ACT Employers Indemnity Insurance Policy
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ACT Employers Indemnity Insurance Policy Policy No. Estimated Earnings $ $ (Subject to adjustment as provided below) Premium Whereas by virtue of the Workers Compensation Act 1951 (ACT) (the Act ), it is provided that an Employer must obtain/maintain from an approved Insurer, a compulsory policy of insurance for an unlimited amount in repect of any liability of the Employer a. under this Act; or b. independently of this Act; for any injury to, or the death of, any ACT worker employed by the Employer and that complies with this Act (as provided by section 144(1) (a) & (b) & section 147 (1) of the Act) and whereas (Hereinafter called the Employer), is carrying on the business of of (Address) and no other for the purpose of this Policy at in the Australian Capital Territory, and has made to Catholic Church Insurance Limited an Insurer approved under the Act (hereinafter called the Insurer) a written Proposal and Declaration, dated the / / containing certain particulars and statements which it is hereby agreed shall be the basis of this contract and be considered as incorporated herein. Now this policy witnesseth that in consideration of the payment by the Employer to the Insurer of the above mentioned Premium (which Premium is subject to adjustment as hereinafter provided) if, between the / / and 4pm on / / and thereafter to 4pm of the last day of any subsequent period in respect of which the Premium shall have been paid to and accepted by the Insurer, the Employer shall be liable to pay compensation under the Act to or in respect of any person who is or is deemed by the Act to be a worker of such Employer or to pay any other amount in respect of the Employer s liability independently of the Act for any injury to any such person, then and in every such case, the Insurer will indemnify the Employer against all such sums for which the Employer shall be so liable; the Insurer will also pay all costs and expenses incurred with the written consent of the Insurer in connection with the defence of any legal proceedings in which such liability is alleged. Provided that this Policy shall not extend to any business or occupation other than that described herein, unless and until particulars thereof shall have been supplied to and accepted by the Insurer and the acceptance of such extension endorsed hereon by the Insurer. And it is hereby further agreed that the above indemnity is subject to the due and proper observance and fulfilment by the Employer of the conditions hereunder. And the Insurer shall be (a) directly liable to any worker, and in the event of the worker s death to his or her dependants, to pay the compensation for which the Employer is liable and in respect of which the Employer is indemnified under this Policy, and (b) bound by and subject to any order, decision or award made against the Employer of any such worker under the provisions of the Act or in respect of the Employer s liability independently of the Act and in respect of which the Employer is indemnified under this Policy. Provided 3
lastly that this Policy shall be subject to the Act and the Rules and Regulations made thereunder, as in force from time to time, all of which shall be deemed to be incorporated in and form part of this Policy. Conditions Non Indemnity to the Employer 1. The Insurer will not indemnify the employer for any amount for which the Act expressly states that the Employer is not to be indemnified, for example: If an Employer is given an injury notice for an injured worker, but does not give the Insurer the injury notice within 48 hours after becoming aware that the worker has received a workplace injury: a. the Employer will be liable to pay the worker weekly compensation from the end of the notification time until the employer gives the Insurer the injury notice, and b. the Employer will not be indemnified by the Insurer for a payment mentioned in subsection (a) above. Notices 2. Every notice or communication to be given in writing (pursuant to the Act), or made under this Policy shall be delivered at the Office of the Insurer from which the Policy has been issued. Claims 3. The Employer must give the Insurer notice of the injury (an injury notice) within 48 hours after becoming aware that the worker has received a workplace injury. The notice must contain at a minimum the information as set out in section 94 of the Act. The Employer may give the notice orally, in writing or electronic form however, if it is given orally, the employer must give the notice in writing or electronic form within 3 days after giving the notice orally. Compliance with Act by Employer 4. An Employer must comply with all the obligations as set out in the Act, in particular chapter 5 (Injury Management) and section 126 of the Act (Action by employer in relation to claims) i.e. a. Chapter 5 of the Act: i. To establish a system the aim of which is to achieve the best results for the timely, safe and durable return to work of workers following workplace injuries ii. iii. iv. Comply with obligations under the Injury Management Program Give notice of injury to the Insurer Take part and cooperate in establishing a personal injury plan for a worker, and to comply with the plan v. Provide suitable work for an injured worker vi. vii. Establish a return to work program Keep and maintain a Register of Injuries at every work-site b. Section 126 of the Act; i. If an Employer receives a claim for compensation or another document in relation to a claim the Employer must, within 7 days of receiving the document forward it to the Insurer 4 ii. If the Employer receives a written request from the liable Insurer, for further information in relation to the claim, the Employer must, within 7 days after receiving the request, either give the Insurer the requested information or tell the Insurer in writing that the information is not in the employer s possession and is not reasonably obtainable. 4
Employer not to make admissions Defence of proceedings 5. The Employer shall not, without the written authority of the Insurer, incur any expense of litigation, or make any payment, settlement, or admission of liability in respect of any injury to or claim made by any worker. 6. The Insurer shall in respect of anything indemnified under this Policy, including the bringing, defending, enforcing or settling of legal proceedings for the benefit of the Insurer, be entitled to use the name of the Employer. The Employer shall give all necessary information and assistance, and forward all documents to enable the Insurer to settle or resist any claim as the Insurer may think fit. Subrogation 7. The Insurer shall be entitled to use the name of the Employer in any proceedings to enforce, for the benefit of the Insurer, any order made for costs or otherwise, and shall have the right of subrogation, in respect of all rights which the Employer may have against any person or persons who may be responsible to the Employer or otherwise in respect of any claim for any injury covered by this Policy, and the Employer shall as and when required execute any necessary documents for the purpose of vesting such rights in the Insurer. Precautions 8. The Employer shall take all reasonable precautions to prevent injuries. Injuries 9. So far as reasonably practicable, no alteration or repair shall, without the consent of the Insurer, be made in any ways, works, machinery, or plant after injury to a worker shall have occurred in connection therewith until the Insurer has had an opportunity of examining the same. Inspection 10. The Insurer shall have the right and opportunity at all reasonable times to inspect the plant, works, machinery and appliances used in the Employer s business. The employer will at all times allow any officer duly authorised by the Insurer to inspect the Wages Book in accordance with the Act. Premium 11. The first and every subsequent premium that may be accepted shall be regulated by the amount of all wages, salaries and other forms of remuneration paid or allowed to workers during each period of indemnity. Wages books must be kept Renewal of the policy 12. The name and earnings of every worker employed by the Employer shall be entered regularly in a proper Wages Book, so that a record may exist of such workers as are entitled to call upon the employer for compensation. The Employer may need to allow authorised people to examine records of wage estimates, as the Minister deems appropriate. (Note: section 179 of the Act allows the Minister to authorise people with accounting or auditing skills to examine the Employer s wage records) 13. When applying to the Insurer for the issue or renewal of a compulsory insurance policy, an Employer must give the Insurer, pursuant to section 155 of the Act, in relation to the period relevant to working out the premium payable for the issue or renewal of a compulsary insurance policy (the proposed period) an estimate of: a. the number of ACT workers in each determined category to be employed by the Employer in the period; and b. the total wages to be paid to ACT workers in each determined category in the period; and c. the number of paid and unpaid workers who will work for the Employer in the period; and d. the approximate amount of time each paid and unpaid worker will work for the Employer in the period. 5
