Safety Matters - Rail, Tram and Bus Union of NSW

Compensation Payments
Provisional Payments
Provisional payments are a new payment mechanism introduced on 1st January
2002. It only applies to new claims made on or after that date.
Provisional payments consist of two main components:
• A special provision for the early commencement of weekly payments prior
to the acceptance of liability for a claim. Payments are to commence within
7 days of receiving an Initial Notification of injury. They can be made for a
period of up to 12 weeks.
• A special provision for the acceptance and payment of medical expenses for
an amount of up to $5000.
The making of provisional payments does NOT constitute an admission
of liability by the insurer or employer. It is independent of the process of
determining liability for a claim.
Purpose of Provisional payments
To understand the purpose of provisional payments, its important to look at
some of the concepts that underpin the change, including workplace injury
management.
Aims of the Scheme
The principal aims of NSW workers compensation legislation are:
1. Prompt and effective treatment and return to work of injured workers
2. Income support for injured workers and their families
3. Fair and affordable premiums for employers with incentives for improved
performance
4. Efficient and cost-effective service delivery
The factors that have previously hindered injury management in NSW included
the unacceptably high levels of disputes and associated legal activity/costs.
Therefore, the development of new streamlined claims procedures, including
the making of early payments on a provisional basis, has been a critical area of
reform. It has been designed to improve outcomes for workers and employers
and prevent disputes.
BACK TO CONTENTS
Safety Matters A Guide for Workplace OHS Representatives
SECTION THREE
RAIL
TRAM AND BUS
13
A Summary of Workers Compensation in NSW
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