How does workers compensation insurance compare to life insurance ?
Workers compensation is a form of insurance payments to employees, which covers their wages and medical expenses, however this is only available if you become sick or injured due to your work (reference).
Furthermore, the rules around workers compensation differ from each state. For example, in NSW, there are two entitlement periods (0-13 weeks and 14-130 weeks), where after 130 weeks, your clients payments will cease unless:
- You have been assessed by the insurer as having no current work capacity, and is likely to continue indefinitely, or
- You are working at least 15 hours per week and earning at least $196 (indexed annually), and that is likely to continue indefinitely, AND
- You have completed an application for continued weekly payments after 130 weeks form and this has been confirmed by the insurer.
NOTE: after 260 weeks, payments will cease unless you have been assessed as having an agreed permanent impairment of more than 20 per cent (reference).
DID YOU KNOW ?
- The median compensation paid for a serious claims was $11,500.^
- More than 50% of serious accidents happen away from work*
^Preliminary data subject to revision in subsequent years as further claims are finalised Australia Workers’ Compensation Statistics Report 2016-17 – Safe Work Australia
*Australian Bureau of Statistics National Health Survey – Summary of Results, Australia – 4364.0, 2004-2005 (reference).
Please note that information in our news feeds are general information and you should not act on it, or rely on it, without obtaining personal advice. To find out the insurance options that may be best suited to you, contact us. Always read the product disclosure statement issued by an insurer before considering to take out insurance.