Statement of total wages Adjustment of premium 14. If the compulsory insurance policy is renewed the Employer must, pursuant to section 156 of the Act, within 30 days after the day the policy is renewed, give the Insurer a statement of total wages paid by the Employer to ACT workers in the period from the day the policy was issued or (if it had already been renewed) last renewed to the day before the last renewal. 15. If an Employer has a compulsory insurance policy the Employer must, within 30 days after the end of the policy, pursuant to section 157 of the Act, give the Insurer a statement of the total wages paid by the employer to ACT workers in the policy period. If the total amount shall differ from the amount on which premium has been paid, the difference in premium shall be met by a further proportionate payment to the Insurer, or by a refund by the Insurer, as the case may be, subject always to the retention by the Insurer of the Minimum Premium stated in the Proposal. Information for new insurer after change of insurer Information about the reporting period 16. If the Insurer (the current insurer) issues a compulsory insurance policy to an Employer, and, immediately before the issue of the current policy the Employer was covered by a compulsoy insurance policy (the previous policy) issued by a different Insurer, the Employer must, pursuant to Section 158 of the Act, give the current Insurer a statement of the total wages paid by the Employer to ACT workers for the period the previous policy was issued. 17. The Employer must, within 30 days after the end of each reporting period, give the Insurer a statement pursuant to section 159 of the Act setting out: a. the number of ACT workers in each determined category employed by the Employer in the period; and b. the total wages paid to ACT workers in each determined category in the reporting period; and c. the number of paid and unpaid workers working for the Employer in the reporting period; and d. the approximate amount of time each paid and unpaid worker worked for the Employer in the reporting period. In this section: Reporting period, in relation to the Employer s compulsory insurance policy, meansa. the period (the first period) of 6 months beginning on the first day of the policy; and b. each successive period (the successive period) of 6 months following the first period; and c. if the policy ends, or is cancelled, on a day other than the last day of the first period or a successive period the period following the later of the first period or last successive period and ending on the last day of the policy. 6 6
Result of under-reporting of wages by Employer 18. The Employer must pay the Insurer the amount mentioned in regulation 66(2) ifa. the Employer, to obtain insurance from the Insurer, has told the Insurer the Employer is paying a stated amount of wages; and b. the amount of wages the Employer is paying is at least 10% more than the amount the Employer told the Insurer The amount payable to the Insurer is the amount equal to double the difference between the premium the Employer paid and the premium the Employer would have paid if the Employer had told the Insurer the true amount of wages the Employer was paying. Assignment 19. No assignment of interest under this Policy shall bind the Insurer unless the written consent of the Insurer is endorsed hereon. Cancellation of policy 20. An approved Insurer may cancel a compulsory insurance policy only in accordance with a protocol about cancellation approved by the Minister. Notwithstanding the cancellation of the Policy as aforesaid, the Employer must, within 14 days after the day the policy is cancelled, give the Insurer a certificate from a registered auditor stating the total wages paid by the Employer to ACT workers in the period from the start of the Policy until the cancellation of the Policy; The premium for the period of insurance prior to cancellation shall be adjusted on a pro rata basis in the manner provided by condition 15 of this Policy. Services under the policy 21. The following services will be provided by the Insurer: a. Assistance and guidance with Risk Management. b. Assistance and guidance in the development of the Employer s Return to Work Program. c. All obligations as set out in the Act for Insurers. No waiver of conditions Insurer to notify renewal 22. No condition or provision of this Policy shall be waived or altered unless the consent of the Insurer be previously obtained and signified by endorsement hereon, nor shall notice to any agent, nor shall knowledge possessed by any agent, or by any person, be held to effect a waiver or alteration in this contract or any part of it. 23. The Insurer will notify the Employer when the policy will end at least 30 days before the day the policy is to end. Signed by the Insurer s Date Authorised Representative / / 7
Important Notice to Policyholder The information set out above describes the terms and conditions of the contract you have arranged with us. We would like to be sure that you understand the cover provided and that it meets your requirements. If you have any queries, our staff will be happy to give you any further information you may require. How to Contact Us Mail Catholic Church Insurance Limited GPO Box 180 Melbourne 3001 Email underwriting@ccinsurance.org.au Website www.ccinsurance.org.au Telephone 1300 655 001 Facsimile 03 9934 3462 Catholic Church Insurance Limited ABN 76 000 005 210 AFSL no. 235415 8 CCI134 10/13 8