Q: I need to provide evidence that the agency is covered by the Fund for legal liability (including public and products liability and professional indemnity) / property / workers’ compensation / personal accident. What do I do?
A: A contact person at each agency has been supplied with a copy of a “Certificate of Currency” for the current financial year. You need to contact your agency contact for a copy. See Certificates of Currency for information on who to contact.
Q: Who is Marsh Pty Ltd and what is its role?
A: Marsh is the Tasmanian Risk Management Fund’s Fund Administration Agent. Its responsibilities include:
Q: Who is the underwriter for the Fund?
A: The Crown in Right of Tasmania is the underwriter of the Fund. The Fund is not a separate legal entity, but part of the Crown. A liability of the Fund is a liability of the Crown.
Q: Will the Fund meet a participant's pre-Fund liabilities?
A: No. Liabilities arising from events that occurred before the introduction of the Fund are the responsibility of participants. Medical liabilities are an exception. The Government is making a special annual contribution to the Fund to meet pre-Fund medical liabilities.
Q: Why does the Fund accumulate reserves?
A: The Fund follows conventional insurance practice and quarantines all losses for a particular year against the contributions received for that year. Therefore, the Fund needs to set aside each year an amount to meet liabilities arising from claims made in that year (claims, particularly in the liability classes of insurance, sometimes take a number of years to settle). The level of reserves required to meet outstanding liabilities remains a matter for periodic actuarial estimation until they are actually settled.
Q: How are contributions to the Fund established?
A: The level of a participant's contribution reflects their risk exposure, claims experience and nominated excess amounts. See How the Fund Works for a detailed explanation of how contributions are calculated.
Q. Are contract works covered by the Tasmanian Risk Management Fund?
A: No, contract works are not insured through the Tasmanian Risk Management Fund. Contract works let by inner-Budget agencies are separately insured through Marsh Pty Ltd. Cover for a contractor under that policy is automatic upon acceptance of each contractor’s tender. The contractor is then responsible for the payment of the premium due under the policy to Marsh Pty Ltd. The contract works policy consists of two components – one component to meet potential property damage claims and another component to meet potential liability claims ie claims made by third parties arising from the works.
Contact Marsh Pty Ltd for further information.
Q: Is glass breakage covered by insurance?
A: Only when broken by fire or storm. All other causes are handled by Housing Tasmania.
Q: Why haven’t stolen or damaged fittings been replaced yet in an untenanted property?
A: They will be replaced on the day that the property is re-tenanted.
Q: Who is responsible for removing/storing tenants’ contents if vacation is required after a fire?
A: The tenant.
Q: In the event of a total loss, who decides if a property is to be rebuilt or demolished?
A: After assessment and valuation, Housing’s Strategic Management section in conjunction with the Area Manager.
Q: What is the difference between “directors and officers liability” and “professional indemnity” cover?
A: “Directors and officers liability” covers individual officers, and others who are involved in the management of an agency, against claims alleging a breach of their managerial duties, or an act or omission in relation to the discharge of their functions as an officer of the agency. “Professional indemnity” covers an organisation (including the Crown) and its employees against claims alleging a breach of professional duty to a third party, for example an error in the provision of a specialised service, or negligent performance of a specialised obligation or function.
Q: A lease contract requires the agency to indemnify the lessor for “all claims whatsoever” which may arise during the period of the tenancy. What should we do?
A: The Fund will, subject to the payment of any excess, cover public liability claims relating to the agency’s own legal liability in tort or statute. The Fund will not, however, cover other parties (such as the lessor) purely against their own legal liability. Therefore, before agreeing to any “hold harmless” provisions in a lease contract, the agency should consider whether the lessor is requiring the agency to indemnify them only for the agency’s negligence or for the lessor’s negligence as well – the latter will not be automatically covered by the Fund. By negotiation, the agency should try to have the lessor contractually accept the risks that they are in the best position to control (eg inherent building defects). The Fund Administration Agent, Marsh Pty Ltd or Crown Law can provide assistance with any such complex insurance requirements.
Q: How is the entitlement to weekly benefits calculated?
A: Weekly benefits paid are the greater of:
Q: How long do weekly payments continue?
A: Provided that the worker continues to produce a Workers Compensation Medical Certificate, weekly payments can continue for up to 9 years (or until the worker reaches 65 years of age) but reduce over time in accordance with the following “step down” provisions:
Note: The period for payment of weekly payments extends for workers left with a permanent whole person impairment. See workers' compensation - extent of cover for further information
A: The employer is responsible for all reasonable expenses necessarily incurred by a worker as the result of an injury, including:
Q: How much can be claimed for travelling expenses?
A: The type of vehicle that the worker drives determines the amount that can be claimed for travelling expenses. From 23 November 2009, the applicable rates were $0.4117 per kilometre for vehicles under two litres and $0.4787 per kilometre for vehicles over two litres. To make a claim, use a travel reimbursment form.
Q: When can we settle a claim?
A: Claims may be settled by agreement between the parties after two years. Any settlement prior to two years requires the approval of the Tribunal. See settlement of a claim for further information.
Q: Is the worker entitled to a lump sum?
A: A worker suffering a permanent impairment may be entitled to receive a lump sum payment in addition to their normal weekly payments. The amount paid is based on an assessment of the level of impairment.
Q: When can a claim be made for common law damages?
A: A worker may only sue an employer for damages under common law when the injury or disease results in a 20% or greater whole person impairment.
Q: Why do we need a rehabilitation provider?
A: The employer may choose to appoint a rehabilitation provider to assist in the management of certain workers’ compensation cases. The role of the rehabilitation provider is to, in consultation with the employer, medical practitioner and injured worker:
Q: A medical certificate has been received from an employee and we think he should have recovered from the injury by now. Can we dispute the certificate?
A: You cannot dispute a certificate if there has been no break in certification or no change in diagnosis. If you think the employee’s case is suspicious, you should refer the employee for an independent review.
Q: When is it appropriate to seek a GP report? For injuries such as sprains and strains (particularly to the back) should we request a report as a precautionary measure?
A: Generally for claims that look like they could become costly it is wise to request a report when the claim is first received. A good indication can be obtained from this as to what treatment will be required and the costs that may be involved.
Q: How long should treatment such as physiotherapy be approved for without being reviewed?
A: This depends upon the nature of the injury. As a general rule, soft tissue injuries should be resolved within six weeks. Treatment after this date should be reviewed by requesting a report from the treating specialist and/or the treating GP. If you believe the treatment is excessive, an Independent Medical Assessment should be arranged.
Q: If an employee requests a copy of their Independent Medical Assessment report, can we give it to them?
A: In general yes, but there may be some circumstances where this is not possible.