Workers Compensation Regulation 2016

An insurer must not enter into a commutation agreement with an injured worker for more than $100,000 unless the worker has received independent financial advice paid for by the insurer.

If an injured worker notifies an insurer that the worker requires independent financial advice for a proposed commutation agreement for $100,000 or less, the insurer must pay for the advice.

An injured worker who intends to obtain independent financial advice must notify the insurer of the following—

the name and contact details of the financial advisor,

the Australian Financial Services licence number under which the advisor operates,

the advisor’s quotation or other estimate of the cost of the advice.

An insurer must not pay for advice under this clause unless the financial advisor giving the advice operates under an Australian Financial Services licence.

The maximum cost an insurer must pay for financial advice under this clause is $2,500.

To avoid doubt, an insurer must pay the financial advisor directly for advice given to a worker under this clause.

This clause does not apply to a class 3 case.

In this clause—