What is the Premium Discount Scheme?
How much is the discount?
Are there any other benefits?
Does your company qualify for a discount?
How can a Premium Discount Adviser help?
What are the benchmarks?
What is the process?
Who can undertake the audits?
Are all advisers the same?
What if we don't pass the audit?
How much does an audit cost?
How to get started?

What is the Premium Discount Scheme?

The Premium Discount Scheme is a WorkCover initiative that allows organisations meeting certain Occupational Health and Safety (OHS) and Injury Management (IM) standards (called "benchmarks") to claim a 30% discount on their workers compensation base tariff premium up to a maximum of $150,000 over a 3 year period.

The scheme is voluntary, and rewards employers who have programs that improve their workplace safety and have implemented return to work strategies for injured workers. Given that workers compensation insurance is often one of the biggest organisational overheads, considerable cost savings and significant indirect, intangible benefits can also be achieved.

How much is the discount?

Discounts on your workers compensation base tariff premium are available for a maximum of three years and could be worth up to $150,000.

For example:

• After the first year of the scheme, companies who achieve the benchmarks and pass the auditing process can claim a discount of 15% on their base tariff premium up to a maximum discount of $75,000 when the policy is renewed.
• In year two the entitlement is a 10% discount on the base tariff premium up to maximum of $50,000.
• In the third year the entitlement is a 5% discount on the base tariff premium up to maximum of $25,000.

Are there any other benefits?

The scheme is a particularly attractive proposition to employers and has added benefits besides the discount incentive. (Eg. Streamlined, more efficient work practices through the review of work methods and improved employee morale through the consultation process.)

The biggest tangible benefit however, especially to larger organisations, can often come from the resulting reduced accident rate and effective injury management with a corresponding reduction in costs and workers compensation premiums through a reduced claims experience factor.

Successful participation in the Premium Discount Scheme also goes a long way to demonstrating that an organisation and its management have discharged their obligations under the NSW Occupational Health and Safety Act 2000.

Does your company qualify for a discount?

To qualify, your company must meet the benchmarks and pass audits of your Occupational Health and Safety (OHS) and Injury Management (IM) systems. The audits have to be undertaken by a specialist Premium Discount Adviser (PDA) approved by the WorkCover Authority of NSW.

How can a Premium Discount Adviser help?

Your Premium Discount Advisor will be able to:

• Help you develop and implement your OHS and IM programs
• Audit your performance against the benchmarks
• Verify that your company is entitled to a discount.

What are the benchmarks?

During the first year, employers have to meet basic OHS and IM benchmarks. During years two and three, the aim is to build on, develop and improve these OHS and IM systems. If you are already using OHS and IM systems, these can be measured against the PDS benchmarks. It may well be that your company is already meeting the required standard in some areas. WorkCover's benchmarks cover six key areas:

1. Management responsibility
2. Training, learning and skills development
3. Consultation and communication
4. Records and record management
5. Risk management and process control
6. Injury management.

What is the process?

The scheme comprises four audits of organisational OHS and IM systems over a three year period. Two audits are conducted in the first year and one each in the second and third years.

• Audit 1 must be completed within the first six months of the policy (renewal) period and provisionally entitles the organisation to a 15% discount on the workers compensation base tariff premium when the policy is next renewed.
• Audit 2 must be completed within the second six months of the first policy year. It confirms the 15% discount and provisionally awards a further 10% discount entitlement for the following (second) year.
• Audit 3 must be completed anytime in the second year, it confirms the previous 10% discount for the second year and provisionally awards a further 5% discount entitlement for the following third year.
• The final 4th Audit is conducted anytime during the third year and confirms the previous provisional 5% discount.

Who can undertake the audits?

Only authorised WorkCover NSW Premium Discount Advisers (PDA's) such as Mend are approved to carry out audits to determine that an organisation qualifies for the discount.

Are all advisers the same?

Advisers are graded according to their level of expertise, experience, competence and performance and have a discount level that is set accordingly. For example each registered PDA has been given either a 5% 10% or 15% accreditation. Mend is accredited with the maximum level of 15%. Advisers discount levels are reviewed by WorkCover each year.

What if we don't pass the audit?

If an organisation does not meet the required standards (audited benchmarks) at any particular stage, they can defer to the following year and continue in the scheme, provided all four Audits are passed within a maximum five year period. An organisation can choose to withdraw from the scheme at any time without penalty.

How much does an audit cost?

Mend uses a sliding scale of charge according to the base tariff premium paid, the number of workers and different locations an employer has. Call Mend for a highly competitive and obligation free quote for the cost of auditing your company. Mend's pricing structure ensures that the scheme is also accessible to smaller employers.

How to get started?

Start immediately by contacting Adrian Thompson at Mend on (02) 9518 6329 or Brian Lally on (02) 9552 4630 to plan on reducing the costs of your workers compensation.