Table 8.5: Uninsured employer provisions | Safe Work Australia

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	Uninsured employer provisions
NSW	A claim may be made against the Nominal Insurer by any person in respect of an injury if the employer is uninsured or unable to be identified by the worker — s140, Workers Compensation Act 1987. The employer is required to repay the amount spent on the claim — s145, 1987 Act, plus penalties incurred for not maintaining a workers’ compensation insurance policy — s155, 1987 Act.
Vic	Where an employer is required to register for WorkCover Insurance and pay premium but has not done so, WorkSafe Victoria is liable to pay compensation and damages to injured workers in accordance with the Act and to indemnify the employer in respect of their liabilities under the Workplace Injury Rehabilitation and Compensation Act 2013 — ss70 and 71 WorkSafe Victoria may recover an amount, not exceeding the amount of compensation and damages which has been paid, as well as additional penalties from an employer which is required to register for WorkCover Insurance and pay premium but has not done so — ss34 and 488.
Qld	WorkCover may recover from the employer the amount of the payment made to an injured worker together with a penalty equal to 50% of the payment, as well as the amount of unpaid premium together with a penalty equal to 100% of the unpaid premium — s57.
WA	Claims are made on uninsured employers directly and they are required to deal with any claim as a self-insurer would. If an uninsured employer doesn’t pay compensation by the time required in the Act WorkCover WA may pay the claim via the Default Insurance Fund -s266. WorkCover WA can also exercise the rights of the employer -s277 and can recover costs from the uninsured employer. The Default Insurance Fund, established under the Workers Compensation and Injury Management Act 2023, provides a safety net to fund liabilities for claims relating to uninsured employers— s266, s267
SA	An injured worker can make a claim regardless of the status of the employer. The employer is required to register and pay a premium. If an employer fails to make a payment of compensation that it is liable to make under the Return to Work Act 2014 (e.g., first 2 weeks income maintenance), ReturnToWorkSA shall make that payment and will take all reasonable steps to recover the debt — s64(20).
Tas	The Nominal Insurer is an independent statutory body established to ensure that injured workers are not disadvantaged in circumstances where: the employer is not insured the employer has left the State and its whereabouts are unknown the employer or licensed insurer has become insolvent, or for any other reasons, there are reasonable grounds for believing that the employer or licensed insurer is, or is likely to be, unable to discharge in full any liability under the Workers Rehabilitation and Compensation Act 1988 — ss121 and 126. The Tasmanian Civil and Administration Tribunal can order the Nominal Insurer to meet the employer’s liability for the claim — s127. The Nominal Insurer will then attempt to recover the amount paid in relation to the claim from the employer or insurers involved — s130. An uninsured employer may be prosecuted and, if convicted, may be ordered to pay avoided premiums in addition to any fine the court may impose — s97(10).
ACT	The Default Insurance Fund (DI Fund) provides a safety net to meet the costs of workers’ compensation claims where an employer did not have an insurance policy or an approved insurer is wound up or cannot provide the indemnity required to be provided under a policy — s166A If an employer fails to maintain a compulsory insurance policy, the regulator may recover up to double the avoided premium for a period of up to 5 years, as a debt owing by the employer to the DI fund (s149). However, the employer is not liable under s(1) for a failure to maintain a compulsory insurance policy in relation to a worker if: the employer provides evidence that a State was the Territory or State of connection for the employment under the law of a State corresponding to part 4.2A (Employment connection with ACT or State) s149(2a), or the employer had insurance, or was registered, as required under a law of the State in relation to liability for workers’ compensation under the law of the State — s149(2b
NT	The Nominal Insurer Fund is established by the Minister and administered by the Nominal Insurer — s162. Where an employer is uninsured, the employer must forward the claim to the Nominal Insurer — s84. The Nominal insurer will manage and pay the claim — s85(10). The Nominal Insurer is entitled to recover compensation amounts paid, from the employer — s172(2). The employer shall also pay an amount equal to the highest premium payment for the period there was no cover, to the Nominal Insurer — s172(3).
Comcare	Not necessary within the ‘premium’ (Commonwealth and ACT Public Sector) component of the scheme as all employees are ‘Government’ employees. The Commonwealth could be considered to be the nominal insurer through the Department of Finance and Administration for injuries incurred before 1 July 1988. Liabilities of the Commonwealth (but not self-insured licensees) incurred before this date are not funded through the Comcare premium scheme. In the self-insured (licensee) component of the scheme, prudential arrangements including the requirement for a guarantee held by the SRC Commission ensure licensee liabilities are covered in the event of bankruptcy.
Seacare	A policy of insurance or indemnity is compulsory for all employers — s93. A statutory fund stands in the place of an employer’s if there is a default event in relation to the employer — s4(3) and ss96-102.
DVA	N/A
NZ	An employer must pay, in accordance with the Accident Compensation Act 2001 and regulations made under the Act, levies to fund the Work Account. The Scheme covers all workers regardless of whether their employer has breached the Act by failing to pay levies.