An independent review found that the financial trajectory of Victoria’s Workers’ Accident Compensation System is unsustainable as unpaid claims continue to skyrocket.
according to report According to Victorian Auditor Andrew Greaves, WorkSafe’s unpaid claims are worth $ 13 billion ($ 9.2 billion) in 2016-17 to $ 24.5 billion ($ 17.5 billion) in 2020-21. Almost doubled in the last five years. ..
Unpaid claims are claims that the insurance company is responsible for in the future.
The report also saw a significant increase in the number of injured workers accessing weekly payments over a longer period of time, increasing previously recognized claims by $ 2.7 billion (US $ 1.9 billion) from 2020 to 21. I found that.
“This will add to the first $ 4.9 billion new invoices recognized in 2020-21 ($ 4.2 billion in 2019-20),” the report said.
In addition, the Workers’ Accident Compensation System eases the application of competence tests to injured workers, reduces and reduces the outcome of returning to work, increases the number and complexity of mental health claims, and keeps average premium rates unchanged. , Investment returns may decrease.
During fiscal 2020-21, the state government provided WorkSafe with $ 500 million (US $ 357 billion) to address financial challenges in the “short term”.
The move was also aimed at preventing higher business premiums approved by the state government rather than WorkSafe.
WorkSafe is a state health and safety regulator and administrator of the state’s workers’ accident compensation system. It is also traded as a Victorian Work Cover Authority.
The provincial government then established the WorkCover Scheme Sustainability Steering Committee in December 2020 to address WorkSafe’s strategy to address long-term financial sustainability challenges and provide integrated advice to relevant ministers. I will support you. “
Treasury Minister Shadow David Davis has criticized the Andrews Labor government for losing “control” of Victoria’s compensation system. This was already negative “long before the COVID hit”. Australian person..
“The loss in 2018-19 was $ 823.1 million. In 2019-20 it was $ 3.021 billion. And in 2020-21 the loss was $ 539.7 million. From the Victorian government. Without the $ 550 million capital injection, the 2020-21 figures would have been well above $ 1 billion. “
Davis said the fact that the Andrews government was “forced” to give WorkSafe $ 500 million ($ 357 billion) was a “financial misconduct under the Cain / Kerner government’s WorkCare scheme” for workers. He said it was reminiscent.
“They always fail these plans, and if they don’t understand these plans, they must be carried out responsibly to ensure that employee health and their support are not compromised,” Davis said. Told the Australian.
“The increased mental injury and the impact of COVID-19 continue to put great pressure on our community, workplace and workers’ accident compensation system,” a spokesperson for WorkSafe reported.
“WorkSafe is designed to ensure that the scheme is modern, purposeful and sustainable, and has a significant impact on the workplace health and safety outcomes of injured workers and the financial status of the scheme. We are developing an initiative. “
In the report, the Audit President said that Victorian insurers have total assets of $ 47.6 billion (US $ 33.3 billion) and total liabilities of $ 50.3 billion (US $ 35 billion), accounting for 94.1% of these total liabilities. He said it was related to unpaid insurance claims.
He said insurers WorkSafe, Transport Accident Commission (TAC) and Victorian Managed Insurance Authority (VMIA) are having a “significant impact” on the final results and balance sheet of the public finance company (PFC) sector. I added.