2002

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Minister for Industrial Relations)

2002

THE LEGISLATIVE ASSEMBLY

FOR THE AUSTRALIAN CAPITAL TERRITORY

(As presented)

(Minister for Industrial Relations)

An Act to amend the Workers Compensation Act 1951, and for other purposes

The Legislative Assembly for the Australian Capital Territory enacts as follows:

This Act is the Workers Compensation (Acts of Terrorism) Amendment Act 2002.

This Act commences on 1 July 2002.

Note The naming and commencement provisions automatically commence on the notification day (see Legislation Act 2001, s 75).

This part amends the Workers Compensation Act 1951.

(1) This chapter applies to an insurer if—

(a) the insurer has acted honestly and taken all proper and business-like steps to obtain reinsurance for the insurer’s liability to pay compensation for injuries or deaths (or both) caused by acts of terrorism; and

(b) an act of terrorism happens before 1 April 2004; and

(c) the insurer accepts liability for claims for compensation for injuries or deaths (or both) caused by the act of terrorism; and

(d) the insurer has acted honestly and taken all proper and business-like steps to demand the maximum amounts the insurer may demand under the reinsurance contracts held by the insurer that apply in relation to the claims; and

(e) the total amount paid by the insurer for the claims, after the deduction of the maximum amounts the insurer may receive under the reinsurance contracts, is more than the temporary fund threshold amount that applies to the insurer.

(2) For this chapter, the temporary fund threshold amount that applies to an insurer is the amount worked out using the following formula:

(3) In this section:

insurer’s market share means the proportion (expressed as a percentage) of the administrative costs of the Act apportioned by the Minister to the insurer under section 27D (2) (Funds for administration of Act) in relation to the financial year before the act of terror happens.

premium pool means the total amount of—

(a) the premium income received by each approved insurer in relation to compulsory insurance policies in the financial year before the act of terror happens; and

(b) the premium that would have been payable by each self-insurer if the self-insurer had obtained a compulsory insurance policy for the financial year (or the part of the financial year for which the self-insurer was a self-insurer).

relevant premium pool amount means 5% of the premium pool.

In this chapter:

act of terrorism—see section 30C.

insurer means an approved insurer or a self-insurer.

temporary fund—see section 30D (1).

temporary fund threshold amount—see section 30A (2).

(1) In this chapter:

act of terrorism means the use or threat of action if—

(a) the action falls within subsection (2); and

(b) the use or threat is designed to influence a government or to intimidate the public or a section of the public; and

(c) the use or threat is made for the purpose of advancing a political, religious or ideological cause.

(2) Action falls within this subsection if it—

(a) involves serious violence against a person; or

(b) involves serious damage to property; or

(c) endangers a person’s life, other than that of the person committing the action; or

(d) creates a serious risk to the health or safety of the public or a section of the public; or

(e) is designed seriously to interfere with or seriously to disrupt an electronic system.

(3) The use or threat of action falling within subsection (2) that involves the use of firearms or explosives is terrorism whether or not subsection (1) (b) is satisfied.

(4) In this section:

action includes action outside the ACT or Australia.

government includes the government of another Australian jurisdiction or a foreign country.

person means a person anywhere, whether in or outside the ACT or Australia.

property means property located anywhere, whether in or outside the ACT or Australia.

public includes the public of a place outside the ACT or Australia.

(1) If this chapter applies to an insurer, the terrorism cover temporary reinsurance fund (the temporary fund) is established.

(2) The temporary fund consists of—

(a) the amounts of levies paid by insurers under this chapter; and

(b) amounts borrowed by the Territory for the fund; and

(c) any contributions made by the Territory to the fund; and

(d) any amounts paid to the fund under the Workers Compensation Supplementation Fund Act 1980; and

(d) income from the investment of amounts in the fund; and

(e) any other amounts that may lawfully be paid into the fund.

(3) The temporary fund is to be managed by the Territory and money paid into it is taken to be trust money under the Financial Management Act 1996.

(1) If this chapter applies to an insurer because of an act of terrorism, the insurer is entitled to be reimbursed from the temporary fund the insurer’s uninsured liability for the act of terrorism less the temporary fund threshold amount that applies to the insurer in relation to the act of terrorism.

(2) However, the insurer is entitled to be fully reimbursed from the temporary fund the insurer’s uninsured liability for another act of terrorism that happens—

(a) before 1 April 2004; and

(b) not later than 1 year after the day the act of terrorism mentioned in subsection (1) happens.

(3) Subsection (2) applies only if the insurer has acted honestly and taken all proper and business-like steps to—

(a) obtain reinsurance for the insurer’s liability to pay compensation for injuries or deaths (or both) caused by the later act of terrorism; and

(b) demand the maximum amounts the insurer may demand under the reinsurance contracts held by the insurer that apply in relation to the later act of terrorism.

(4) In this section:

insurer’s uninsured liability, for an act of terrorism, means the total of the amounts paid by the insurer for claims for compensation for injuries or deaths (or both) caused by the act of terrorism less all amounts that are recoverable (or to the extent that they are recoverable) by the insurer under the reinsurance contracts held by the insurer that apply in relation to the claims.

The temporary fund may be used to—

(a) pay any amount required under this chapter to be paid from the fund; and

(b) repay any amount borrowed for, or contributed by the Territory to, the fund; and

(c) pay interest on an amount mentioned in paragraph (b).

(1) The regulations may make provision in relation to the temporary fund, including—

(a) the imposition of levies on insurers for the fund; and

(b) payments from the fund.

(2) In particular, the regulations may make provision in relation to—

(a) levies for the fund, including their rate; and

(b) payments to the fund, including contributions by the Territory to the fund; and

(c) payments from the fund, including the information insurers claiming an entitlement to reimbursement from the fund must give to the fund’s manager.

(1) The temporary fund is declared to be an excluded matter for the purposes of the Corporations Act, section 5F in relation to the whole of the Corporations legislation to which the Corporations Act, part 1.1A (Interaction between Corporations Legislation and State and Territory laws) applies.

Note The Corporations Act, s 5F provides that if a State or Territory law declares a matter to be an excluded matter for the purposes of that section in relation to all or part of the Corporations legislation to which the Corporations Act, pt 1.1A applies (see s 5D), the provisions that are the subject of the declaration will not apply in relation to that matter in the State or Territory that made the declaration.

(2) Without limiting subsection (1) and to remove any doubt, an act or omission by an entity in relation to the fund is declared to be an excluded matter for the purposes of the Corporations Act, section 5F in relation to the whole of the Corporations legislation to which the Corporations Act, part 1.1A applies.

This chapter expires on 1 October 2004.

This part amends the Workers’ Compensation Supplementation Fund Act 1980.

The manager may

(1) The manager may

(2) The manager must pay out of the fund any amount the Minister directs be transferred to the terrorism cover temporary reinsurance fund under the Workers Compensation Act 1951.

(3) Subsection (2) and this subsection expire on 1 October 2004.

Schedule 1 amends the Acts mentioned in the schedule.

(other than rules made under section 497 (Rule-making power)

or rules made under section 497

(other than a proceeding to which rules made under section 497 apply)

3 A gardener regularly employed by the owner of a business to work on the grounds of the premises where the employer’s business is carried on. The gardener is taken to be a worker employed to perform work incidental to the principal’s business (see s (1)).

(d) cerebral aneurism;

(e) any other condition prescribed by the regulations for this section.

of a doctor

, from a doctor, that complies with the requirements for medical assessments prescribed under the regulations and

examined

assessed

may

must

(2) A medical certificate required to accompany a claim for weekly compensation must comply with the requirements for medical assessments prescribed under the regulations and include a statement of the doctor’s assessment of—

(1) In this part:

insurer, in relation to a claim against an employer, means—

(a) the approved insurer with whom the employer has a compulsory insurance policy that applies to the claim; or

(b) if the employer is a self-insurer—the employer; or

(c) if the employer is not a self-insurer and has no compulsory insurance policy that applies to the claim—the nominal insurer.

(2) For this part, a claim is given to the insurer if the claim is given to the insurer or the insurer is given notice of the claim by the employer or worker.

