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Australia’s worker compensation schemes facing serious problems: ALA
Serious issues in the workers’ compensation schemes in NSW and Victoria highlight an urgent need for reform and require further investigation, says the Australian Lawyers Alliance (ALA).
Tony Zhang
ALA NSW president Joshua Dale said that that they were well aware of systemic failings in the system, however, “the alleged unethical conduct and financial mismanagement exposed in these media stories [are] extremely disappointing.”
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“It is very concerning to hear that multimillion-dollar contracts are allegedly being awarded with zero scrutiny at the same time as injured workers are being dragged through distressing dispute processes that ultimately undermine their ability to recover,” Mr Dale said.
In NSW the standing committee on law and justice commenced hearings on Tuesday in the 2020 Review into the Workers’ Compensation Scheme.
“We are calling for this review to look closely at the behaviour of icare in their hearings,” said Mr Dale.
“This is a perfect opportunity to more closely examine the serious issues exposed by the media.”
An investigation into Australia’s $60 billion workers compensation system had revealed that the two biggest schemes are losing hundreds of millions of dollars a year in what has been described as “immoral and unethical practices” by an industry ombudsman.
A joint Four Corners investigation with The Age and Sydney Morning Herald has found the schemes in Victoria and NSW are facing significant financial troubles.
The investigation has heard claims of insurance agents gaming the system for financial incentives and it reveals concerns that an underpayment scandal at the country’s biggest provider, icare, could cost up to $80 million – double what had been originally reported.
The investigation also obtained a copy of the draft report by KPMG into Brett Fitzpatrick’s case, which showed practices used to knock back claims, including doctor shopping, a practice in which insurers or employers use doctors who have a track record of toeing the line.
The draft report also refers to “missing files” and the altering of statements.
The ALA said they have made a submission to the review outlining a number of other areas within the NSW scheme that require urgent attention and reform.
“We need to remember that we are dealing with individuals who have been injured working to support themselves and their families,” Jeremy King, ALA Victorian president and lawyer, added.
“Unethical behaviour by insurance companies cannot be tolerated. Our priority must be to ensure that anyone who is injured at work receives the support they need and fair compensation to look after themselves and their families.
“We hope that, as a result of this public exposure, the unethical behaviour outlined ends now, and the rights and welfare of workers [are] prioritised and protected.”
