Business welcomes reimbursement of fraud-driven w/comp premium rises

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Business welcomes reimbursement of fraud-driven w/comp premium rises

The Ai Group has welcomed the NSW Government decision to reimburse employers for higher workers compensation premiums if claims turn out to be fraudulent.

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The Ai Group has welcomed the NSW Government decision to reimburse employers for higher workers compensation premiums if claims turn out to be fraudulent.

Ai Group NSW branch director, Mark Goodsell, said the Government move - announced last week - addresses a long-standing frustration.

‘Where the cost of the claim is built into the premium, if it turns out to be fraud there is no compensation to the employer,’ he told WorkplaceInfo.

‘There were companies that had crippling premiums based on fraudulent claims. So we welcome it, it is a matter that has annoyed the hell out of employers.’

However, Goodsell said the Government’s move was not as generous as it seems.

‘The only time costs of higher premiums will be reimbursed is where formal prosecutions have taken place and the claimants are convicted of fraud.

‘It doesn’t happen where the claim just looks bad once it gets to court, or is found not to be work-related. Even if the employer fights the case and wins there is no reimbursement for higher premiums,' he said.

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