Workers Compensation Industry Classification (WIC) Review

Free Health Check

Am I Paying the Correct Premium?

It’s a reasonable question to pose, and 99 per cent of Australian companies did so. The Workers’ Compensation scheme in each state is regulated by the government. The various schemes are run in a variety of ways, and insurers play a variety of responsibilities within them. Insurers are privately underwriting their schemes in Tasmania, the Northern Territory, Western Australia, and the Australian Capital Territory. The state of Victoria, Queensland, New South Wales, and South Australia wholly run the scheme.

Remuneration In Broad Definition

Gross Wages, Salaries, Superannuation, and other benefits

The full guide can be found here.

Your WIC Explain!

Please note that the explanation is only intended to serve as a basic guide, as each legislative scheme differs slightly in terms of how WIC is allocated, and the process used to determine the premium.

The following are the key elements that influence the amount of premium that must be paid:

• remuneration
• claims costs
• the applicable premium rate (measured by the employer’s performance)

The WorkCover Industry Rate is determined each year by the WorkCover Authority in the appropriate state and the claims experience of the industries in which the employer operates. The higher your remuneration is and the more WorkCover claims you have, the higher your premium will be. As a result, early intervention and aggressive claim management from the start are critical for future premium reduction.

Claim costs, employer’s performance rate and remuneration are not the only factors that influence your premium. Reviewing your WorkCover Industry Classification (WIC) is another essential aspect of lowering your premium. Your WIC is assigned by WorkCover Authority based on your “predominant activity” at the time you submit your WorkCover application. Many WICs were improperly assigned by insurers, as we discovered:

• The information provided on the insurer’s application was either ambiguous or gave a poor description of the company’s activity, resulting in an inaccurate categorisation and payment of an incorrect premium.

• In the instance of best fit, the insurer may have selected the erroneous activity and assigned an incorrect categorisation due to human error. You should check your policy because there are so many activities with different premium rates within the same industry.

• Since the policy’s inception, if the business activity has changed over the years, it’s possible that your WIC has altered as well.

The WIC Is Determined by the Following Methodology – a two-step process

Step 1: Division – determine which division your business is classified under.

Each of the divisions below contains an introduction that gives essential information about the types of activities that are included in that division and is used in the process of designating the primary activity of the workplaces.

The Australian Bureau of Statistics determines the WIC allocation for each state and territory (ABS). All the ABS divisions are listed below:

• Wholesaling
• Manufacturing
• Agriculture, Forestry and Fishing
• Mining
• Electricity, Gas, Water and Waste Services
• Construction
• Accommodation and Food Services
• Transport, Postal and Warehousing
• Information Media and Telecommunications
• Financial and Insurance Services
• Rental, Hiring and Real Estate Services
• Professional, Scientific and Technical Services
• Administrative and Support Services
• Public Administration and Safety
• Education and Training
• Health Care and Social Assistance
• Arts and Recreation Services
• Other Services

Step 2: Determine which class your Predominant Activity should be classified under.

Determine whether the most common activity at a workplace matches the business activity. Each division will contain various activities that describe your company activity, and if your business activity isn’t included, it will be assigned to the division in the case of “best fit” where your business activity is listed.

Reviewing Your WIC

According to the process outlined above, insurers may make an error when allocating your WorkCover Industry Classification. The inaccuracies are due to the business description you supplied on your application form or a change in your business activity since the policy’s establishment. myWorkCover Solutions can assist you in this regard. We can conduct a free “health check” to evaluate if your WIC is categorised correctly and appropriately. We can even backdate the expected premium to the previous five years.

Even if you’ve already had a broker assess your WorkCover policy, it’s worthwhile to have myWorkCover check it again. We are optimistic that we will be able to locate information that will allow us to reclassify your business activity.

For a “free health check”, please download and complete the LOA (Letter of Authority) and email it to: healthcheck@myworkcover.com.au

Follow Us & Connect!

Featuring myWorkCover about-us

Scan our QR Code to connect!

Disclaimer:

The information in this post is strictly for informational and educational purposes only and should not be construed as legal advice. It is not intended to express specific opinions about specific cases. Before acting on any of the issues discussed in this post, seek additional advice. The information provided should not be relied on for any purpose other than to assist you in understanding how Workers’ Compensation insurance works. It is for illustrative purposes only and My WorkCover Solutions Pty Ltd does not accept liability for any loss or damage suffered by any person resulting in any way from the use of or reliance on, the information provided. The information in this article is believed to be correct as of the date of publication. However, changes in the applicable laws may have an impact on the accuracy of the material. This article contains general information that is not tailored to any specific person’s situation. This publication may contain information that relates to the regulation of Workers’ Compensation insurance in your State or Territory. To ensure you comply with your legal obligations, we would recommend you refer to the appropriate legislation as currently in force in the State or Territory you conduct your business. You can find up-to-date legislation by visiting each state’s WorkCover Authority website, alternatively contact myWorkCover for updated information.