Calculating the cost of your workers insurance premium

Calculating the cost of your workers insurance premium

Your workers insurance premium is based on your industry, how much you pay in annual wages, and a range of other factors .
Every business faces different types of risk, which is why we apply a agio rate based on the diligence you work in. All premiums are calculated by taking your diligence classification pace and multiplying it with how much your business pays in wages. This is called modal performance premium.

If that count is $ 30,000 or less, you ’ re considered a little employer and your premium remains unaffected by claims costs if a worker is injured .
If your modal performance bounty is over $ 30,000, you ’ re considered a medium to large employer and your premiums are experience-rated. This means your bounty will be impacted by your claims performance .
To help keep premiums low-cost, we offer a range of incentives and discounts to businesses that demonstrate a impregnable base hit phonograph record and committedness to helping hurt workers return to work .
If you ‘re a new customer get a quick quote or take out a policy

Understanding industry classifications 

When you apply for a workers indemnity policy, you are required to give details of your clientele activities. This helps us allocate a Workers Compensation Industry Classification ( WIC ) ( PDF 0.4MB ) for your business .
If you have multiple separate and clear-cut occupation activities, the average performance premium formula ( wages x WIC rate ) is repeated for each applicable industry class, and the outcomes added together to produce the total average operation premium .

Declaring your wages

All businesses with standard policies must declare their wages annually to icare to ensure they are paying the chastise premium .
This is done by filling out the wages declaration imprint .
You are required to lodge a declaration at the end of your workers insurance policy period .
Learn more about declaring your actual wages

Factors in claims performance

As an experience-rated employer, your premiums may be affected as the leave of a claim .
Your claims operation is calculated at the reclamation date of your policy and includes your claims costs for the three years anterior to beginning of the policy period .
Your claims performance rate ( CPR ) rewards you with a lower premium if you have a good record of managing worker guard and recovery at work .
Your CPR is calculated by comparing your claims performance with early NSW businesses .
If your claims operation is better than the Scheme average, then your premium will be lower than your average performance premium.

Your claim costs will be the same for both your initial and hindsight bounty calculations. This means the hindsight agio calculation will not include the claims incurred during the policy time period .

Claims costs included in experience premium

certain claims costs are included in the premium calculation, while early claims costs do not impact premium .
premium affect costs include :

  • Weekly compensation
  • Provisional weekly compensation
  • Permanent impairment
  • Commutation payments
  • Common law compensation

Costs that don ’ t impact bounty include :

  • Journey claims
  • Recess claims
  • Health provider costs
  • Hospital and medical costs
  • Legal and interpreter costs
  • Estimates of future costs
  • Death benefits (fatality claims incur a separate one-off charge)

Download cost of claims definition 2021-22 standard policies ( PDF 0.6MB )

Loss prevention and recovery premiums

Loss Prevention and Recovery ( LP & R ) for large businesses allows you to work with us to implement programs within your organization to minimise your premiums .
If you have a LP & R intersection and would like to discuss your premiums please reach out to your Insurance specialist or electronic mail curie @ icare.nsw.gov.au .

    Premium adjustments

  • Dust Diseases contribution
    The naval special warfare Government provides compensation to hurt workers for dust-related diseases due to exposure to dust during their employment .
    This scheme is administered by icare dust diseases care .
    As an employer, you are required to pay the Dust Diseases contribution to fund this dodge. It is collected by workers policy on behalf of icare Dust Diseases Care .
    The Dust Diseases contribution is calculated individually and added to the workers compensation bounty .
    For more information on Dust Diseases rates for 2021-22 refer to the 2021-22 Premium rates table .
  • Mine Safety Fund premium adjustment
    The Mine Safety Fund was established by the Mine and Petroleum Site Safety ( Cost Recovery ) Act 2005 to provide for mine condom regulative activities undertaken by the NSW Government .
    If you are an employer with wages in the mine industry, you are required to pay a mine base hit fund premium adaptation. It is collected by icare.

    The alteration is calculated individually and added to the workers policy premium. The Mine Safety Fund premium allowance rate is set annually .
    The rate for 2021-22 is 0.7425 %, up from 0.6325 % .

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Category : Finance

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