Do I need it?Each State is different…..
If your company is in Victoria and pays more than $7,500 in ratable remuneration you will need a Work Cover policy. Directors and employees of Propriety Limited companies who receive wages are covered under Work Cover insurance.
If you are a sole trader or member of a partnership you are not considered an employee of your organization, and therefor you will not be covered by Work Cover. It is therefore wise to discuss with us loss of income policies.
What exactly does a Workers Compensation or Work Cover policy cover?If there is injury caused to a worker arising out of or in the course of any employment, the worker shall be entitled to compensation in accordance with the act. For the purposes of the act, an injury will be defined as any physical or mental injury including industrial deafness a disease contracted by a worker in the course of a worker’s employment (whether at, or away from, the place of employment) as well as a recurrence, aggravation, acceleration, exacerbation or deterioration of any pre-existing injury or disease.
It is also important to note exactly what “arising out of or in the course of any employment” refers to. Workers will only be entitled to compensation if the injury occurs in one of the following circumstances:
- while the worker on any working day that the worker attended at the place of employment having been present at the place of employment is temporarily absent on that day during any authorised recess and does not during that absence voluntarily subject himself or herself to any abnormal risk of injury
- while the worker is, having regard to the nature of the worker’s employment or any specific task which may require the worker to travel, travelling for the purposes of the worker’s employment
- while the worker is in attendance at any school for the purposes of any trade, technical or other training which the worker is required to attend by the terms of his or her employment or as an apprentice or which the worker is expected to attend by the employer
- while the worker is in attendance at any place for the purpose of obtaining a medical certificate, receiving medical, surgical or hospital advice, attention or treatment, receiving a personal and household service or an occupational rehabilitation service or receiving a payment of compensation in connection with any injury for which the worker is entitled to receive compensation or for the purpose of submitting to a medical examination required.
What does a Work Cover policy exclude?Under the current Work Cover legislation, there is no entitlement to compensation in respect of:
- a heart attack or stroke
- disease contracted in the course employment
- recurrence, aggravation or deterioration of any pre-existing injury or disease
UNLESS the worker’s employment was a significant contributing factor to the injury or to the disease.
Additionally, the policy will exclude injury arising out of mental illness caused by stress resulting from reasonable employment actions (such as demotion), injury’s which were deliberately or wilfully self-inflicted and those that result from serious & wilful misconduct: