Victorian Consolidated Legislation

Accident Compensation (WorkCover Insurance) Act 1993 - SECT 7

PART 2 WORKCOVER INSURANCE AND PREMIUMS

Compulsory WorkCover insurance

7. Compulsory WorkCover insurance



(1) An employer who in any financial year employs a worker within the meaning
of section 5(1) of the Accident Compensation Act 19851-

   (a)  must obtain and keep in force a WorkCover insurance policy with the
        Authority in respect of all of the employer's liability under the
        Accident Compensation Act 1985 and at common law or otherwise in
        respect of all injuries arising out of or in the course of or due to
        the nature of all employment with that employer on or after 4 p.m. on
        30 June 19932; and

   (b)  must not at any one time keep in force more than one such policy.

Penalty: 100 penalty units.

(1AA) It is a defence to a prosecution for an offence against subsection (1)
concerning an employer's liability in respect of injuries to a worker if the
court is satisfied that at the time of the alleged offence-

   (a)  the employer believed on reasonable grounds that the employer could
        not be liable under the Accident Compensation Act 1985 or at common
        law or otherwise in respect of injuries to the worker because under
        section 80 of that Act the worker's employment was not connected with
        this State; and





   (b)  the employer had workers compensation cover in respect of the worker's
        employment under the law of the State or Territory with which the
        employer believed on reasonable grounds the worker's employment was
        connected under section 80 of that Act.

(1AB) In subsection (1AA), workers compensation cover means insurance or
registration required under the law of a State or Territory in respect of
liability for statutory workers compensation under that law.

(1A) Subject to subsection (1B), subsection (1) does not apply in respect of a
financial year or part of a financial year during which the employer has
reasonable grounds for believing that the total rateable remuneration that the
employer is or will be liable to pay during that financial year does not
exceed the exemption limit3.

(1B) Subsection (1A) does not operate to exclude the application of subsection
(1) to an employer who employs an apprentice within the meaning of
section 5(1) of the Accident Compensation Act 19854.

(2) An employer is liable for an excess on each claim under a policy under
subsection (1) as specified in section 125A(3) of the
Accident Compensation Act 1985.

(3) The excess may be increased, reduced or eliminated in accordance with
sections 125A(6) and 125A(7) of the Accident Compensation Act 1985.

(4) An employer in respect of which subsection (1A) applies is deemed to have
in force a policy of insurance under subsection (1) with the Authority for the
purposes of this Act during the period in respect of which subsection (1A)
applies5.

(4A) The employer of a worker within the meaning of paragraph (d) or (e) of
the definition of worker in section 5(1) of the Accident Compensation Act 1985
is deemed to have a WorkCover insurance policy in respect of those workers
only and subsection (1)(b) does not apply in respect of such policy6.

(4B) Despite subsection (4A), the premium payable in respect of a deemed
WorkCover insurance policy under subsection (4A) is to be calculated in
accordance with the premiums order and is payable as part of the premium
payable for the WorkCover insurance policy held by the Department of Education
and Early Childhood Development as if7-

   (a)  the workers were employed by the Department of Education and Early
        Childhood Development; and



   (b)  the remuneration paid to the workers had been paid by the Department
        of Education and Early Childhood Development.



(4C) The employer of a worker employed under a program designed under
section 12(3) of the Transport Accident Act 1986 is deemed to have a WorkCover
insurance policy in respect of the worker only and subsection (1)(b) does not
apply in respect of such policy.

(4D) Despite subsection (4C), the premium payable in respect of a deemed
WorkCover insurance policy under subsection (4C) is to be calculated in
accordance with the premiums order and is payable as part of the premium
payable for the WorkCover insurance policy held by the Transport Accident
Commission as if-

   (a)  the worker was employed by the Transport Accident Commission; and

   (b)  the remuneration paid to the worker had been paid by the Transport
        Accident Commission.

(5) If an employer registered under section 197 of the
Accident Compensation Act 1985 is required to obtain and keep in force a
WorkCover insurance policy and has not on or before 4 June 1993 advised the
Authority of the authorised insurer with which the employer is to obtain a
WorkCover insurance policy, the employer is deemed for the first policy period
after 4 p.m. on 30 June 1993 to have a WorkCover insurance policy with an
authorised insurer specified by the Authority.

(6) If an employer fails to obtain or keep in force a policy of insurance as
required in accordance with subsection (1) in respect of any period, the
Authority may recover from the employer in a court of competent jurisdiction
as a debt due to the Authority a penalty of up to twice the amount of the
premium that would have been payable for the issue of a policy of insurance to
the employer in respect of that period.

(7) The Authority may recover any such penalty from an employer whether or not
the employer has been proceeded against or been convicted for an offence
against subsection (1) in respect of the employer's failure to obtain or keep
in force the policy of insurance.

(7A) Despite any other provision of this section, if the Authority is
satisfied that-

   (a)  the reason for the employer not obtaining or keeping in force a policy
        of insurance as required in accordance with subsection (1) in respect
        of injuries to a worker in a period is that the employer believed on
        reasonable grounds that the employer could not be liable under the
        Accident Compensation Act 1985 or at common law or otherwise in
        respect of injuries to the worker because under section 80 of that Act
        the worker's employment was not connected with this State; and

   (b)  the employer had workers compensation cover in respect of the worker's
        employment under the law of the State or Territory with which the
        employer believed on reasonable grounds the worker's employment was
        connected under section 80 of that Act-

the employer is not liable to pay a penalty under subsection (6) in respect of
that liability.

(7B) In subsection (7A), workers compensation cover has the same meaning as in
subsection (1AB).



(8) A WorkCover insurance policy issued or deemed to have been issued before
the commencement of Part 2 of the Accident Compensation (Amendment) Act 1998
is deemed to have been issued under this Act as amended by Part 2 of the
Accident Compensation (Amendment) Act 1998.

(9) A WorkCover insurance policy issued or deemed to have been issued under
this Act does not indemnify an employer in respect of any liability of the
employer to pay compensation for a matter for which compensation is awarded
under Subdivision (1) of Division 2 of Part 4 of the Sentencing Act 1991.