Buy out option

Liability

An employer is required to pay the first two weeks of income maintenance to an injured worker in a calendar year in accordance with the Workers Rehabilitation and Compensation Act 1986.

Income maintenance is the amount paid by our agent if a claim is accepted. It is based on the amount the worker was earning prior to the injury or illness.

Employers have been able to buy out their obligation to pay this amount by payment of an additional levy calculated as eight per cent of the WorkCover levy payable.

Commencing 1 January 2009, employers will be rewarded for the early lodgement of a claim with WorkCoverSA meeting the costs of paying the first two weeks income maintenance of an injured worker. Employers will be exempt from the operation of section 46(3) of the Act (the employer excess of paying the first two weeks income maintenance of an injured worker) for reporting a claim within 2 business days of receipt.

For more information please:

• Download the Guide to January 2009 changes
contact us, or
• phone the Service Centre on 13 18 55 for assistance.

From 1 January 2009 WorkCoverSA will not be offering any new buy-out option policies. Existing buy-out option policies and conditions will continue until 30 June 2009.