Self Insurance

A self insurer is an organisation approved by the WorkSafe to manage it's own workers compensation claims and have full responsibility for meeting it's claims liabilities.

Role of Self Insurance

The role of self insurance in Victoria is to provide choice to eligible organisations[1] to manage and bear the costs and risks of their own claims. As an integrated component of the overall scheme, self insurance should:

• provide direct incentives to improve injury prevention and rehabilitation performance
• ensure that workers are treated fairly and equitably
• contribute to continuous improvement in health and safety and return to work performance
• facilitate best practice transfer across the scheme

Eligibility for Self Insurance

There are two main eligibility requirements:

• An organisation must be a body corporate, and not a subsidiary of another body corporate (other than a foreign company within the meaning of the Corporations Law that, when the application is made, is not a registered foreign company within the meaning of that law)
• Organisations must satisfy prescribed minimum requirements regarding financial strength and viability. That is, it must demonstrate that it is and would be capable of meeting its claims liabilities as and when they fall due

Applying for Self Insurance

Once an organisation has been declared eligible to apply, it must then submit a full application for approval as a self insurer. An application will be approved if the organisation is assessed by WorkSafe as being "fit and proper to be a self insurer" based on their financial strength and viability, resources to administer claims, incidence of injuries and claims costs, workplace health and safety, compliance and any other matters WorkSafe thinks fit.

Term of Approval

Initial approval to self-insure is given for a period of three years and any subsequent approvals are for four years. Terms and conditions may be placed against the organisation as part of the self-insurance approval.

Expectations of Self-Insurers

In the context of the Accident Compensation Act 1985 (VIC) (ACA), WorkSafe expects that self-insurers will have sufficient financial strength and viability to meet their claims liabilities, and that they are high performers in the other areas considered by WorkSafe and referred to in the ACA, including:

• Resources for administering claims (including claims management, occupational rehabilitation and return to work)
• Incidence of injuries and cost of claims
• Safety (including historical performance and current safety management systems)
• Compliance with the ACA, the Accident Compensation Regulations 2001 (VIC) (the “Regulations”) and any terms and conditions of approval
• Other matters as WorkSafe thinks fit

WorkSafe expects that self insurers will demonstrate continuous improvement in relation to these matters.

Renewal of Approval for Self Insurance

To continue as a self insurer an organisation must apply for renewal of approval at appropriate times. Such applications are assessed in a similar way to the initial application. In addition, the organisation’s compliance with the legislation and regulations is taken into account.

[1] An ‘organisation’ may refer to bodies corporate, the Municipal Association of Victoria (MAV) or partnerships, as defined in the Accident Compensation Act 1985 (Vic).