Workers' Compensation in Western Australia Annual ......Workers' Compensation in Western Australia -...

Workers' Compensation in Western Australia

Annual Statistical Report

2010/11 to 2013/14

July 2015

Workers' Compensation in Western Australia - Annual Statistical Report 2010/11 to 2013/14

WorkCover WA


Perth, Western Australia: Western Australian Government

Any queries or comments on this publication should be directed to:

Business Intelligence Services Branch

Legislation and Scheme Information Division

WorkCover WA

Email: [email protected]

Phone: (08) 9388 5555

Fax: (08) 9388 5550

© WorkCover WA, Government of Western Australia

This publication is available at the WorkCover WA website:

www.workcover.wa.gov.au

Published by the Western Australian Government

Publication date: July 2015

WorkCover WA is the government agency responsible for overseeing the WA workers' compensation and injury

management system. WorkCover WA undertakes a range of educational, advisory, enforcement and performance

monitoring activities to ensure the WA workers' compensation scheme is fair, accessible and cost-effective for all

participants.

WorkCover WA produces a range of statistical reports which detail various aspects of the WA workers' compensation

scheme. These include:

• Scheme Quarterly Status Report

• Insurer Claim Quarterly Status Report

• Medical, Allied Health and Vocational Rehabilitation Services Status Report.

These reports are available on the WorkCover WA website at:

workcover.wa.gov.au/resources/research-evaluation-statistics/statistical-reports/

Citation

WorkCover WA

There is no objection to this publication being copied in whole or part, provided there is due acknowledgment of any material

quoted from the publication.

WorkCover WA 2 Data as at 31 January 2015

http://www.workcover.wa.gov.au/

http://www.workcover.wa.gov.au/resources/research-evaluation-statistics/statistical-reports/


The Western Australian workers' compensation scheme

Western Australia operates a privately underwritten workers' compensation scheme. This means that private insurance

agencies are approved to provide workers' compensation insurance to WA employers.

There are currently eight approved insurers operating within the WA workers' compensation scheme. The Insurance

Commission of WA (ICWA) is also an insurer in WA, providing workers' compensation insurance for government

agencies. In addition, WorkCover WA exempts employers who have the material and financial resources to cover

their own liabilities from any workplace injuries/diseases that may occur, from having to obtain workers' compensation

from an approved insurer. Exempt employers are commonly referred to as self-insurers. In 2013/14, there were 27

self-insurers within the WA workers' compensation scheme.

The role of insurers within the WA workers' compensation scheme is to:

• underwrite the risk of claim liabilities

• calculate and collect premiums within certain parameters set by WorkCover WA

• manage claims including injury management and in many cases return to work programs.

Figure 1 below provides an overview of claims within the WA workers' compensation scheme for 2013/14 and outlines

the scope of this statistical report. For the purposes of this report, only work-related injury and disease

claims (highlighted in beige boxes) are reported.

Figure 1: Profile of workers' compensation claims in the WA workers' compensation scheme in 2013/14

Introduction

workers’ compensation claims lodged

Asbestos related diseases, journey

claims and disallowed claims

work related injury and disease

claims lodged

work related injury and disease claims lodged

claims with no lost-time

claims with lost-time

lost-time claims lodged

lost-time disease claims

lost-time injury claims

36,876

1,314

35,562

35,562

18,605

16,957

16,957

1,416 15,541



Geographic distribution of lost-time claims in Western Australia

Region Proportion of

claims

Metropolitan 64.4%

Pilbara 8.9%

South West 7.0%

Wheatbelt 3.8%

Peel 3.7%

Goldfields-Esperance 3.5%

Midwest 3.0%

Great Southern 2.9%

Kimberley 2.3%

Gascoyne 0.5%

Introduction

In 2013/14, a total of 35,562 work-related injury and disease claims were lodged, of which 16,957 claims involved time lost

from work of one day/shift or more, while 18,605 claims did not result in any loss of time.

This annual statistical report focuses on lost-time claims as they have larger economic impact on the WA workers'

compensation scheme than those without lost-time.

The map illustrates the geographic distribution of lost-time claims across Western Australia in 2013/14. The Perth

metropolitan area had the highest number of lost-time claims (64.4%), followed by the Pilbara (8.9%) and the South West

region (7.0%). This pattern is reflective of population and employment density in Western Australia.



Where does the data come from?

Table 1: Summary of national classification standards to code workers' compensation data

Where do I obtain more information?

About this report

Workers’ Compensation in Western Australia Annual Statistical Report

WorkCover WA’s annual statistical report is designed to provide stakeholders with an understanding of overall activity and key

trends within the WA workers’ compensation scheme.

The report contains four key sections which provides information about:

(i) workers' compensation premium rates

(ii) scheme statistics (includes claim numbers, payments, claim management and return to work)

(iii) claimant characteristics (age, gender, industry, occupation)

(iv) injury and disease attributes (includes level of incapacity, nature and bodily location of injury/disease).

WorkCover WA collects data from approved insurers and self-insurers about all workers’ compensation claims lodged in the

WA scheme. For the purposes of this report, this includes data from all current and former approved insurers, self-insurers

and ICWA.

WorkCover WA applies national classification standards to claims data supplied by insurers to obtain information about injury

and disease attributes, industries where injuries and diseases occurred and occupations of claimants. Table 1 provides a

summary of these classifications.

Workers’ compensation and injury management

WorkCover WAworkcover.wa.gov.auTelephone: 08 9388 55552 Bedbrook Place

Prevention of work-related injuries and diseases

WorkSafe WAcommerce.wa.gov.au/worksafe Telephone: 1300 307 877Level 1, Mason Bird Building

303 Sevenoaks St Cannington WA 6107



Contents

Page

Introduction 3

Overview 7

Report format 8

Section 1: Premium rates

1.0 Summary 9

1.1 Average recommended premium rates 10

1.2 Average actual premium rates 11

Section 2: Scheme statistics

2.0 Summary 12

2.1 Claim numbers 13

2.2 Claim payments 15

2.3 Claim costs 17

2.4 Claim management 19

2.5 Dispute of claims 23

2.6 Settlements 24

Section 3: Claimant characteristics

3.0 Summary 25

3.1 Gender 26

3.2 Age 28

3.3 Industry 30

3.4 Occupation 32

Section 4: Injury/disease attributes

4.0 Summary 3334

4.1 Level of incapacity 34

4.2 Nature of injury 35

4.3 Bodily location 36

4.4 Mechanism 37

4.5 Agency of occurrence 38

Section 5: Ageing workforce

5.0 Summary 39

5.1 Claim numbers and frequency rates 40

5.2 Days lost and claim costs 41

5.2 Industry and occupation 42

5.3 Injruy/disease attributes 43

6.0 Glossary 44

7.0 References 48

8.0 Disclaimer 49



Overview

Summary

Recommended Premium Rates

The recommended premium rates in WA for 2015/16 fell by 4.7%, continuing the downward trend since 2000/01. The average recommended rate for 2015/16 reduced to 1.48% of total wages, down from 1.56% of total wages in 2014/15. The decrease is largely due to continued wages growth in WA and a reduction in claim numbers. In line with the recommended premium rates, the average actual premium rates have been steadily decreasing since 2000/01.

Claim activity

Between 2010/11 and 2013/14, the number of claims (both lost-time and no lost-time claims) fell by 5.7%. The decrease is primarily driven by an 8% reduction in the number of claims with no lost-time. During the same reference period, the lost-time frequency rate decreased from 9.2 to 7.8 claims per million hours worked. On the other hand, adjusted (real) claim payments, comprising direct compensation and service payments, continued to rise since 2010/11. Direct compensation (e.g. income payment) accounted for 66.8% of the total claim payments, while service payments made up the remaining 33.2% in 2013/14.

Claim management

Timeframes for both claim lodgement by employers and decision making on liabilities by insurers have improved. However, it has taken longer for insurers to finalise income claims, increasing from an average of 9.9 months in 2010/11 to 10.5 months in 2013/14.

The 'Return to work indicator' shows that the proportion of lost-time claimants who successfully returned to work has increased. In 2013/14, 78.9% of workers with lost-time claims had returned to work either at full or partial capacity, which is a 4% increase from 2010/11.

Disputes and Settlements

There were 1,945 dispute applications accepted in 2013/14 and the disputation rate has slightly increased from 2.5 to 3.1 disputes per 100 active claims. Consistent with previous years, a higher proportion of claims were finalised by way of Memorandum of Agreements than Section 92(f) deeds. The proportion of claims finalised by Section 92(f) deeds and Memorandum of Agreements have both increased over the past four years.

Claimant Characteristics

Claimant demographics showed that the proportion of lost-time claims between males and females were consistent over the past four years. The size of the gender gap has remained stable reflecting the continued gender disparity in labour force participation. In 2013/14, the number of claims lodged by male workers was twice that of females, and the frequency rate of lost-time claims for male workers was 17.8% higher than female workers. Workers in the 15-19 and 60-64 year age groups had the highest frequency rate of lost-time claims between 2010/11 and 2013/14.

Construction, Health care and social assistance, Manufacturing, Mining, and Education and training accounted for more than 50% of lost-time claims lodged in 2013/14. The industries with the highest frequency rate were Arts and Recreation Services, followed by Agriculture, Manufacturing, Health care and social assistance, and Construction. Workers in blue collar occupations, such as Technicians and trade workers, Labourers, and Machinery operators and drivers, incurred the highest number of lost-time claims in 2013/14.

Injury/disease attributes

In 2013/14, the most common type of work-related injury/disease was sprains and strains (i.e. traumatic joint/ligament and muscle/tendon injuries). The most common causes of work-related injuries in 2013/14 were body stressing (physical stress on muscles, tendons and ligaments) and falls, trips and slips occurring on the lower and upper limbs or trunk of the body.



Timeframe and standards for reporting of data

Ageing workforce

Report format

Section 1: Premium Rates

For average recommended premium rates, data is reported between 1993/94 and 2015/16.

For average actual premium rates, data is reported between 1993/94 and 2013/14.

For both average recommended and actual premium rates, emphasis is placed on the four most recent years.

Western Australia’s workforce is ageing. Between 2005/06 and 2013/14, while the total number of employees increased

by 24%, the number of employees in the older age band (55+) increased by 38%. During the same reference period, the

proportion of older workers in the workforce increased from 12.6% to 15.5%.

The Workers’ Compensation and Injury Management Act 1981 was amended in October 2011 to remove all age based

restrictions on entitlements. The changes to the Act mean injured workers aged 65 years and older are able to access

workers’ compensation on the same terms as all other injured workers.

A feature section is included in this report to assist with understanding the trends in ageing workforce and relevant claim

statistics, and establishing incidence prevention and injury management strategies.

As outlined in the Introduction, this report profiles key activities within the WA workers' compensation scheme in four key

sections: premium rates, scheme statistics, claimant characteristics and injury/disease attributes.


For lost-time claims, data is presented between 2010/11 and 2013/14.

Injury/disease attributes data is classified according to Type of Occurrence Classification System (TOOCS) 3rd edition

published by Australian Safety and Compensation Council.

Section 2: Scheme Statistics

Data is reported between 2010/11 and 2013/14 for both finalised and unfinalised claims.

As claims develop over time, there is a higher proportion of unfinalised claims in the most recent financial year

(2013/14p). The 'p' indicates preliminary data for this year.

Claims data is this section is derived from data supplied by insurers and exempt employers in accordance with the

Q2 specification which can be found on WorkCover WA's website at www.workcover.wa.gov.au


Data is reported between 2010/11 and 2013/14 for lost-time claims only.

Industry classification is based on the Australian and New Zealand Standard Industrial Classification (ANZSIC)

system 2006. The ANZSIC system published by the Australian Bureau of Statistics which groups together businesses

that carry out similar economic activities and is structured into a hierarchy of units reflecting different levels of

description.

Occupational classification is based on the Australian and New Zealand Standard Classification of Occupations

(ANZSCO). These occupational classifications published by the Australian Bureau of Statistics are a skill based

classification which encompasses all occupations in the Australian and New Zealand workforce.




Summary

Overview

Every year, WorkCover WA determines the recommended premium rates, taking into account the latest available data on claims experience provided by insurers, as well as broader economic factors such as movements in wages, employment rate, interest rates and inflation.

In April 2015, WorkCover WA announced a 4.7% decrease in recommended premium rates for 2015/16 in Western Australia, causing the average recommended rate to fall from 1.56% of total wages for 2014/15 to 1.48% of total wages for 2015/16.

The decrease is largely driven by:

wage growth in excess of wage inflation;

a decrease in claim numbers for 2013/14 and in the half year to 31 December 2014;

lower rate of growth of claims with more than 60 days lost;

a decrease in the future rate of inflation.

Between 1999/00 and 2013/14, the average recommended premium rates reduced by 46.1%, from 3.09% of total wages to 1.67% of total wages. Over the same period, the average actual premium rate decreased from 2.52% of total wages to 1.42% of total wages.

1)

Pre

miu

m r

ate

s



2012/13 2013/14 2014/15 2015/16 Trend^

1.1.0 Average recommended premium rates

1.691 1.668 1.556 1.483

7.8 -1.4 -6.7 -4.7

^ Legend:

1.1.1 Average recommended premium rates - 1993/94 to 2015/16


Average recommended premium rates

Premium rates

Average recommended premium

rates (% of payroll)

Annual change in average

recommended premium rate (%)

1.1.2 Annual change in average recommended premium rates - 1994/95 to 2015/16

Increasing Stable Decreasing

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

3.234 2.830 2.759 2.469 2.235 2.545 3.092 2.970 2.630 2.470 2.340 2.250 2.317 2.117 1.849 1.582 1.738 1.497 1.569 1.691 1.668 1.556 1.483

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

% o

f P

ayro

ll

Year ending 30 June

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

-12.5 -2.5 -10.5 -9.5 13.9 21.5 -3.9 -11.4 -6.1 -5.3 -3.8 3.0 -8.6 -12.7 -14.4 9.9 -13.9 4.8 7.8 -1.4 -6.7 -4.7

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

% A

nnual C

hange

Year ending 30 June



2010/11 2011/12 2012/13 2013/14 Trend^

1.2.0 Average actual premium rates

1.41 1.35 1.40 1.42

0.0 -2.1 -4.3 3.7

^ Legend:


Average actual premium rates

Premium rates

Average actual premium rates (%

of payroll)

Annual change in average actual

premium rate (%)

1.2.1 Average actual premium rates - 1993/94 to 2013/14

1.2.2 Annual change in average actual premium rates - 1994/95 to 2013/14


1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Actual 2.98 2.9 2.58 2.49 2.28 2.09 2.52 2.51 2.39 2.30 2.16 1.93 1.88 1.91 1.60 1.44 1.44 1.41 1.35 1.40 1.42

Recommended 3.23 2.83 2.76 2.47 2.24 2.55 3.44 2.97 2.73 2.47 2.34 2.25 2.32 2.12 1.85 1.58 1.74 1.50 1.57 1.69 1.67

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

% o

f P

ayro

ll

Year ending 30 June

Actual Recommended

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Actual -2.7 -11.0 -3.5 -8.4 -8.3 20.6 -0.4 -4.8 -3.9 -6.1 -10.3 -2.8 1.6 -16.2 -10.0 0.0 -2.1 -4.3 3.7 1.4

Recommended 5.0 -12.5 -2.5 -10.5 -9.5 13.9 21.5 -3.9 -11.4 -6.1 -5.3 -3.8 3.0 -8.6 -12.7 -14.4 9.9 -13.9 4.8 7.8

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

% A

nnual C

hange

Year ending 30 June



* See Glossary for definition and explanation

Claims information presented in this section refer to both finalised and unfinalised claims. As claims develop over time,

there is a higher proportion of unfinalised claims in the most recent financial year (2013/14p). The 'p' indicates preliminary

data for this year.

The information presented on claims data refers to the financial year in which the claim was lodged with the insurer. This

may not be in the same financial year in which the injury/disease actually occurred.

Explanatory notes:


Summary

2)

Sc

he

me

Sta

tis

tic

s

Overview

Between 2010/11 and 2013/14, the number of claims decreased by 5.7%. Claims with no lost-time fell by 8%, while the number of lost-time claims decreased by 3%. During the same reference period, the lost-time frequency rate decreased by 16%, from 9.2 to 7.8 claims per million hours worked. The proportion of long duration claims (60 days or more lost-time) has steadily increased. Over the past four years, long duration claims accounted for 27% of all lost-time claims.

Total adjusted (real) claim payments, consisting of direct compensationand service payments, increased by 20.6% in the reference period. This is largely due to an increase in the number of lost-time claims, especially long duration claims.

Direct compensation payments (e.g. income payment and lump sum)consistently accounted for more than 60% of total claim payments. Except for common law payments, other forms of direct compensation payments slowly increased between 2010/11 and 2013/14. All service payments (e.g. medical and hospital, allied health and vocational rehabilitation) remained stable over the four year period.

A decrease in claim lodgement time, combined with increasing percentage of liability decisionsmade within the required timeframe, indicate an overall improvement in early claims management by employers and insurers. However, it has taken longer for insurers to finalise claims, increasing from an average of 9.9 months in 2010/11 to 10.5 months in 2013/14.

Continuance rates (the number of claimants receiving weekly payments at different claim development periods or three, six and twelve months) remained stable. On average, the three, six and twelve months continuance rates were around 66%, 47% and 29% respectively. Of all lost-time claims lodged in 2013/14, 78.9% of workers had returned to work either at full or partial capacity, which is a 4% increase from 2010/11.

There were 1,945 dispute applications accepted in 2013/14. The disputation rate has slightly increased from 2.5 to 3.1 disputes per 100 active claims. Consistent with previous years, a higher proportion of claims were finalised by way of Memorandum of Agreements than Section 92(f) deeds. The proportion of claims finalised by way of Section 92(f) deeds and Memorandum of Agreements rose over the past four years.



2010/11 2011/12 2012/13 2013/14p Trend^

2.1.0 Number of claims* by days lost

0 days 20,223 20,561 19,428 18,605

1 - 4 days 4,584 4,633 4,313 3,685

5 - 19 days 5,362 5,408 5,402 4,705

20 - 59 days 3,230 3,457 3,364 3,210

60 - 119 days 1,573 1,588 1,668 1,861

120 - 179 days 716 775 760 1,066

180+ days 2,022 2,286 2,407 2,430

Total 37,710 38,708 37,342 35,562

^ Legend:


* Data for claim numbers and costs is subject to revision as claims mature.

2.1.1 Number of claims lodged by lost-time

Scheme statistics


Claim numbers


37,710 38,708 37,342

35,562

20,223 20,561 19,428 18,605

17,487 18,147 17,914 16,957

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2010/11 2011/12 2012/13 2013/14p

Num

ber

of cla

ims

Insurer received year

Total

No lost-time

Lost-time claims



2.1.3 Frequency rate* of lost-time claims

2.1.4 Percentage of lost-time* claims by days lost group

2.1.5 Percentage of lost-time claims by days lost group 2010/11 to 2013/14p



Claim numbers

75.3% 74.4% 73.0%68.4%

24.7% 25.6% 27.0%31.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2010/11 2011/12 2012/13 2013/14p

% o

f lo

st tim

e c

laim

s


1-59 days lost

60+ days lost

24.4%

29.6%

18.8%

9.5%

4.7%

13.0%

0% 5% 10% 15% 20% 25% 30% 35%

1-4 days

5-19 days

20-59 days

60-119 days

120-179 days

180+ days

% of lost-time claims

Num

ber

of days lo

st

9.2 8.9

8.5 7.8

7.0 6.6

6.2

5.3

2.3 2.3 2.3 2.5

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2010/11 2011/12 2012/13 2013/14p

Cla

ims p

er

mill

ion h

ours

work

ed


Grand Total

1-59 days lost

60+ days lost



2010/11 2011/12 2012/13 2013/14p Trend^

2.2.0 Claim payments* (unadjusted)

Direct compensation* ($m)

Income payment 241.99 269.63 314.85 353.13

Lump sum - excl common law 109.81 132.45 156.82 193.60

Common law payment 78.34 68.57 58.03 62.26

Service payments* ($m)

Medical and hospital 98.41 113.86 118.06 126.95

Allied health & vocational rehabilitation 60.98 68.33 74.80 81.09

Legal & miscellaneous payment 72.71 80.84 85.25 95.08

Total 662.22 733.68 807.80 912.11

2.2.1 Claim payments* (adjusted)

Direct compensation ($m)

Income payment 279.50 293.62 324.30 357.01

Lump sum - excl common law 126.83 144.24 161.52 195.73

Common law payment 90.48 74.67 59.77 62.94

Service payments ($m)

Medical and hospital 113.66 123.99 121.60 128.34

Allied health & vocational rehabilitation 70.43 74.42 77.04 81.99

Legal & miscellaneous payment 83.98 88.04 87.81 96.13

Total 764.87 798.98 832.04 922.14

^ Legend:

2.2.2 Total claim payments (adjusted) by payment type group



Claim payments

Scheme statistics


764.9799.0

832.0

922.1

496.8 512.5545.6

615.7

268.1 286.4 286.4 306.5

0

100

200

300

400

500

600

700

800

900

1,000

2010/11 2011/12 2012/13 2013/14p

$ m

illio

ns

Transaction year

Total

Direct compensation

Service Payment



2.2.3 Percentage of claim payments by payment type group

2.2.4 Percentage of claim payments by payment type - Direct compensation

2.2.5 Percentage of claim payments by payment type - Service payments


Claim payments

65% 64% 66% 67%

35% 36% 34% 33%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2010/11 2011/12 2012/13 2013/14p

% o

f cla

im p

aym

ents

Transaction year

Direct compensation

Service payment

56% 57%59% 58%

26%28% 30%

32%

18%15%

11% 10%

0%

10%

20%

30%

40%

50%

60%

70%

2010/11 2011/12 2012/13 2013/14p

% o

f cla

im p

aym

ents

Transaction year

Income payment

Lump sum - excl commonlaw

Common law payment

42% 43% 42% 42%

26% 26% 27% 27%

31% 31% 31% 31%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2010/11 2011/12 2012/13 2013/14p

% o

f cla

im p

aym

ents

Transaction year

Medical and hospital

Allied health & vocationalrehabilitation

Legal & miscellaneouspayment



2010/11 2011/12 2012/13 2013/14p Trend^

2.3.0 Claim costs*

Claim costs by days lost ($m)

1 - 4 days 12.7 16.3 27.2 18.3

5 - 19 days 39.3 46.1 44.2 38.0

20 - 59 days 67.7 72.6 75.6 80.5

60 - 119 days 71.1 75.4 83.1 103.3

120 - 179 days 52.2 59.3 63.0 97.7

180+ days 390.6 462.6 490.0 407.6

Total 633.7 732.2 783.1 745.3

Average claim costs by days lost ($)

1 - 4 days 2,771 3,512 6,301 4,968

5 - 19 days 7,333 8,533 8,175 8,069

20 - 59 days 20,966 20,988 22,482 25,070

60 - 119 days 45,196 47,471 49,834 55,507

120 - 179 days 72,908 76,514 82,860 91,606

180+ days 193,183 202,359 203,583 167,743

Total 36,236 40,351 43,714 43,953

^ Legend:

2.3.1 Costs of lost-time claims by days lost


Claim costs

* Data for claim numbers and costs is subject to revision as claims mature.

Scheme statistics


633.7

732.2783.1

745.3

513.9

597.3636.1

608.6

119.7 135.0 147.0 136.7

0

100

200

300

400

500

600

700

800

900

2010/11 2011/12 2012/13 2013/14p

$ m

illio

ns


Total

60+ days lost

1-59 days lost



2.3.2 Percentage of claim costs by days lost

2.3.3 Percentage of claims and costs by days lost 2010/11 to 2013/14p

2.3.4 Percentage of claims and costs by days lost 2010/11 to 2013/14p


Claim costs

72.8%

27.2%

18.6%

81.4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1-59 days 60+ days

% o

f cla

ims / c

osts

Number of days lost

Claims

Costs

24.4%

29.6%

18.8%

9.5%

4.7%

13.0%

2.6%

5.8%

10.2%

11.5%

9.4%

60.5%

0% 10% 20% 30% 40% 50% 60% 70%

1-4 days

5-19 days

20-59 days

60-119 days

120-179 days

180+ days

% of claims / costs

Num

ber

of days lo

st

Claims

Costs

18.9% 18.4% 18.8% 18.3%

81.1% 81.6% 81.2% 81.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2010/11 2011/12 2012/13 2013/14p

% o

f cla

im c

osts


1-59 days lost

60+ days lost



2010/11 2011/12 2012/13 2013/14p Trend^

2.4.0 Claim management

Average time between employer receiving claim and lodging with insurer (days)

All income claims 5.5 5.0 5.0 4.8

Percentage (%) of liability decisions* made within the required time


Average time between lodgement of claim with insurer and initial finalisation of claim (months)


^ Legend:

2.4.1 Average time between employer receiving claim and lodging with insurer (days) - income claims

* See Glossary for definition and further explanation


Claim management

Scheme statistics


5.5

5.0 5.0 4.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

2010/11 2011/12 2012/13 2013/14p

Num

ber

of days




2.4.2 Percentage of liability decisions* made within the required time - income claims

2.4.3 Average time between lodgement of claim with insurer and initial finalisation of claim (months) - income claims



Claim management

93.9 94.3 95.6 95.4

0

20

40

60

80

100

2010/11 2011/12 2012/13 2013/14p

% o

f in

com

e c

laim

s


9.9 10.0 10.3 10.5

5.0

7.0

9.0

11.0

13.0

15.0

2010/11 2011/12 2012/13 2013/14p

Num

ber

of m

onth

s

Finalisation year



2010/11 2011/12 2012/13 2013/14p Trend^

2.4.4 Continuance rates*

Number of claims receiving weekly payments

one month after claim lodgement 6,141 6,621 6,742 6,616


three months after claim lodgement 4,080 4,307 4,444 4,500

Number of claims receiving weekly payments six

months after claim lodgement 2,924 3,156 3,155 3,164


twelve months after claim lodgement 1,802 2,006 2,111 n/a^

Three-month continuance rate* 66.4% 65.1% 65.9% 68.0%

Six-month continuance rate* 47.6% 47.7% 46.8% 47.8%

Twelve-month continuance rate* 29.3% 30.3% 31.3% n/a^

^ Legend:

2.4.5 Continuance rates 2009/10 - 2013/14p


^ The twelve-month continuance rate for 2013/14 was not available (less than 12 months from data snapshot).

Scheme statistics


Claim management


66.4% 65.1% 65.9%68.0%

47.6%47.7% 46.8% 47.8%

29.3% 30.3%31.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2010/11 2011/12 2012/13 2013/14p

Contin

uance r

ate

%


Three-Month Continuance Rate

Six-Month Continuance Rate

Twelve-Month Continuance Rate



2010/11 2011/12 2012/13 2013/14p

2.4.6a Work Status* (as at 31 January 2015)

All claims (no lost-time and lost-time)

Maintained at work 51.2% 50.4% 49.0% 49.1%

Returned to work (full or partial hours) 34.7% 35.4% 36.3% 37.6%

Not working 12.8% 12.8% 13.0% 11.8%

Return to work status unknown 1.3% 1.4% 1.7% 1.5%

2.4.6b Return to Work Status* (as at 31 January 2015)

Lost-time claims

Returned to work (full or partial hours) 74.8% 75.4% 75.6% 78.9%

Not working 23.4% 23.0% 22.6% 19.7%

Return to work status unknown 1.8% 1.6% 1.8% 1.4%

2.4.8 Return to Work Status - lost-time claims lodged 2013/14p



Claim management

Scheme statisticsClaim lodgement year

2.4.7 Work Status - all claims lodged 2013/14p

49.0%

32.9%

3.4%

11.3%

1.8%

1.7%

0% 10% 20% 30% 40% 50% 60%

Maintained at work

Return to work - full hours

Return to work - partial hours

Not working - injury related

Not working - other reason

Return to work status unknown

% of claims

68.6%

7.1%

19.7%

2.9%

1.8%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Return to work - full hours

Return to work - partial hours

Not working - injury related

Not working - other reason

Return to work status unknown

% of claims



2010/11 2011/12* 2012/13 2013/14p Trend^

2.5.0 Disputes

Number of disputes lodged 1,864 n/a 1,612 1,945 n/a*

Disputation rate 3.1% n/a 2.5% 3.1% n/a*

^ Legend:

* Data for 2011/12 is excluded due to the legislative change for conciliation and arbitration functions on 1 December 2011.

Given the differences between the old and new systems, the dispute data across the four year period is not comparable. For this

reason, the trend of dispute activities is not analysed.

2.5.1 Number of disputes lodged

2.5.2 Disputation rate


Disputes

Scheme statistics


1,864

1,612

1,945

0

500

1,000

1,500

2,000

2,500

2010/11 2011/12* 2012/13 2013/14p

Num

ber

of dis

pute

s

Dispute application year

3.1%

2.5%

3.1%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

2010/11 2011/12* 2012/13 2013/14p

Dis

puta

tio

n r

ate

Financial year



2010/11 2011/12 2012/13 2013/14p Trend^

2.6.0 Settlements

Settlements as a proportion of finalised claims

Memorandum of Agreements 9.4% 9.6% 9.8% 10.0%

Section 92(f) deeds 3.1% 3.6% 4.2% 4.8%

Total 12.5% 13.2% 14.0% 14.8%

Settlement payments as a proportion of finalised claim payments

Memorandum of Agreements 9.6% 11.1% 11.5% 13.0%

Section 92(f) deeds 13.6% 14.5% 12.7% 12.9%

Total 23.2% 25.5% 24.2% 25.9%

^ Legend:

2.6.1 Settlements as a proportion of finalised claims

2.6.2 Settlement payments as a proportion of finalised claim payments


Settlements

Scheme statistics


9.4% 9.6% 9.8% 10.0%

3.1%3.6%

4.2%4.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2010/11 2011/12 2012/13 2013/14p

Sett

lem

ent ra

te

Finalisation year

Memorandum ofAgreements

Section 92(f) deeds

9.6%11.1% 11.5%

13.0%

13.6%14.5%

12.7% 12.9%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2010/11 2011/12 2012/13 2013/14p

Pro

port

ion o

f fin

alis

ed c

laim

paym

ents

Finalisation year

Memorandum ofAgreements

Section 92(f) deeds



Information presented in this section refers to both finalised and unfinalised claims. Given that claims develop over time, there

is a higher proportion of unfinalised claims in the most recent financial year (2013/14p). The 'p' indicates preliminary data for

this year.

Industry

Industry classifications are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) published

by the Australian Bureau of Statistics (ABS). From 1 July 2009, a new ANZSIC version (2006) was used to classify industries.

Occupation

Occupational classifications are based on the Australian and New Zealand Standard Classification of Occupations (ANZSCO)

published by the ABS and used from 1 July 2009 to code occupations.

Explanatory notes:

Claims


Summary

3)

Cla

ima

nt

ch

ara

cte

ris

tic

s

Overview

Similar to previous years, males have higher number of claims and claim frequency rates than females. In 2013/14, the proportion of claims for males and females were 67% and 33% respectively. Over the pastfour year, the frequency rate for male workers decreased by 17% and for female workers, the frequency rate decreased by 12.6%.

Between 2010/11 to 2013/14, the age group with the highest number of claims were the 45-54 year age group, followed by the 35-44 year age group. However, the highest frequency rate of lost-time claims were attributable to 15-19 and 60-64 year age groups for the same reference period.

The risks associated with different industries are evident in the number of claims and frequency rates. In 2013/14, the highest number and proportion of lost-time claims were associated with manual labour and high risk industries such as Construction (15.5%), Health care and social assistance (14.1%), Manufacturing (12.1%) and Mining (8.7%). Industries with the highest frequency rates in 2013/14 were Arts and recreation services, Agriculture, forestry and fishing and Manufacturing.

Technicians and trades workers, Labourers and Machinery operator and drivers accounted for 64.4%

of lost-time claims in 2013/14. In contrast, white collar workers occupied the lowest proportion of claims, for example Sales workers (5.1%), Clerical and administrative workers (4.3%) and Managers (2.6%).



2010/11 2011/12 2012/13 2013/14p Trend^

3.1.0 Number of lost-time claims by claimant gender

Male

1 - 4 days 3,043 3,156 2,834 2,389

5 - 19 days 3,747 3,792 3,689 3,219

20 - 59 days 2,284 2,447 2,388 2,199

60 - 119 days 1,088 1,077 1,157 1,286

120 - 179 days 444 488 496 691

180+ days 1,213 1,390 1,496 1,557

Total 11,819 12,350 12,060 11,341

Female

1 - 4 days 1,541 1,477 1,479 1,295

5 - 19 days 1,615 1,616 1,713 1,486

20 - 59 days 946 1,010 976 1,010

60 - 119 days 485 511 511 575

120 - 179 days 272 287 264 375

180+ days 809 896 911 873

Total 5,668 5,797 5,854 5,614

^ Legend:

3.1.1 Number of lost-time claims by claimant gender


Gender

Claimant characteristics


11,819 12,350 12,060

11,341

5,668 5,797 5,854 5,614

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2010/11 2011/12 2012/13 2013/14p

Num

ber

of lo

st-

tim

e c

laim

s


Male

Female



3.1.2 Frequency of lost-time claims by claimant gender

3.1.3 Proportion of lost-time claims by gender 2010/11 to 2013/14p


Gender

10.0 9.8 9.1

8.3

8.0 7.6 7.5

7.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2010/11 2011/12 2012/13 2013/14p

Fre

quency r

ate


Male

Female

69%65%

31%35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1-59 days lost 60+ days lost

% o

f lo

st-

tim

e c

laim

s

Days lost

Male

Female



2010/11 2011/12 2012/13 2013/14p Trend^

3.2.0 Number of lost-time claims by age group

15 - 19 years 1,004 1,034 868 743

20 - 24 years 1,935 1,933 1,959 1,653

25 - 34 years 3,536 3,782 3,853 3,662

35 - 44 years 3,914 4,095 3,911 3,619

45 - 54 years 4,313 4,335 4,223 4,222

55 - 59 years 1,506 1,630 1,604 1,684

60 - 64 years 982 1,024 1,112 1,020

65+ years 288 309 375 351

3.2.1 Frequency rate by age group

15 - 19 years 10.9 11.4 9.6 9.3

20 - 24 years 9.2 8.6 8.6 7.3

25 - 34 years 7.6 7.5 7.0 6.4

35 - 44 years 9.0 8.9 8.1 7.3

45 - 54 years 10.5 9.6 9.3 9.0

55 - 59 years 10.0 9.6 9.5 9.6

60 - 64 years 10.5 11.5 11.1 9.9

65+ years 9.4 8.2 10.1 8.0

^ Legend:

3.2.2 Total number of lost-time claims by age group 2010/11 to 2013/14p


Age

Claimant characteristics


3,649

7,480

14,833 15,539

17,093

6,424

4,138

1,323

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65+

Num

ber

of lo

st-

tim

e c

laim

s

Age group



3.2.3 Frequency rate of lost-time claims by age group 2010/11 to 2013/14p

3.2.4 Percentage of lost-time claims by age group 2010/11 to 2013/14p


Age

89%84%

77%

71%67% 66% 66% 66%

11%16%

23%

29%33% 34% 34% 34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65+

% o

f lo

st-

tim

e c

laim

s

Age group

1-59 days lost 60+ days lost

10.3

8.4

7.1

8.3

9.6 9.7

10.7

8.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65+

Fre

quency r

ate

Age group



Claimant characteristics 2010/11 2011/12 2012/13 2013/14p

3.3.0 Number of lost-time claims by industry

Accommodation and food services 745 895 852 789

Administrative and support services 396 429 324 358

Agriculture, forestry and fishing 618 627 581 531

Arts and recreation services 422 444 405 413

Construction 2,572 2,725 2,733 2,624

Education and training 1,323 1,258 1,289 1,246

Electricity, gas, water and waste services 187 189 210 197

Financial and insurance services 57 59 49 52

Health care and social assistance 2,475 2,455 2,509 2,393

Information media and telecommunications 62 43 50 52

Manufacturing 2,611 2,641 2,463 2,048

Mining 1,152 1,395 1,534 1,474

Other services 481 489 452 520

Professional, scientific and technical services 271 349 282 311

Public administration and safety 692 716 748 771

Rental, hiring and real estate services 216 176 213 180

Retail trade 1,466 1,288 1,333 1,186

Transport, postal and warehousing 1,132 1,235 1,168 1,126

Wholesale trade 609 734 712 668

Grand Total 17,487 18,147 17,907 16,939

3.3.1 Percentage of lost-time claims by industry 2013/14p


Industry

0.3%

0.3%

1.1%

1.2%

1.8%

2.1%

2.4%

3.1%

3.1%

3.9%

4.6%

4.7%

6.6%

7.0%

7.4%

8.7%

12.1%

14.1%

15.5%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Information media and telecommunications

Financial and insurance services

Rental, hiring and real estate services

Electricity, gas, water and waste services

Professional, scientific and technical services

Administrative and support services

Arts and recreation services

Other services

Agriculture, forestry and fishing

Wholesale trade

Public administration and safety

Accommodation and food services

Transport, postal and warehousing

Retail trade

Education and training

Mining

Manufacturing

Health care and social assistance

Construction




3.3.2 Frequency rate of lost-time claims by industry 2013/14p


Industry

15.3

13.5

12.5

12.4

10.9

10.3

9.4

7.8

7.7

7.0

6.6

6.5

6.3

5.9

5.3

3.8

3.7

2.9

1.9

0 2 4 6 8 10 12 14 16 18


Agriculture, forestry and fishing

Manufacturing


Construction


Wholesale trade

All industry average


Accommodation and food services

Retail trade

Public administration and safety

Other services

Mining

Electricity, gas, water and waste services

Administrative and support services

Rental, hiring and real estate services

Information media and telecommunications

Professional, scientific and technical services

Frequency rate



Claimant characteristics 2010/11 2011/12 2012/13 2013/14p

3.4.0 Number of lost-time claims by occupation

Technicians and trades workers 4,621 4,874 4,866 4,413

Labourers 4,150 4,162 3,992 3,561

Machinery operators and drivers 2,749 3,201 3,102 2,945

Community and personal service workers 2,599 2,542 2,610 2,610

Professionals 1,354 1,374 1,398 1,378

Sales workers 950 806 820 864

Clerical and administrative workers 690 733 682 727

Managers 374 455 437 441

Total 17,487 18,147 17,907 16,939

3.4.1 Percentage of lost-time claims by occupation 2013/14p


Occupation

2.6%

4.3%

5.1%

8.1%

15.4%

17.4%

21.0%

26.1%

0% 5% 10% 15% 20% 25% 30%

Managers

Clerical and administrative workers

Sales workers

Professionals

Community and personal service workers

Machinery operators and drivers

Labourers

Technicians and trades workers




• Agency of injury/disease

Information presented in this section refers to both finalised and unfinalised claims. Given that claims develop over time,

there is a higher proportion of unfinalised claims in the most recent financial year (2013/14p). The 'p' indicates preliminary

data for this year.

• Mechanism of injury/disease


Summary

• Nature of injury/disease

• Bodily location of injury/disease

Injury/disease classifications

Claims

Explanatory notes:

• For the indicator relating to work-related fatalities, both no lost-time and lost-time injury and disease claims are reported.

• For all other indicators, only lost-time injury and lost-time disease claims are reported.

Safe Work Australia's Type of Occurrence Classification System, 3rd edition revision 1 (TOOCS v3) is used to describe

attributes of work-related injuries and diseases sustained by workers who lodge workers' compensation claims. Since

1 July 2009, TOOCS v3 has been used to classify the following:

Overview

Between 2010/11 and 2013/14, around 80% of work-related injuries and diseases resulted in temporary incapacity for claimants. Injuries resulting in permanent incapacity (total or partial) steadily decreased during the same period.

Over the past four years, 91.8% of lost-time claims resulted from work-related injuries, with the remaining 8.2% arose out of work-related diseases. Traumatic joint/ligament and muscle/tendon injuries are the most common causes for injuries/diseases, accounting for 56.3% of all lost-time claims in 2013/14.

In 2013/14, the predominant causes of work-related injuries/diseases are due to:

body stressing (39.0%)

falls, trips and slips (23.8%)

being hit by moving objects (19.9%).

Injuries predominantly occurred to the upper limbs (35.5%), followed by lower limbs (24.2%) and trunk of the body (21.4%). 4

) In

jury

/dis

ease a

ttri

bu

tes



2010/11 2011/12 2012/13 2013/14p Trend^

4.1.0 Number of lost-time claims by level of incapacity*

Temporary Incapacity 13,441 14,062 14,171 13,826

Permanent incapacity - Partial 3,778 3,861 3,594 2,830

Permanent incapacity - Total 252 196 87 34

No incapacity at any time 16 27 60 262

Total 17,487 18,146 17,912 16,952

^ Legend:

* The incapacity data excludes work-related fatalities. Given insurers usually report the incapacity status when a claim is

finalised, the data is presented to 2011/12 in this report to allow an additional year lag for the claims to mature.

