Workers are ignorant of workers’ compensation coverage and there are wide differences among the states of amount of compensation for similar injuries, according to survey results issued yesterday.
A survey of 544 employees from all states (but not territories) done for Australian Casualty and Life Insurance showed that many employees thought they were covered when they were not, or thought they were entitled to higher benefits for longer periods than they really were.
The general manager of the company, Andrew Davidson, acknowledged yesterday his company’s vested interest in showing the inadequacy of compensation provisions because it sold insurance in the areas not covered by workers’ compensation.
The survey showed that 65 per cent of workers thought they were covered travelling to and from work, but some states excluded it or qualified it.
It found 41 per cent believed they would get their full salary for the duration of their injury. In fact most states limit the compensation amount and/or its duration. And 23 per cent wrongly thought that compensation would start in the first week of injury.
In Victoria the maxium weekly payment was $603 a week and in NSW $1052, both for a maximum of 26 weeks.
The survey showed wide disparities of payment for permanent loss. For example, the loss of a right hand in NSW was compensated by $90,895 in NSW, $76,960 in South Australia down to Queensland at the lowest at $49,920.
Bizarrely, the loss of a Queensland man’s testicles warrant compensation of only $35,660, whereas the castratee in NSW gets $61,030.
In general NSW is the most generous state and Queensland and Tasmania the least generous.
The survey did not include the ACT, but ACT law provides a maximum (now $86,356.58) which is indexed every three months. Compensation for various body parts are paid as a percentage of this maximum. The maximum is paid for loss of both eyes or only useful eye, loss of both hands, loss of hand and foot, loss of both feet.
The NSW maxium is $158,000.
The figures have no logic when compared. The ACT pays more for fingers than most states, but less than most states for arms and legs. In general, the ACT is among the low payers. For example, a Canberran’s foot is worth $52,000; and a Queanbeyaner’s $84,000.
Mr Davidson said woprkers’ compensation only paid fopr work-related injury; income-proection insurance could provide 24-hour coverage against illness or injury anywhere in the world. Also, sole traders and partners were excluded from workers’ compensation.