New compo costs ‘unworkable’

Yes, it is unworkable, all of it is

A PROVISION in new workers’ compensation laws that makes injured workers pay their own legal costs is unworkable, a Work Cover inquiry has found.

New compo costs ‘unworkable’

Work Cover appointed a group of lawyers and insurers to review the laws and it recommended the controversial provision should be removed.

The group said the costs provision would lead to an increase in the number of unrepresented parties and raise the workers’ compensation scheme’s administration costs.

”The provision is contrary to the long-standing rule that costs should follow the event so as to indemnify the successful party,” the report says.

”The current costs regime has kept disputation to a minimum and delivers certainty and equitable delivery of legal services on both sides.”

Christian Democratic Party MP Fred Nile introduced the amendment to the government’s workers’ compensation bill in the early hours of the morning during its passage through the upper house of Parliament.

The Law Society of NSW and the NSW Bar Association have written to the Finance Minister, Greg Pearce, warning the amendment will create ”chaos”.

”Under this new system, insurers will have the privilege of being able to fund their defence from employer premiums, whilst injured workers will have to bear their own legal costs, even where a legitimate claim has been denied,” the letter said.

”We are seriously concerned that this removes the incentive for insurance companies to support legitimate claims.”

Mr Pearce responded by saying the government does not have a majority in the upper house of Parliament.

”In seeking to engage further on the issue, I would encourage you to discuss such matters with the Christian Democratic Party and the Shooters and Fishers Party,” Mr Pearce said.

The Greens MP David Shoebridge said it was an ”extraordinary surrender of government policy”.

“The government voted for this disastrous change to the compensation system despite it being told at the time it was unworkable,” he said.

“It is irresponsible for the government to now say that it is up to Fred Nile and the Shooters to fix this.”

Unions NSW secretary Mark Lennon said it was disingenuous for the government to make Mr Nile responsible for removing the amendment.

“If the state government is genuine about ensuring sick and injured workers are not financially crippled by lodging workers compensation claims, it should approach the Labor Party and the Greens to pass an amendment,” he said. “The government cannot hide behind the crossbenchers on this issue.”

The president of the Law Society of NSW, Justin Dowd, said the government had distanced itself from the Nile provision on the basis that it does not control cross benches in the upper house.

“This is a tenuous argument, given that the whole reform process has been generated by the government’s legislation,” Mr Dowd said.

Mr Pearce said the issue of costs remained a priority for discussion and welcomed the involvement of the Law Society and Bar Association in ongoing consultations.

“It  is not unreasonable for the government to propose discussion of the issue with the CDP [Christian Democratic Party] and SFP [Shooters and Fishers Party]. It makes sense that various parties discuss costs with those that proposed such amendments,” he said.

About Workcovervictims

We are the authors, co-authors, seriously injured workers and invisible supporters (incl. abled family members and friends) behind A Diary of a WorkCover Victim. We hope this site, our and many other injured workers’ stories will somehow help other injured workers navigating the murky waters of the workcover system, and, at the very least, teach you to be extremely diligent in finding out your legitimate rights, always questioning the “system” in order to keep some sort of control within the workcover system. The workers compensation is – in our opinion- extremely adversarial and they use tactics to wear you down, to make you emotionally bleed out, to break you, all in order to weaken your position and to maximise their insane profits.

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14 Responses to New compo costs ‘unworkable’

  1. Phil August 20, 2012 at 2:04 PM #

    Dear victims

    In good faith this is experts’ opinion that you are still covered for legal costs for all legitimate claims. Many solicitors are still taking cases. So do not worry about that. However, it is recommended for small disputes to contact Claims Assistance Service.

  2. workcovervictim August 20, 2012 at 2:07 PM #

    What a holy mess it is indeed and look who’s hiding!! – Farrell needs to cop the blame, he fabricated the whole new sickening and totally unworkable legislation and should be held accountable for this insanity.

    • Phil August 20, 2012 at 3:17 PM #

      Indeed it is a complete mess.

      Though Mr. O’Farrell is directly responsible for this mess, I believe he is either brainwashed by the insurers or their representatives. To me he appears more arrogant and confused than a wise person otherwise he would have preferred going through the debate in the parliament as there is nothing as good as bipartisan support. But I have no doubt that his stupid decision would have been disastrous to many victims. I urge him to come out from his slumber, talk to all stakeholders and experts and reconsider his decision and its implications as soon as possible. Delaying it further would cost more to the society overall. Even if he considers his wonderful laws in favour of the society, what I have doubt of – he should come out to have a public debate.

      • Will August 20, 2012 at 9:35 PM #

        I am sure Barry does plan to hold another meeting with key stakeholders in this legislation(insurers) No Lawyers,No other MPs and certainly no people who are directly affected by this, Injured Workers.