4.1.1 Percentage of lost-time claims by level of incapacity* 2010/11 to 2013/14p

2010/11 2011/12 2012/13 2013/14p Trend^

4.1.2 Number of work-related fatalities

Work-related fatalities 32 18 31 28

4.1.3 Number of work-related fatalities 2010/11 to 2013/14p

Injury attributes


Level of incapacity

Injury attributes


78.7%

19.9%

0.8%

0.5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Temporary Incapacity

Permanent incapacity - Partial

Permanent incapacity - Total

No incapacity at any time


32

18

3128

0

10

20

30

40

50

2010/11 2011/12 2012/13 2013/14p

Num

ber

of w

ork

-rela

ted f

ata

litie

s




2010/11 2011/12 2012/13 2013/14p

4.2.0 Number of lost-time claims by nature of injury/disease

Lost time injury 16,012 16,722 16,449 15,541

Traumatic joint/ligament and muscle/tendon injury 9,505 9,921 9,905 9,541

Wounds, lacerations, amputations and internal organ damage 3,921 3,931 3,637 3,482

Fractures 1,564 1,772 1,897 1,658

Other injuries 548 607 472 421

Burn 357 399 411 314

Intracranial injuries 117 92 127 125

Lost time disease 1,475 1,425 1,465 1,416

Musculoskeletal and connective tissue diseases 527 530 571 486

Mental diseases 490 412 443 494

Digestive system diseases 225 233 208 181

Nervous system and sense organ diseases 112 121 120 118

Skin and subcutaneous tissue diseases 59 67 64 55

Infectious and parasitic diseases 20 24 24 38

Other diseases 21 18 17 26

Respiratory system diseases 11 13 9 12

Circulatory system diseases 10 7 9 6

4.2.1 Percentage of lost-time claims by nature of injury/disease 2013/14p

Injury attributes


Nature

56.3%

20.5%

9.8%

2.9%

2.9%

2.5%

1.9%

1.1%

0.7%

0.7%

0.3%

0.2%

0.2%

0.1%

0.0%

0% 10% 20% 30% 40% 50% 60%

Traumatic joint/ligament and muscle/tendon injury

Wounds, lacerations, amputations and internal organ damage

Fractures

Mental diseases

Musculoskeletal and connective tissue diseases

Other injuries

Burn

Digestive system diseases

Intracranial injuries

Nervous system and sense organ diseases

Skin and subcutaneous tissue diseases

Infectious and parasitic diseases

Other diseases

Respiratory system diseases

Circulatory system diseases




2010/11 2011/12 2012/13 2013/14p

4.3.0 Number of lost-time claims by bodily location of injury/disease

Upper limbs 6,208 6,551 6,447 6,014

Lower limbs 3,852 4,103 4,192 4,108

Trunk 4,116 4,212 4,014 3,633

Multiple/unspecified locations 1,386 1,435 1,451 1,442

Head 1,049 1,028 982 922

Non physical locations 490 412 443 494

Neck 296 294 286 262

Systemic locations 90 112 99 82

Total 17,487 18,147 17,914 16,957

4.3.1 Percentage of lost-time claims by bodily location of injury/disease 2013/14p


Bodily location

Injury attributes

35.5%

24.2%

21.4%

8.5%

5.4%

2.9%

1.5%

0.5%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Upper limbs

Lower limbs

Trunk

Multiple/unspecified locations

Head

Non physical locations

Neck

Systemic locations




2010/11 2011/12 2012/13 2013/14p

4.4.0 Number of lost-time claims by mechansim of injury/disease

Body stressing 6,800 7,065 6,972 6,618

Falls trips and slips of a person 3,952 4,195 4,179 4,028

Being hit by moving objects 3,720 3,821 3,650 3,371

Hitting objects with a part of the body 1,390 1,368 1,425 1,293

Other and unspecified mechanisms of incident 456 509 499 535

Mental stress 482 411 443 489

Heat electricity and other environmental factors 302 384 375 277

Chemicals and other substances 287 306 275 248

Biological factors 67 71 71 77

Sound and pressure 31 17 25 21

Total 17,487 18,147 17,914 16,957

4.4.1 Percentage of lost-time claims by mechanism of injury/disease 2013/14p


Mechanism

Injury attributes

39.0%

23.8%

19.9%

7.6%

3.2%

2.9%

1.6%

1.5%

0.5%

0.1%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Body stressing

Falls trips and slips of a person

Being hit by moving objects

Hitting objects with a part of the body

Other and unspecified mechanisms of incident

Mental stress

Heat electricity and other environmental factors

Chemicals and other substances

Biological factors

Sound and pressure




2010/11 2011/12 2012/13 2013/14p

4.5.0 Number of lost-time claims by agency of injury/disease

Non powered handtools appliances and equipment 4,023 4,227 4,115 3,896

Environmental agencies 3,815 4,036 4,100 3,953

Materials and substances 3,126 3,156 2,962 2,807

Mobile plant and transport 1,548 1,760 1,751 1,594

Animal human and biological agencies 1,650 1,618 1,655 1,611

Other and unspecified agencies 1,286 1,264 1,327 1,333

Powered equipment tools and appliances 955 992 991 903

Machinery and mainly fixed plant 848 865 805 672

Chemicals and chemical products 236 229 208 188

Total 17,487 18,147 17,914 16,957

4.5.1 Percentage of lost-time claims by agency of injury/disease 2013/14p


Agency

Injury attributes

23.3%

23.0%

16.6%

9.5%

9.4%

7.9%

5.3%

4.0%

1.1%

0% 5% 10% 15% 20% 25%

Environmental agencies

Non powered handtools appliances and equipment

Materials and substances

Animal human and biological agencies

Mobile plant and transport

Other and unspecified agencies

Powered equipment tools and appliances

Machinery and mainly fixed plant

Chemicals and chemical products




Overview

Number of WA employees in the older age group

Workers' compensation

• understanding trends in relation to the ageing workforce

• forming incidence prevention and injury management strategies.

Profile of claims by age groups - 2013/14p

This section provides information regarding the extent and characteristics of lost-time claims

lodged by older workers. This information assists:

Western Australia’s workforce is ageing. Between 2005/06 and 2013/14, while the total number of

employees increased by 24%, the number of employees in the older age band (55+) increased by

38%. During the same reference period, the proportion of older workers in the workforce

increased from 12.6% to 15.5%.

The Workers’ Compensation and Injury Management Act 1981 was amended in October 2011 to

remove all age based restrictions on entitlements. The changes to the Act mean injured workers

aged 65 years and older are able to access workers’ compensation on the same terms as all

other injured workers.

Between 2010/11 and 2013/14, the total number of lost-time claims decreased by 3%. However,

the number of lost-time claims in the older age group increased by 9%. Although the incidence

and frequency rates of the older workers have improved over the past four years, statistics show

that workers in the older age group tend to have longer claim durations.


Summary

5)

Ag

ein

g w

ork

forc

e

-

50,000

100,000

150,000

200,000

250,000

Older (55+)

0%

20%

40%

60%

80%

100%

Younger (15-34) Mid (35-54) Older (55+)

Proportion of WA employees by age group


Number of claims 6,058 7,841 3,055

Average claim cost $31,257 $51,056 $50,930

Average days lost 55 88 95

Frequency rate 6.9 8.1 9.5



2010/11 2011/12 2012/13 2013/14p Total

Number of lost time claims by age group

Younger (15-34) 6,475 6,749 6,680 6,058 25,962

Mid (35-54) 8,227 8,430 8,134 7,841 32,632

Older (55+) 2,776 2,963 3,091 3,055 11,885

All lost-time claims 17,478 18,142 17,905 16,954 70,479

Proportion of lost-time claims by age group - 2010/11 - 2013/14p


Claim numbers and frequency rates

Frequency rate of lost-time claims by age group - 2010/11 - 2013/14p

Although the number of claims lodged by workers aged 55 or more are relatively low, this "older" age group consistently

had a higher frequency rate than the overall lost-time claims. Between 2010/11 and 2013/14, the overall frequency rate

decreased by 18%. By contrast, the frequency rate for the older age group decreased by only 6%. Further analysis shows

that within the older age group, claimants aged between 60 and 64 had the highest frequency rate over the past four

years.