(1) An insurer rejects a claim for compensation under this Act by written notice given to the worker and, unless the insurer is a self-insurer, the employer.

(2) The claim is taken to be rejected when the notice is received by the worker and, unless the insurer is a self-insurer, the employer.

affidavit evidence about

a statutory declaration explaining

Note The Statutory Declarations Act 1959 (Cwlth) applies to the making of statutory declarations under ACT laws (see that Act, s 5).

(4) Subsection (3) does not affect a self-insurer’s liability in relation to the claim.

(3) The regulations may also make provision about the role of approved rehabilitation providers under this Act.

incomes

income

arbitration

conciliation or arbitration

incomes

income

(a) medical assessments of injured workers;

(ab) the use of medical specialists in relation to compensable injuries;

(h) the action that may be taken in relation to an approved insurer in circumstances prescribed under the regulations, including an order that an approved insurer pay to the Territory an amount of not more than $1 000;

given to the insurer, for pt 6.2 (Time for accepting or rejecting claims)—see section 12 (2).

injured worker—see section 10I (Definitions for ch 5).

insurer—

(a) for chapter 5 (Injury management process), means—

(i) an approved insurer or a self-insurer; or

(ii) if there is more than 1 employer of the worker—see section 10J; and

(b) for part 6.2 (Time for accepting or rejecting claims)—see section 12 (1).

workplace injury—see section 10I (Definitions for ch 5).

This Act is the Workers Compensation Supplementation Fund Act 1980.

approved insurer—see the Compensation Act, dictionary.

Compensation Act means the Workers Compensation Act 1951.

compulsory insurance policy—see the Compensation Act, dictionary.

employer—see the Compensation Act, section 5.

fund means the Workers Compensation Supplementation Fund of the Australian Capital Territory established by section 3.

worker—see the Compensation Act, dictionary.

(1) The Workers Compensation Supplementation Fund of the Australian Capital Territory is established.

(3) Each account kept by the manager under subsection (3) must contain in its title the words ‘Workers Compensation Supplementation Fund Account’.

(1) An employer who obtains a compulsory insurance policy from an approved insurer must pay to the insurer the prescribed surcharge for the policy.

(3) For this section, the prescribed surcharge for a compulsory insurance policy is an amount equal to 10% (or, if a lesser percentage is determined, in writing, by the Minister, the lesser percentage) of the premium payable in relation to the policy at the premium rate in force on the day stated in the policy to be the day when insurance cover begins under the policy.

section 17C

section 152

employer’s policies

compulsory insurance policies

Where, before or after the commencement of this Act—

If—

employer’s policy

compulsory insurance policy

employer’s policies

compulsory insurance policies

employer’s policy

compulsory insurance policy

whether made before or after the commencement of this Act

an employer’s policy

a compulsory insurance policy

• section 22 (6) (a)

• section 23 (2)

• section 25 (1)

• section 26

• section 41 (a).

insurer

approved insurer

• section 2, definition of liquidator

• section 2, definition of supervising insurer (2nd mention)

• section 7 (b) (1st mention)

• section 22 (6) (a) and (b)

• section 24 heading

• section 24 (1) (1st mention)

• section 24 (2)

• section 24 (3) (1st mention)

• section 25 (1) (1st mention)

• section 25 (2) (1st mention)

• section 26 (1) (c)

• section 26 (2) (c)

• section 26 (3) (1st mention)

• section 27 (1st mention)

• section 28 (1) (1st mention)

• section 28 (3) (1st mention)

• section 30 (1) (1st and 3rd mention)

• section 30 (2) (c)

• section 30 (3) (2nd mention)

• section 35 heading

• section 35 (1) (1st mention)

• section 35 (3) (1st mention)

• section 39 heading

• section 39 (1st mention)

• section 40 (1) (a) (1st mention)

• section 40 (2) (1st mention)

• section 41 heading

• section 41 (a) (1st mention)

• section 42 (1st mention).

insurers

approved insurers

• section 12 (1) (a) (1st mention)

• section 17 (2) (d) (2nd mention)

• section 26 heading

• section 28 heading.

For the latest republication of amended laws, see www.legislation.act.gov.au.