An Innovative Approach to Workers Compensation

The Local Government and Shires Associations of NSW (LGSA) have established a specialised insurer for local government workers compensation in New South Wales, commencing operations from 30 June, 2001 as StateCover Mutual Limited.

[ABN: 36 090 394 755]

Chairmans Report 2008-2009

Self Managed Workers Compensation

Across Australia self managed insurance in local government is growing. Successful workers compensation schemes for local government have operated in South Australia since 1986, Western Australia since 1995 and in Queensland since 1998.

Self management gives the industry ownership of the product, process and outcomes. It creates the highest incentive for industry performance and allows fine-tuning according to agreed benchmarks.

Although still subject to NSW workers compensation legislation, WorkCover and APRA regulations the Specialised Licence allows StateCover to tailor its own functions, including premium collection, claims / injury management and occupational health & safety – to achieve increased effectiveness and better financial and social outcomes for all stakeholders.

Benefits

StateCover is administered by people who appreciate the unique aspects of local government. Consultation and customer service feature highly in the scheme structure.

A range of innovative services are developed to assist member Councils improve their OHS and injury management performance. In-house services are complimented by coordination and monitoring of external service providers and the application of continuous improvement mechanisms.

It has been demonstrated that such a workers compensation scheme offers substantial benefits to local government, such as:

• Delivery of a wider range of services on an integrated and coordinated basis tailored to suit the industry’s needs;
• A more responsive and consultative level of service;
• Provision of expert loss management services to achieve development of accident prevention strategies that tackle industry specific problems and the sharing of such solutions amongst all member Councils;
• Coordination of external treatment / rehabilitation services and the development of best practice injury management strategies;
• Establishment of a local government specific workers compensation claims database and a comprehensive Occupational Health and Safety information database, accessible to all member councils;
• Greater ‘ownership’ and accountability towards the management of work related injury costs by participating Councils; and
• Real and sustainable cost savings arising out of a reduction in claims frequency and severity.

Structure of operations

• Centralised administration with commitment to regional resources for quality, integrated services in relation to:
  • accident prevention / OH&S risk management
  • injury management and rehabilitation
  • training / consultative services
  • medical, investigative and legal consultation
• Specific claim staff are allocated to each member Council.
• Integration of injury and claims management processes, utilising evidence-based injury management protocols specifically tailored for local government.
• Provision of expert advice and assistance to Councils on OHS or workers compensation related issues. OHS Advisors available for individual Council assistance and regional implementation of industry prevention initiatives.
• Online reporting of incidents / claims via a secure StateCover website and online access to a suite of claim reports from the website.
• Coordination of comprehensive information / training programs for various levels of Council staff to broaden understanding of best practice initiatives.

Ownership

• StateCover is a public company with a share capital and limited liability.
• The designated scheme manager is Jardine Lloyd Thompson Pty Ltd.
• Shareholders are the Local Government and Shires Associations NSW (LGSA) and member Councils.

Board of Directors

StateCover is administered by a Board of Management whose responsibilities include:

• monitoring the performance of StateCover;
• developing policies and strategies to ensure continued financial viability;
• determining annual contributions (after taking actuarial advice) in accordance published premium rating methodology;
• administering the scheme rules as set out in the StateCover Constitution
• monitoring the performance of the scheme manager.

From November 2003 the Board of Management is as follows:

• 4 Council member directors as nominated from the Local Government Association and / or Shires Association as per Section 14.3 of the Constitution.
• One Administration Representative from LGSA.
• 2 nominees from member Councils.
• 3 nominees from the Scheme Manager.
• 1 insurance industry experienced nominee.
• in addition to the Board of Directors there is 1 individual nominated as the Company Secretary.

The Chairman of StateCover is elected by the Board of Directors.

The Board has established the following sub-committees which include Board and non-Board representatives:

• Remuneration Committee
• Audit Committee
• Operations Committee
• Risk Committee
• Investment Committee

The scheme manager is responsible for all claims and other administration of the scheme on behalf of StateCover.

For further information or to discuss the possibilities of joining the StateCover Scheme contact feedback@statecover.com.au.