WA: Employees get form of workers' comp under new laws

AAP General News (Australia)
12-24-2001
WA: Employees get form of workers' comp under new laws

PERTH, Dec 24 AAP - Workers and employers in Western Australia will be covered by a
form of insurance in the event of a terrorist act on a WA workplace, under new laws passed
overnight by the state's parliament.

The legislation makes WA the first state to provide legislative protection in the workers'
compensation field, which has been affected by changes in the insurance industry after
the September 11 attacks on the United States.

The international reinsurance market, which underwrites insurance companies against
large losses, has said it will withdraw cover for acts of terrorism following September
11.

From January 1 next year, the insurance industry will not provide cover for acts of
terrorism on all insurance policies.

WA Employment Protection Minister John Kobelke said the new legislation would protect
workers and employers from workers' compensation insurance problems.

Mr Kobelke said the legislation would provide a fund of up to $25 million, paid by
insurers, for compensation claims made on each event involving an act of terrorism.

The compensation would be paid through the Employer's Indemnity Supplementation Fund.

The legislation contains a sunset clause of two years from its operational date for
a reappraisal, but the WA government can end the legislation at any time within this period,
Mr Kobelke said.

This would occur if the federal government provided a national fund to cover terrorism
liability, he said.

"This legislation will protect both employers and employees against workplace injuries
from a terrorist act," Mr Kobelke said.

"By spreading the cost of any possible claims across all approved insurers and self-insurers,
any potential financial impact to individual insurers and self-insurers and any flow-on
cost to the community will be minimised.

"It will provide a form of insurance for employers and employees should there be a
terrorist attack on a workplace in WA."

AAP sd/ph/de

KEYWORD: TERROR INSURANCE

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