Author: Amanda Robinson
The State Insurance and Care Legislation Amendment Bill 2022 was introduced to the Legislative Assembly on 30 March 2022 by The Hon. Victor Dominello, MP. He states the bill “delivers a wide range of improvements” to the workers compensation regime such as it relates to claims by families for death benefit payments following the death of their loved one.
We are sceptical as to the benefits of the proposed legislation and the risk of diminishing statutory claims. Currently, there are strict provisions for payment of benefits once liability is accepted or proven. The new regime gives rights to parties to compromise claims where there are issues as to liability – for example where there is some uncertainty about the causal connection between the work injury and the worker’s death.
You can read Mr Dominello’s second reading speech can be read by clicking on the link here.
Mr Dominello states the amendments: “will give the families of deceased workers the option to settle their lump sum death benefit dispute in the Personal Injury Commission on a compromised basis” and “in a small number of claims, liability for the worker’s death is the subject of a genuine liability dispute in the commission…Depending on the outcome of the dispute, either the lump sum amount is payable or nothing is payable…This bill’s amendment will allow the parties to a genuine death benefit dispute to agree to settle their dispute for a compromised lump sum amount. This can be a lifechanging amount for those left behind. The legislation provides a framework for families to resolve disputes and to ensure that any settlement is reasonable, fair and proportionate.”
Whilst Mr Dominello says: “The bill puts in place controls to protect families”. Unfortunately, as a workers compensation solicitor, I am sceptical of the so-called protections and benefits to dependents. The power imbalance between insures and the claimants would enable insurers to reduce the amount of death benefits ultimately payable to dependents. If this Bill is passed, I suspect the insurers will decline liability more often, force the dependents to file in the Personal Injury Commission then make pitiful offers to which vulnerable dependents will likely accept because they are fragile and don’t want to fight. We will watch the passage of this bill through Parliament closely.
