in the case of self-insurers, the notional premium within the meaning of section 144(1) ; or (b) a special contribution determined by the Minister payable by all policyholders and self-insurers; or (c) a combination of the methods referred to in paragraphs (a) and (b) . (2) The Minister is to cause a notice of the making of a determination under subsection (1) to be published in the Gazette as soon as practicable after the determination is made. (3) If the Minister determines that the Nominal Insurer’s liability is to be funded, or partly funded, by contributions from licensed insurers and self-insurers, the amount required to be paid in respect of any financial year is not to exceed, for all acts of terrorism specified in orders under section 131B(1)(b) – (a) in the case of licensed insurers, 4% of the premium income in respect of policies of insurance under this Act received by each licensed insurer in respect of that financial year; and (b) in the case of self-insurers, 4% of the notional premium within the meaning of section 144(1) . (4) If the Minister determines that any of the Nominal Insurer’s liability is to be funded by contributions from licensed insurers or self-insurers, those contributions are not payable in respect of the financial year in which that determination is made. (5) The Nominal Insurer may require contributions payable under subsection (1)(a) to be paid at such times, including in advance, and in such instalments as the Nominal Insurer determines. (6) If contributions or a special contribution payable by a licensed insurer, self-insurer or policyholder under this section are not paid within the time specified by the Nominal Insurer or Minister, as the case may be – (a) the licensed insurer, self-insurer or policyholder is guilty of an offence and liable on summary conviction to a fine not exceeding 20 penalty units; and (b) the amount of those contributions or that special contribution together with interest calculated at the rate referred to in section 92(2)(b) may be recovered by the Nominal Insurer as a debt due to it in any court of competent jurisdiction. (7) For the purposes of this section – (a) each State Service Agency is taken to be a policyholder; and (b) the Tasmanian Risk Management Fund is taken to be a licensed insurer. (8) If the Nominal Insurer is, or is likely to be, liable to pay a claim under this Division in respect of an act of terrorism specified in an order under section 131B(1)(b) , the Nominal Insurer is to establish a separate account in the Nominal Insurer Fund into which money received by the Nominal Insurer by way of payments under this section, in respect of that act of terrorism, is to be paid. (9) The Nominal Insurer is to pay from that separate account – (a) any amount required to be paid for claims under section 131C ; and (b) any amount required to pay costs and expenses incurred by the Nominal Insurer in, or in connection with, the performance of its functions under this Division; and (c) any amount required to repay money borrowed by the Nominal Insurer under section 129A , inclusive of any interest, or to pay costs associated with any other arrangements entered into by the Nominal Insurer for the payment of amounts referred to in paragraph (a) . [Second reading presentation speech made in:
House of Assembly on 16 APRIL 2002
Legislative Council on 22 MAY 2002]