Workers’ Compensation and Rehabilitation Act 2003

A self-insurer must lodge a security with the Regulator before the issue or renewal of a licence.

The security must be—

in favour of WorkCover; and

150% of the self-insurer’s estimated claims liability.

Also, if the security is a bank guarantee or financial guarantee, the security—

must be irrevocable and unconditional, including not being conditional on—

another right or obligation contained in another document; or

WorkCover proving that a demand has been made; and

must be payable immediately on demand; and

must not be given by an entity that is a related body corporate to the self-insurer; and

must be satisfactory to the Regulator.

The estimated claims liability—

must be assessed annually by an actuary approved by the Regulator; and

must be calculated in the way prescribed under a regulation.

The security must remain in force or, if it is a cash deposit, the Regulator must hold the cash deposit—

at all times during the period of the licence; and

after cancellation of the licence, as required by section 102.

The security is not liable to be attached or levied on or made the subject of any debts or claims against the self-insurer by a person other than WorkCover.

If a self-insurer lodges a financial guarantee under subsection (1) and the insurance company that gave the guarantee stops being an approved security provider, the self-insurer must—

notify the Regulator of the matter without delay; and

lodge another security under this section within 20 business days after the date of the notice given under paragraph (a).

In this section—

the liability for—

claims expected to arise in the 12 months after the assessment; and

existing claims incurred for which a self-insurer is liable under section 68C or 87; less

the total amount expected to be paid in the 12 months after the assessment.

a bank guarantee; or

a financial guarantee; or

a cash deposit.