WORKERS' COMPENSATION AND INJURY MANAGEMENT ACT 1981 - SECT 160

WORKERS' COMPENSATION AND INJURY MANAGEMENT ACT 1981 - SECT 160

160 .         Employers’ duty to be insured etc.; insurers’ duties

        (1)         Subject to this Act, every employer shall obtain from an approved insurance office and shall keep current a policy of insurance for —

            (a)         the full amount of the employer’s liability to pay compensation under this Act to any worker employed by the employer including any increase in amount occurring during currency of the policy; and

            (b)         the amount of the employer’s liability to pay damages to or in respect of any worker employed by the employer, other than a deemed worker of the employer, in respect of a compensable injury for which the employer is liable.

        (2)         An employer obliged by this section to effect or renew a policy of insurance shall, on applying to an approved insurance office, for that purpose, furnish to that office an estimate, made to the best of that employer’s knowledge, information and belief, of the aggregate amount of remuneration to be paid or payable over the period for which the policy is to be effected or renewed, and shall forthwith after the termination of that period —

            (a)         furnish a statement of the aggregate amount of remuneration paid or payable in fact; and

            (b)         include in that statement every sum paid during that period to an employee in respect of overtime worked by the employee.

        (2a)         Where, under section 10A, an employer that is a company applies to an approved insurance office under subsection (2) on the basis that any director of the company is a worker, that employer shall, in relation to each such director, furnish to that office, in addition to the information required to be furnished under subsection (2) —

            (a)         the name of the director; and

            (b)         in relation to that director in particular, the information, verified as required under subsection (2), that the employer is required under that subsection to furnish in relation to the employer’s workers.

        (2b)         After the termination of the period referred to in subsection (2), an employer referred to in subsection (2a) is to furnish to the insurance office —

            (a)         a statement of the aggregate amount of remuneration paid or payable in fact during that period to the director; and

            (b)         supporting particulars to verify the aggregate amount stated.

        (3)         An approved insurance office is to insure any employer requesting it for the amount of the liabilities for which the employer is required by subsection (1) to insure.

        Penalty: a fine of $2 000.

        (3a)         Where WorkCover WA permits an approved insurance office to cancel a policy or contract of insurance obtained by an employer under this section, the approved insurance office shall notify the employer of the cancellation within 14 days after the cancellation has effect.

        Penalty: $1 000.

        (4)         Where a policy or contract of insurance obtained by an employer from an approved insurance office under this section has lapsed, and —

            (a)         the employer is not insured against his liability to pay compensation under this Act or insurable damages; and

            (b)         the employer has incurred liability to pay such compensation or such damages after the lapsing of the policy or contract of insurance; and

            (c)         not more than 7 days have elapsed from the time when WorkCover WA received from that approved insurance office a statement in respect of the lapsed policy or contract under section 171(1)(b),

                the approved insurance office shall, notwithstanding the lapse of the policy or contract of insurance, be liable to indemnify the employer in respect of that liability as if the liability were incurred during the term of the policy or contract of insurance.

        (5)         Where an approved insurance office declines to indemnify an employer in respect of a liability referred to in subsection (4) in respect of which the approved insurance office would be liable to indemnify the employer if the liability were incurred during the term of the policy or contract of insurance, the approved insurance office commits an offence.

        Penalty: $2 000.

        (6)         A conviction for an offence under subsection (5) does not affect the liability of the approved insurance office under subsection (4).

        (7)         Where an employer has obtained a policy of insurance from an approved insurance office under this section, the employer shall ensure that a valid certificate of currency issued by the insurance office in respect of the policy is available for inspection at the employer’s principal office or place of business in the State.

        Penalty: $2 000.

        (8)         An employer does not have to comply with subsection (7) if it is not reasonably practicable to do so.

        [Section 160 amended: No. 44 of 1985 s. 34; No. 85 of 1986 s. 10; No. 96 of 1990 s. 37; No. 34 of 1999 s. 42; No. 42 of 2004 s. 120(2), (3) and 150; No. 16 of 2005 s. 11; No. 31 of 2011 s. 105; No. 12 of 2012 s. 5.]