10.1 10.0 10.1 9.5

9.2 8.9 8.57.8

2010/11 2011/12 2012/13 2013/14p

Fre

quency r

ate


Older (55+) All

10.0 9.6 9.5 9.610.5

11.5 11.19.99.4

8.2

10.1

8.0

2010/11 2011/12 2012/13 2013/14p

Fre

quency r

ate


55-59 60-64 65+

Younger (15-34)36%

Mid (35-54)46% 55-59

10%

60-646%

65+2%

Older (55+)18%

Between 2010/11 and 2013/14, the total

number of lost-time claims steadily decreased,

whereas the number of claims in the older age

group increased by 9%. During the same

reference period, around 18% of all workers'

compensation lost-time claims were associated

with workers in the older age group. On

average, only 2% of lost-time claims were

associated with workers over 65 years of age.



2010/11 2011/12 2012/13 2013/14p Total

Average days lost by age group

Younger (15-34) 47 51 55 55 52

Mid (35-54) 85 90 91 88 89

Older (55+) 85 93 93 95 92

All lost-time claims 71 76 78 78 76

Average days lost by age group - 2010/11 to 2013/14p

Average days lost by all age bands - 2010/11 to 2013/14p

Average claim cost by age group - 2010/11 to 2013/14p

Average claim cost by all age bands - 2010/11 to 2013/14p


Days lost and claim costs

While the older age group tends to have a

longer claim duration, this age group has

an average claim cost slightly lower than

the middle age group. Between 2010/11

and 2013/14, the average claim cost for the

middle age group was $49,246 compared

with $49,062 for the older age group.

During the same reference period, the 45-

54 and 55-59 age groups had the highest

average claim cost of just over $50,000.

Overall, the average claim cost shows a

similar trend to the average claim duration

across all age groups.

Between 2010/11 and 2013/14, the

younger age group consistently had the

lowest average days lost. During the

same reference period, the older age

group had a slightly higher average days

lost than the middle age group, with 92

days and 89 days respectively.

In general, as workers age, the duration

of claims tend to be longer. The average

claim duration increased with worker’s

age until the 55-59 age group, then

reduced in the 60-64 and 65+ age

groups.

47 51 55 55

85 90 91 888593 93 95

2010/11 2011/12 2012/13 2013/14p


Younger (15-34)

Mid (35-54)

Older (55+)

31 43

61

85 92 95 90 80

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65+

Age bands

2010/11 2011/12 2012/13 2013/14p

Younger (15-34) $22,704 $25,347 $29,440 $31,257

Mid (35-54) $44,608 $48,821 $52,634 $51,056

Older (55+) $43,097 $50,492 $51,202 $50,930

$0

$15,000

$30,000

$45,000

$60,000

15-19 20-24 25-34 35-44 45-54 55-59 60-64 65+

Age bands



Frequency rate by industry in the older age group - 2013/14p

Proportion of lost-time claims by industry in the older age group - 2013/14p

Proportion of lost-time claims by occupation - 2013/14p


Industry and occupation

Overall, workers in the older age group

tend to have a higher frequency rate. In

2013/14, the industres with the highest

frequency rate in the older age group

were Arts and recreation services

(23.0), followed by Health care and

social assistance (18.0) and

Construction (12.7).

23.0

18.0

12.7

11.9

11.1



Construction

Manufacturing


Between 2010/11 and 2013/14, the

number of lost-time claims in the older

age group increased by 9%. In

2013/14, there were 3,055 lost-time

claims lodged by the older age group.


accounted for 23% of the lost-time

claim, followed by Education and

training (13%) and Construction

23%

13%

10%

8%

8%



Construction

Manufacturing


0%

5%

10%

15%

20%

25%

30%

35%

40%

Technicians andtrades workers

Labourers Machineryoperators and

drivers

Community andpersonal service

workers

Professionals Sales workers Clerical andadministrative

workers

Managers


In the younger age group, Technicians and trades workers, Labourers and Machinery operators and drivers accounted

for 75% of lost-time claims in 2013/14. In contrast, these occupations only occupied 54% of lost-time claims in the older

age group. Statistics show that claimants in the older age group had a higher proportion of white collar workers

compared to the younger age group.



Frequency rate by nature of injury - 2013/14p


Sprains and strains 3.2 4.8 5.7

Wounds, contusions, bruising 1.9 1.4 1.6

Fractures 0.8 0.7 1.0

Diseases (includes cancer and other diseases) 0.3 0.5 0.4

Mental conditions 0.1 0.3 0.3

Other injuries 0.6 0.4 0.4

Proportion of lost-time claims by nature of injury in the older age group

Frequency rate by age group - Mechanism of injury 2013/14p


Body stressing 2.3 3.5 3.8

Falls, trips and slips of a person 1.4 1.9 3.0

Being hit by moving objects 1.8 1.4 1.3

Hitting objects with a part of the body 0.7 0.5 0.5

Mental stress 0.1 0.3 0.3

Other and unspecified mechanisms of incident 0.5 0.5 0.6


Injury/disease attributes

Sprains and strains61%Wounds,

contusions, bruising17%

Fractures10%

Diseases (includes cancer and other

diseases)5%

Mental conditions4% Other injuries

4%

The 2013/14 claim data showed that as

workers age, the tendency (frequency rate) of

having a sprains and strains injury increased.

The proportion of lost-time claims by nature

of injury/disease in the older age group was

similar to the overall scheme figures. In

2013/14, 61% of lost-time claims lodged by

the older age group were associated with

sprains and strains, followed by wounds,

contusion, bruising (17%) and fractures

(10%).

Body stressing40%

Falls, trips and slips of a person

32%

Being hit by moving objects

14%

Hitting objects with a part of the

body5%

Mental stress4%

Other and unspecified mechanisms of incident

6%

Similar to other age groups, body stressing

had the highest frequency rate for the older

workers. However, the 2013/14 data showed

that this group of workers had a much higher

tendency of lost-time injury caused by falls,

trips and slips. On the other hand, the older

workers had a lower frequency rate in relation

to injury caused by being hit by moving

objects.

In 2013/14, 40% of the older claimants had a

work-related injury caused by body stressing,

followed by falls, trips and slips (32%) and

Proportion of lost-time claims by mechanism of injury in the older age



TERM

Accident year

Act

Age

Agency of

occurrence

Average cost

Bodily location

Body stressing

Claimant

Claim costs

Claims data

Claim management

Claim payments

Information pertaining to workers’ compensation claims is reported to WorkCover WA by approved

insurers and self-insurers. Information is collated based on the financial year in which a claim was

lodged with the insurer. For the purposes of this report, certain types of claims were excluded:

• lost time journey claims between home and work

• asbestos-related diseases, including mesothelioma and pneumoconiosis

• duplicated or disallowed (by an insurer).

It should be noted that claim numbers are subject to revision as claims experience matures; this is

especially true for more recent years.

Section 6: Glossary

DEFINITION / EXPLANATION OF TERM

Accident year refers to the financial year in which the work-related injury/disease occurred or when

symptoms of the work-related illness or disease were first recognised, irrespective of when the claim

was reported, paid or finalised.

Refers to the Workers' Compensation and Injury Management Act 1981 .

Based on chronological age (in years) at the date of injury/disease.

The agency of occurrence refers to the object, substance or circumstance that was principally involved

in or most closely associated with the point at which things started to go wrong and which ultimately led

to the most serious injury/disease. A comprehensive list of inclusions and exclusions for this

classification is available from Safe Work Australia Type of Occurrence Classification System 3rd

edition, version 1 (available online at safeworkaustralia.gov.au).

An estimate of costs for unfinalised claims, plus the total cost of finalised claims, divided by the number

of claims. Average cost is attributed to the year in which a claim was lodged and is associated with

claims data.

Identifies the part of the body affected by the most serious injury/disease. A comprehensive list of

inclusions and exclusions for this classification is available from Safe Work Australia Type of

Occurrence Classification System 3rd edition, version 1 (available online at safeworkaustralia.gov.au).

Injuries or disorders that result from stress placed on muscles, tendons, ligaments and bones. For

further information refer to Safe Work Australia Type of Occurrence Classification System 3rd edition,

version 1 (available online at safeworkaustralia.gov.au).

Refers to a person who lodges a claim in the WA workers' compensation scheme.

An estimate of costs for unfinalised claims, and total cost of finalised claims attributed to the year in

which a claim was lodged. It should be noted that claim costs are subject to revision as claims

experience matures; this is especially true for more recent years. Claim costs are not adjusted for

inflation.

The Workers' Compensation and Injury Management Act 1981 requires:

an employer to lodge a claim with the insurer within five working days of receiving a

claim form and first medical certificate (was three working days up to 30 September 2011).

an approved insurer to give a worker and the respective employer notice of a decision on

a lodged workers' compensation claim (e.g. accepted, disputed or pending) within

14 days.

a self-insurer to give a worker and the respective employer notice of a decision on a

lodged workers' compensation claim within 17 days.

