ADDITIONAL RENEWAL PREMIUM PAYABLE FOR EVERY $100 IN CLAIM COST Note: Claim costs are based on a two year history. in the event that a claim cost occurs in the current year, the cost is used again in the second year calculation. This effectively doubles the figure stated below. The above chart depicts the additional premium payable for every $100 claim cost incurred upon the Renewal Premium for the three tariff classification listed. The calculations are based upon the NSW WorkCover Premium Order, as amended 2005/2006, as at 1 May 2006. The wages used with the calculation are $2 million per annum and $4 million per annum. Details on the three tariff classification rates: 15.42% - Cleaner (Government Contract) Tariff Classification number 786620 8.75% - Furniture Removalist/Delivery Tariff Classification number 611040 3.85% - Club Tariff Classification number 574000. EXAMPLE OF SAVINGS In the examples below we have used the figure of $800 per week in weekly wage benefits. To keep the example simple we have not included medical, rehabilitation, medical investigation, legal or travel costs. These costs are additional to the weekly wage benefit and impact the premium. An injured worker is off work, totally incapacitated for 2 weeks. A total of $1,600 is paid in wages. Using the above chart, the additional premium payable for one year is: CLEANER ($4m wages) $212.73 x 16 = $3,403.68 in additional premium ($2m wages) $167.87 x 16 = $2,685.92 in additional premium FURNITURE REMOVALIST ($4m wages) $121.66 x 16 = $1,946.56 in additional premium ($2m wages) $87.44 x 16 = $1,399.04 in additional premium CLUB ($4m wages) $82.82 x 16 = $1,325.12 in additional premium ($2m wages) $51.97 x 16 = $831.52 in additional premium Double the above amounts, if claim cost is incurred within the first year, as claim costs are used for two years within the premium calculation. Remember the figures above are only based upon two weeks wages without additional costs for treatment. PRE-EMPLOYMENT HEALTH ASSESSMENTS Savings can be gained from pre-employment medicals. By identifying workers susceptibility to injury, an employer can prevent some injuries from occurring. Cleaning company (A) in our example can save a minimum of $6,807.36 in premiums from a single claim, over a two year period. POST INJURY MANAGEMENT Where a claim is lodged, savings can be made through post injury management. By managing a claim and reducing the duration of the payments, savings to premiums can be achieved. Returning a worker to duties two weeks earlier through injury management practices reduces the costs incurred. Using our past example reducing the duration of weekly benefits by two weeks has the following savings to the workers compensation renewal premium. CLEANER ($4m wages) $212.73 x 16 = $3,403.68 savings in additional premium ($2m wages) $167.87 x 16 = $2,685.92 savings in additional premium FURNITURE REMOVALIST ($4m wages) $121.66 x 16 = $1,946.56 savings in additional premium ($2m wages) $87.44 x 16 = $1,399.04 savings in additional premium CLUB ($4m wages) $82.82 x 16 = $1,325.12 savings in additional premium ($2m wages) $51.97 x 16 = $831.52 savings in additional premium Double the above amounts if claim cost savings is achieved within the first year, as claim costs are used for two years within the premium calculation.