  3. Angry August 20, 2012 at 4:30 PM #

    The Liberal Bull Shit Excuses just keep on flowing don’t they …
    Correct me if I’m wrong.
    The Liberal Government put a Sham Committee together, reviewed all submissions and then Rammed it through Parliament, then under the threats of Dumbo O’Farrell Winter Break would not start unless it passed. All this in a few weeks.
    Now we have Greg Pearce claiming they can’t do anything and to approach the Yet to be Charged with Perjury Shooters Party “Borsak” and Fred Senile the moron that introduced the amendment.
    Pearce also claims they don’t control the Crossbenchers : “ Pay rises, National Parks opened to Hunters”.

  4. Wroggle August 20, 2012 at 5:26 PM #

    We already have to pay our own costs in SA.

  5. johnny rotten August 20, 2012 at 6:16 PM #

    appointing insurers to review laws like fuck work cover you are all as thick as bricks there laughing and singing show me the money

  6. Bunny August 20, 2012 at 7:09 PM #

    I honestly believe that O Farrell, Pearce, Nile and others involved in this have received kickbacks for this decision. Remember the other day when James Packer visited Fred Nile and he suddenly changed his mind on smoking in the high rollers room in Casinos (yes payback). These kickbacks mostly happen when they leave politics, they get ‘loans’, special deals etc, and don’t forget Pearce used to work for the insurance company lawyers. The fact that O Farrell appointed Nick Greiner (the very Premier who had to leave because of ICAC investigations) as his de facto Premier is evidence of their gross corruption. Greiner went onto to work for Statewide Roads which benefited from tolls he put on roads. This is standard practice in the USA and now it is here, the only way to stop them is to expose them. Nothing shocks me anymore.

    • Stevie J August 20, 2012 at 8:48 PM #

      They are corrupt! That’s all there is to say coz I’m out… Corrupt!

  7. WorkcoverVictim August 20, 2012 at 7:43 PM #

    NSW lawyers say workers’ comp law favours insurers

    20 August 2012

    Lawyers in NSW have condemned a change to workers’ compensation legislation that makes injured staff pay their own legal costs, saying it favours insurers over claimants.

    “Under this new system, insurers will have the privilege of being able to fund their defence from employer premiums, while injured workers will have to bear their own legal costs, even where a legitimate claim has been denied,” Law Society of NSW President Justin Dowd said.

    “We are seriously concerned that this removes the incentive for insurance companies to support legitimate claims.”

    The society and the NSW Bar Association have called on the State Government to reverse the change.

    The Government amended its Workers’ Compensation Act in June, saying it needed reform to address a $4 billion deficit and improve care for the most disabled workers.

    The Christian Democratic Party (CDP) introduced the legal costs amendment when the bill went through the upper house of Parliament, where the Government does not have a majority.

    CDP leader Fred Nile says the amendment means parties have to pay their own costs, which stops workers having to pay “potentially massive legal bills incurred by insurance companies”.

    [source: insurance news]

  8. ithurts August 20, 2012 at 8:53 PM #

    In my opinion, it wouldn’t make any difference if the law of ‘good faith’ was corrected!

  9. Michelle August 21, 2012 at 10:07 AM #

    Anyone with half a brain can see that these laws will not work the changes were rushed through parliament and no real thought about the implications these laws will have on the injured workers or the workers comp system was considered .They need to go back to the drawing board and start again and this time make sure that the injured workers are more adequately represented and it is not voted on by bribe taking corrupt politicians .But lets see if these corrupt bastards are men enough to admit that these laws are unworkable and need to be scrapped

    • johnny rotten August 22, 2012 at 1:50 PM #

      man up don’t think so there gutless

  10. Phil August 21, 2012 at 1:06 PM #

    There might be a silver lining in this new WC law.

    For seriously injured workers under 30% WPI – If your injury does not heal in 13 weeks, or 130 weeks, you would not be entitled for any assistance.

    In that case you need to make a new claim and continue to loop around in the circle. So those people who expect to live next 20 years – have to make six new claims to continue receiving entitlements. What a wonderful law?

    Workcover says regarding Legal Cost: Can an injured worker claim legal costs?

    This provision is the result of an amendment to the Bill. It appears this change will mean anyone taking a worker’s compensation dispute to the Workers Compensation Commission will need to pay their own legal costs. A decision on its commencement date has not been made yet. ( http://www.workcover.nsw.gov.au/formspublications/publications/Documents/wc-faqs-3794.pdf )

    This “anyone” applies to insurers too. The question is – Will they be allowed to take out the money received as premiums to go against an injured worker in the court. I hope the premier could answer it otherwise it certainly would be called unfair? Then it would be a matter of investigation to find out who would be the real beneficiary of this unfair system.

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