Categories are based on WorkCover WA’s Guidelines for Completing Form WC 101. Claim payments

are in contrast with claims data as they do not reflect liabilities incurred but not yet paid. Claim payment

information is collated based on the financial year during which payment was made, regardless of when

the claim was lodged with the insurer (continued below).



TERM

Service payments:

1. medical and hospital payments:

- hospital expenses (hospital accommodation and hospital treatment)

2. allied health and vocational rehabilitation payments:

3. legal and miscellaneous payments

Common law

payment

Continuance rate

Days lost

Dispute

- vocational rehabilitation payments (comprises payments made under clause 17 (1a)

of Schedule 1 of the Act in respect of counselling, occupational training, work

assessment, aids and appliances)

Section 6: Glossary


Claim payments

continued

In this report, claim payments are reported both in adjusted and unadjusted formats. In relation to the

former, payments are adjusted for inflation to allow for meaningful comparisons over time. Payment

type groups are outlined below:

Direct compensation:

1. income payments (payments made for absences from work).

2. lump sum payments (including common law):

- redemption payments made under Schedule 1

- specific injury payments made under Schedule 2

- fatal payments including funeral expenses

- common law and other Acts payments.

- medical practitioner and specialist payments (consultation and treatment expenses

rendered by general practitioners and medical specialists)

- other treatment and appliance payments (comprises payments made under clauses

17(1)(3), (4), (5) and (6) of Schedule 1 of the Act, other than medical and hospital

expenses)

- legal expenses (comprises the cost of legal advice and representation incurred by

approved insurers or exempt employers, witness fees and the costs of these

services incurred by the worker where the approved insurer or exempt employer

is ordered to meet the costs)

- miscellaneous (includes general items that do not fit in any other category, for

example travelling, meals and lodgings, under clause 19 of Schedule 1).

The total economic loss component of a common law settlement or judgement after deduction of

amounts for contingencies and contributory negligence. Includes amounts for pain and suffering,

permanent impairment, loss of superannuation, legal expenses and future medical costs.

Monitors claims over time from the date a claim was lodged with an insurer. The continuance rate

shows the number of claims involving weekly income replacement payments at three months, six

months and twelve months as a proportion of claims involving weekly income replacement payments at

one month. This indicator provides insight into claim duration and scheme exits.

The number of hours off work divided by the number of hours usually worked each day. If the claim is

finalised, actual hours off work are used, otherwise if the claim is not finalised, estimated hours off work

are used.

A dispute over a workers' compensation claim by parties involved (e.g. insurer, employer, worker). A

dispute can occur at any stage of a claim in relation to a number of matters.

Please note that dispute data reported between 2007/08 and 2010/11 relates to WorkCover WA's

Dispute Resolution Directorate (DRD). The DRD ceased operation on 30 November 2011 and

WorkCover WA's Conciliation and Arbitration Services commenced on 1 December 2011.



TERM

Disputation rate

Disease

Extent of incapacity

Frequency rate

Incidence rate

Industry

Injury

Journey claims

Liability confirmation

period

Lodgement year

Long duration claims

Lost time claims

Mechanism of

injury/disease

Nature of

injury/disease

The number of lost time claims per million hours worked and indicates the prevalence of workers’

compensation claims. It is based on the number of hours worked by employed persons in Western

Australia as supplied by the Australian Bureau of Statistics.

Section 6: GlossaryDEFINITION / EXPLANATION OF TERM

The number of dispute applications as a proportion of all active claims for the reference year.

Subsection 5(1) of the Act defines disease as including any physical or mental ailment, disorder, defect,

or morbid condition whether of sudden or gradual development. (See also Injury).

The outcome of the injury or disease as assessed by the insurer and the treating doctor. Categories

include:

temporary incapacity

permanent incapacity - partial

permanent incapacity - total.

The incidence rate is the number of lost time claims per hundred employees (part-time, full-time,

casual, and seasonal) in Western Australia.

Industry classification is based on the Australian and New Zealand Standard Industrial Classification

(ANZSIC) 2006 , published by the Australian Bureau of Statistics. The ANZSIC system groups together

businesses that carry out similar economic activities and is structured into a hierarchy of units reflecting

different levels of description (available at abs.gov.au)

Injury is defined under subsection 5(1) of the Act as:

1. A personal injury by accident arising out of or in the course of employment or while acting on the

employer’s instructions.

2. A disabling industrial disease (for example, poisoning, lung disease).

3. A disease contracted in the course of employment or the recurrence or aggravation

of a pre-existing disease where the employment contributed to a significant degree (see also

Disease).

Up to 24 December 1993, workers' compensation claims could be lodged for injuries sustained while

travelling to and from work. Journey claims have since been excluded from claims data.

The number of calendar days between the date the claim was lodged with the insurer and the first date

on which the insurer made a confirmation (accepted or rejected) about liability for the claims.

The financial year in which the claim was lodged with the insurer.

Workers' compensation claims for which the injury/disease results in an absence from work of at least

60 days or shifts.

Lost time claims are claims for which the injury/disease results in an absence from work of at least one

day or shift.

The mechanism of injury/disease refers to the action, exposure or event that best describes the

circumstances that resulted in the most serious injury or disease. The full list of inclusions/exclusions

for this classification is available from Safe Work Australia's Type of Occurrence Classification System

3rd edition, revision 1 (available online at safeworkaustralia.gov.au)

The nature of injury or disease classification is intended to identify the most serious injury or disease

suffered by the worker. The full list of inclusions/exclusions for this classification is available from Safe

Work Australia Type of Occurrence Classification System 3rd edition, revision 1 (available online at

safeworkaustralia.gov.au)



TERM

Occupation

Pending claims

Work status


Section 6: Glossary

Occupational classification is based on the Australian and New Zealand Standard Classification of

Occupations (ANZSCO) published by the Australian Bureau of Statistics.

It is a skill-based classification which encompasses all occupations in the Australian workforce

(available at abs.gov.au).

Where a decision to accept or decline liability for a worker's compensation claim is extended by an

insurer until further information is obtained (e.g. medical information).

This indicator provides a snapshot, as at 31 January 2014, of the work status of claimants with claims

lodged between 2010/11 and 2012/13. A lag period is required before reporting this indicator so that

claims have developed sufficiently to provide meaningful information.

Worker As defined in Section 5 of the Workers' Compensation and Injury Management Act 1981, a worker is

defined as:

(a) any person to whose service any industrial award or industrial agreement applies; and

(b) any person engaged by another person to work for the purpose of the other person's trade or

business under a contract with him for service, the remuneration by whatever means of the person

so working being in substance for his personal manual labour or services.



Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification

2006 . Canberra; Commonwealth of Australia 2006

Australian Bureau of Statistics, Australian and New Zealand Standard Classification of

Occupations . Canberra; Commonwealth of Australia 2006

Safe Work Australia, Type of Occurrence Classification System 3rd edition revision 1 . Canberra:

Commonwealth of Australia 2008

Section 7: References



1

2

3

4

5 Information concerning the accuracy and appropriate uses of the data or concerning other workers’

compensation data may be obtained by contacting WorkCover WA.

Section 8: Disclaimer

Due to the dynamic nature of workers’ compensation claims, the interpretation of data contained within this

report (the data) must be undertaken with some caution. Data users are cautioned to consider carefully the

provisional nature of the data before using it for decisions that concern personal or public safety or the conduct

of business that involves substantial monetary or operational consequences.

The accuracy or reliability of the data is not guaranteed or warranted in any way. WorkCover WA has made a

reasonable effort to ensure that the data is up-to-date, accurate, complete, and comprehensive at the time of

disclosure. This data reflects data reported to this agency by insurers for the reporting periods indicated. Data

users are responsible for ensuring by independent verification its accuracy, currency or completeness.

Neither WorkCover WA, or its agencies or representatives are responsible for data that is misinterpreted or

altered in any way. Derived conclusions and analysis generated from this data are not to be considered

attributable to WorkCover WA.

This data is provided as is and in no event shall WorkCover WA, its agencies or representatives be liable for any

damages, including, without limitation, damages resulting from lost data or lost profits or revenue, the costs of

recovering such data, the costs of substitute data, claims by third parties or for other similar costs, or any special,

incidental, punitive or consequential damages, arising out of the use of the data.


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