Worksafe Vic in solid financial position – yet inappropriately rejects claims


On Friday 20 September WorkSafe Victoria’s CEO Denise Cosgrove boasted about the scheme’s solid financial results! How interesting given that the scheme was recently under fire for “inappropriately rejecting claims”, calling for a parliamentary inquiry into the conduct of agents and WorkSafe as a result of these figures.

“The figures confirm that WorkCover’s agents [the insurance industry] have got out of control, rejecting and terminating workers’ entitlements without any real scrutiny from WorkSafe,” Mr Lewin said.

“Agents are reversing the onus of proof, rejecting claims, and forcing workers to either walk away, or proceed to the court for justice.”…

In addition to the solid financial results, Ms Coscrove has also demanded the Victorian injured workers be denied access to common law damages claims.

Worksafe Vic in solid financial position – yet inappropriately rejects claims

Record safety performance delivers solid result

By Worksafe Vic

A record low rate of workplace injuries and ongoing improvements in scheme management have helped deliver a sound 2012/13 financial result for WorkSafe Victoria.

WorkSafe Chief Executive, Denise Cosgrove, said Victoria’s employers and employees had worked hard to reduce injury rates and, together with agents and WorkSafe staff, had helped create strong claims liability results.

“The number of claims per million hours worked fell to 7.53 as Victorian workplaces continued to improve their safety performances. That is a fall of 6.6 per cent on the previous year and once again confirmed Victoria as the safest state in which to work,” Ms Cosgrove said.

“Strong scheme management delivered improved performance from insurance operations (PFIO) of $119 million, underpinned by an actuarial release of $179 million. Both figures reflect the ongoing health of the scheme.”

Ms Cosgrove said Performance from Insurance Operations (PFIO) was the clearest measure of WorkSafe’s financial results because it stripped out all external factors such as global investment returns and interest rate changes, which can otherwise mask scheme performance.

“Our PFIO, which was $84 million above budget, gives us an accurate picture of how well costs and liabilities associated with the scheme have been managed,” she said.

Ms Cosgrove said the actuarial release had exceeded its target and reflected the efforts of those involved in helping injured workers get back to safe work sooner, and in managing other claim costs.

Ms Cosgrove said WorkSafe’s net result was $1.084 billion, which was significantly assisted by improved investment returns and changes to economic assumptions such as inflation and discount rates.

“In 2012/13, we paid almost $1.6 billion in compensation, treatment and rehabilitation benefits to injured Victorian workers,” she said.

“Taken as a whole, these results indicate that the scheme is in a sound financial position.”

Ms Cosgrove said Victoria’s average premium rate of 1.298 per cent remained the lowest in the state’s history and the lowest rate in the country. “This is a great outcome for all Victorian businesses which benefit from being part of a high quality scheme that keeps costs down.”

Ms Cosgrove said that while the results for 2012/13 were pleasing, WorkSafe has put in place a clear strategy to deal with the challenges of a changing socio-economic environment.

“Changing patterns and types of work, economic conditions, and an ageing workforce will increasingly affect workplace safety and return to work opportunities,” she said.

“While we have made steady gains over a sustained period of time, forward trends are showing that improvements are slowing. As a result, we have begun to introduce a series of strategic initiatives designed to keep improving workplace safety and deliver strong return-to-work and service rates while keeping premium costs low and achieving our longer term performance targets.

Are these long term performance targets the  bit where she refers to the ‘crackdown on Vic injured workers” (meaning inappropriately denying injured workers claims) and her desire to abolish our common law access? We think so!

As we stated in our article titled “The consequences of implementing lumspum & common law claim thresholds “, Injured workers should never be denied the same rights as other citizens and should have full legit workcover claims and access to common law. For Workcover to suggest otherwise is disgusting and deserves of the sternest criticism by unions and the community at large as being completely self interested.
People like our very own- duped “fishface”- WorkSafe Victoria CEO,  also have a duty of care not to make careless, reckless, fully sick  and plain wrong statements that workcover claims or common law damages claims are ‘out of control’.

We say shame on you Miss Cosgrover for your repulsive and financially irresponsibility and self interest to suggest that the scheme is in a strong financial position as clearly you fail to admit how you achieve your “figures”, by shoving genuinely injured workers (injured through negligence of  tortfeasors = employers) onto social welfare and as such onto the taxpayers.

The title of your article is also most deceptive – we have yet to see some funding spent on actual, real safety improvements!


Financial results at a glance

Financial results 2012/13 2011/12 2010/11 2009/10 2008/09
Performance frominsurance operations $119m $385m $294m $654m $277m
Actuarial release $179m $182m $136m $189m $78m
Net result after tax $1.084b ($676m) $521m $176m ($1.255b)
Funding ratio 108% 96% 108% 100% 97%
Average premium 1.298% 1.338% 1.338% 1.387% 1.387%

Average injury insurance premium rates

Year Vic Comcare Qld WA NSW Tas SA
2011/12 1.338% 1.41% 1.42% 1.547% 1.68% 2.19% 2.75%
2012/13 1.298% 1.80% 1.450% 1.691% 1.68% 2.28% 2.75%
2013/14 1.298% 1.82% 1.42% 1.668% 1.554% 2.36% 2.75%



8 Responses to “Worksafe Vic in solid financial position – yet inappropriately rejects claims”

  1. Worksafe Victoria have recently released their annual report and presented financial year outcomes to stakeholders. It has revealed a huge dividend payment of $193 million to the State Government. This is an increase on the $126.5 million that was to be extracted in the 2012-13 financial year, according to Government announcements made last year.

    Again why are there no improved benefit delivery to injured workers? Rather than extracting profits of this magnitude!!!

    workcovervictim3 October 18, 2013 at 11:15 am
  2. That is so right, if any word of this glowing report makes sense, Then the report must contain the number of claims received, the number of claims approved and the number of claims not approved and most importantly the reasons why. If not it is just a lump of fallacy.

    • @Richmond, these kinds of report are not designed to makes sense 🙂

      They have to be published and all they do is justify the their own existence! 🙁

      Some facts are there, it’s how they manipulate or present them to show how well they are doing.

      Think of it, mmmm, like reading an IME’s report. Some facts are included, the rest are misinterpreted or quoted out of context 🙂

  3. Worksafe are a bunch of spineless lying assholes that do nothing but cover shit up and line there own pockets! useless

    ........................ September 26, 2013 at 8:22 pm
  4. How does worksafe fir in? The insurance company is who I send everything to for approval…..sometimes they will send back and say worksafe does not have that on the list etc…..does the ins comp get money back from w/s?

  5. So glad that she is managing her interest rate charges. From having all medical treatment denied and weekly benefits stopped it will be 11 months from getting a genuine dispute certificate issued to get to court, a risk of being homeless and no income to buy the $240.00 per month medication , not having the money to continue further injury treatme nt that is needed because of the neglience of an employer. You are a star for low lying fruit, pat yourself on the back! All you have done is move your liability to tax payers and put your obligations on to Medicare, nfp organisations to give us food parcels. Mask your performance is an understatement.

  6. I’m one of those who had the workcover claim rejected, you see how the system makes good numbers for their investors!

    Workcover should make available to the public how many injured workers have had their claims rejected and also they should show how and what were the reasons.