Workers Compensation and Injury Management Act 2023

If the employer insured under a workers compensation policy becomes incapable of being proceeded against —

the insurer has, to the extent of its liability under the policy, the same liability to a worker of the employer and the same rights and remedies in respect of that liability that the employer otherwise would have had to that worker and in respect of that liability; and

a worker of the employer may proceed against and recover from the insurer on the basis of the liability that the insurer has under paragraph (a).

For the purposes of this section, an employer becomes incapable of being proceeded against if the employer —

in the case of a corporation — has commenced to be, or has been, wound up or has ceased to exist; or

dies, cannot be found or no longer resides in Australia; or

has ceased to carry on the business, or business of the kind, to which the policy related.

If, under subsection (1), the liability of the insurer of an employer is less than that which the liability of the employer to the worker would have been, the worker may proceed for the balance —

against the employer; or

in the bankruptcy or liquidation of the employer; or

against the personal representative of the employer.

The rights and remedies of a worker against an insurer under this section are not limited by any agreement or arrangement between the employer and the insurer before the employer became incapable of being proceeded against.