COMPARISON OF WORKERS' COMPENSATION ARRANGEMENTS
inclusion of overtime in the calculation of compensation payments, has been revised. The revised policy provides a
different interpretation of `substantially uniform', with the result that some formerly excluded workers will be
entitled to have overtime included in the calculation of their compensation payments. The revised policy conforms
with the Accident Compensation Act 1985 and reflects the intention of the Parliament when the legislation was
Claims Management Implementation Program
The Claims Management Implementation Program delivers reforms to the claims management process, following
endorsement by the Board of the Victorian WorkCover Authority of the key recommendations of the Claims
Management Review in 2001.
These changes are expected to deliver significant benefits to injured workers and employers through significantly
improved return to work outcomes, and include:
Tailoring the management of each claim to the needs of the individual circumstances of the worker and
employer, by managing claims according to risk the risk that without active intervention and management,
the worker might experience a significant period of time off work, or extended rehabilitation, that might
otherwise have been avoidable.
A streamlined process for straightforward claims. Workers and employers will simply be given the support
they need to achieve an early and durable return to work.
High risk claims will be managed by multi disciplinary teams, headed up by a Case Manager and involving
technical, medical, allied health and impairment benefit specialists. This is standard practice in the best
workers' compensation schemes.
The VWA taking a much more active role in specifying how claims are managed and in managing
The True Risk Performance Ratio (TRPR) based incentive fee for agents being replaced with a package
comprising incentives and penalties based on a disaggregated set of outcome and process measures.
The enhanced claims management processes are currently being implemented through the new agent panel,
appointed by the VWA's Board following an extensive open tender process during 2002. The new panel of agents
commenced their term of appointment on 1 July 2002.
The following companies make up the new panel:
Allianz Australia Workers' Compensation Vic Ltd
CGU Workers' Compensation Vic Ltd
JLTA Workers' Compensation Services Pty Ltd
NRMA Workers' Compensation Ltd
QBE Mercantile Mutual Workers' Compensation
Wyatt Gallagher & Bassett
The VWA believes the new panel offers the best collective outcome for both the VWA and our stakeholders, and will
ensure there is a rapid and smooth transition to the new claims management model.
Since the Premium Review was established in 2000, the Premium Division has been continuing its review of how the VWA
calculates, collects and manages WorkCover premiums.
The aim of the review has been to:
simplify the WorkCover premium system
improve communication with employers
increase incentives for employers to improve their safety and return to work performance.
Heads of Workers' Compensation Authorities 55