Weekend Write-Up Article 6 – Uninsured Employer

Uninsured Employer

Your rights when your employer does not have Workers Compensation Insurance to cover you in the event of a workplace injury.

COVID-19 has caused significant uncertainty to the li

From time to time we encounter an injured worker whose employer does not have a Worker’s Compensation Policy to cover them in the event of a workplace injury.

In New South Wales, it’s compulsory for all employers to take out a Workers Compensation Policy to provide coverage in an event of a work-related injury or illness. Fines and heavy penalties apply to employers or businesses who hire workers but do not have a valid policy in place to cover them

Sustaining an injury at work is difficult enough without the added stress that you could possibly not be covered by the Workers Compensation Scheme, especially when the injury puts you out of work for an extended period where treatment is required, such as surgery.

It is obviously no fault of your own that your employer did not have a Policy in place to cover you, as a result, an injured worker whose employer does not have Workers Compensation Insurance is covered by the governments safety net, Icare Insurance – Uninsured Liability Indemnity Scheme. This scheme then becomes the nominal insurer liable for claims lodged by you against the uninsured employer.

What this means is whether your employer does have a valid Workers Compensation cover or not, this should not affect you in an event of a workplace injury or illness.

Prior to accepting liability, Icare may conduct investigations to help determine liability and/or seek further information. These investigations are to determine:

1. The actual employer who employed you
2. Whether the employer who employed you was actually uninsured
3. Whether you are a worker as defined by the Workplace Injury Management and Workers Compensation Act 1998
4. Whether the injury for which you are claiming compensation occurred while you were working for the nominated employer, and the employment was a substantial contributing factor to the injury.

A worker who has suffered a compensable injury at work may be entitled to the following:

• Wages
• Medical, hospital and rehabilitation expenses including domestic assistance/care
• A sum of money to compensate permanent impairment suffered as a result of the injury
• Property damage.