In Western Australia, employers are required by law to hold workers compensation insurance. Once an injured worker has their claim accepted, the insurer will tell the employer to start paying income compensation (in lieu of wages) at a rate specified in the Notice accepting the claim.
These payments made by the employer can then be claimed back through their workers compensation insurance if they want to, or they could bear the cost themselves if they wish. Regardless of what they do every week, you get paid the amount that is taken to be workers compensation payment, reducing the prescribed amount pool for income (in 2024/25, it’s around $264k).
The insurer is generally responsible for payment or reimbursement of medical expenses, travel, rehab, return to work provider (which you should choose yourself) and any lump sum payments in the case of permanent impairment or settlement.
When workers are injured, some are hesitant to make a claim for fear they’re doing wrong by their employer. You shouldn’t be deterred from making a compensation claim that could help you recover from your injury. Knowing who pays workers compensation will hopefully put your mind at ease and let you focus on what you’re entitled to.
What is Workers Compensation?
Workers Compensation is a type of insurance that provides coverage for workers who sustain work-related injuries or illnesses. This may include income compensation to cover lost wages, medical expenses, workplace rehabilitation and in some cases, lump sum payouts for permanent impairment. Any worker who has suffered a work-related injury requiring medical treatment or time off work is entitled to claim compensation.
What is Workers Compensation Insurance?
Workers compensation insurance reimburses employers for the costs that arise from a workers compensation claim. So, even though injured workers are paid through the employer, the insurer pays the expenses of the claim. Employers are required to obtain workers compensation insurance to cover their employees. This coverage protects both the worker and the employer from the financial and operational impact of a workplace injury claim.
Employers are required to provide their insurer any claim for work-related injuries within seven days of receiving them. The insurer then has 14 days to assess the claim and notify the worker and employer whether they have accepted, declined or deferred the claim as they need more information.
How Compensation Payments are Made
If an insurer approves a worker’s injury claim, the worker may receive payments to replace their lost wages, but it is capped (in 2024/25 it is $3,079.00 per week). The payment schedule usually matches the worker’s pay cycle, whether it’s weekly, fortnightly or monthly. Although the insurance policy covers these costs, the employer is responsible for paying the worker directly.
As for medical expenses, the injured worker will usually be required to make upfront payments until the claim is accepted. Once the claim is approved, some medical providers will bill the employer’s insurance company directly. All bills and invoices should always include the claim number and be submitted to the insurer as soon as possible.
If you’re still unsure about workers compensation or need help making a claim, contact Anvil Legal. Our workers compensation lawyers offer obligation-free consultation to review your case and determine your entitlements. Contact us today for a free claim assessment.
