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Contents (2011 - 37)
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Workers Compensation Regulation 2010
Repealed version for 30 June 2016 to 31 August 2016 (accessed 20 September 2017 at 06:47)
Part 18
Part 18 Insurance premiums
Division 1 Preliminary
143A   Application of Part
This Part is subject to the Workers Compensation Market Practice and Premiums Guidelines.
144   Definitions
In this Part:
claim means a claim made by a worker against an employer to which a policy relates.
cost of claims means:
(a)  in relation to the calculation of a premium for the issue or renewal of an employer’s policy (other than a retro-paid loss premium policy):
(i)  except as provided by paragraph (ii), the cost of claims (within the meaning of Division 4) for an injury year for the employer, being that cost as at the commencement of the period of insurance to which the premium relates, or
(ii)  after that period of insurance has expired, the cost of claims (within the meaning of that Division) for an injury year for the employer, being that cost as at the expiration of that period, and
(b)  in relation to the calculation of a premium for the issue or renewal of an employer’s policy (being a retro-paid loss premium policy), the cost of claims for the employer for the period of insurance concerned.
decreasing adjustment has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
employer includes a person who proposes to become an employer.
GST has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
input tax credit entitlement, in relation to an employer, means the amount of input tax credit that may be claimed by the employer in accordance with the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth in respect of the issue or renewal of a policy of insurance expressed as a percentage of the GST payable by the employer in respect of the issue or renewal of that policy.
insurer means a licensed insurer, or a former licensed insurer, within the meaning of the 1987 Act.
period of insurance, in relation to a policy, means a period for which an insurer assumes risk under the policy, being a period which commences on the first day on which the policy is in force after having been issued or renewed.
policy or policy of insurance means a policy of insurance within the meaning of the 1987 Act.
retro-paid loss premium policy means a policy to which the optional alternative method of premium calculation (within the meaning of section 168A of the 1987 Act before the repeal of that section) applies.
wages means wages as defined in section 174 (9) of the 1987 Act.
145   Meaning of “injury year”
In this Part, a reference to an injury year, when made in relation to the calculation of a premium for the issue or renewal of a policy, is a reference to any of the successive periods of 12 consecutive months occurring before the commencement of the period of insurance for which the premium is or is to be calculated.
146   Non wages-based calculation of premium
If the manner of calculation of the premium payable for a policy of insurance is not based on the wages payable to workers:
(a)  a reference in this Part to wages is to be read as a reference to that other basis of calculation of the premium, and
(b)  the form of any notice or declaration under this Part is to be appropriately modified having regard to the manner of calculation of the premium.
Division 2 Declaration of wages
147   Employer to supply insurer with return relating to wages—standard policies
(1)  An employer must, as soon as practicable (but not later than 2 months) after:
(a)  making an application to an insurer for the issue of a policy, or
(b)  the renewal of a policy,
supply the insurer concerned with a notice in the approved form, duly completed, which contains a reasonable estimate of the wages that will be payable by the employer during the relevant period of insurance to workers employed by the employer.
(1A)  Subclause (1) (b) does not apply to a small employer.
(2)    (Repealed)
(3)  An employer must, not later than 4 months after the end of the relevant period of insurance relating to a policy, supply the insurer who issued or renewed the policy with a notice in the approved form, duly completed, which contains a full and correct declaration by the employer of the wages that were actually paid by the employer during that period of insurance to workers employed by the employer.
(3A)  However, subclause (3) applies in relation to a policy of insurance issued to an employer (other than a small employer) before 4 pm on 30 June 2014 as if the reference in that subclause to 4 months were a reference to 2 months.
(4)  In this clause, small employer, in relation to a policy of insurance, has the same meaning as in the Workers Compensation Market Practice and Premiums Guidelines that apply to that policy.
(5)  This clause does not apply in relation to a retro-paid loss premium policy.
148   Employer to supply insurer with return relating to wages—retro-paid loss premium policies
(1)  This clause applies in relation to a retro-paid loss premium policy.
(2)  An employer must, at least 2 months before the commencement of a period of insurance, supply the insurer concerned with a notice in the approved form, duly completed, which contains a reasonable estimate of the wages that will be payable by the employer during the period of insurance to workers employed by the employer.
(3)  An employer must, at the request of an insurer who issued a policy at any time during the period of insurance of the policy, supply the insurer with a notice in the approved form, duly completed, which contains a full and correct declaration by the employer of the wages that have actually been paid by the employer during that period of insurance to workers employed by the employer up to the date specified in the insurer’s request.
(4)  An employer must, not later than 2 months after the end of the period of insurance of a policy, supply the insurer who issued the policy with a notice in the approved form, duly completed, which contains a full and correct declaration by the employer of the wages that were actually paid by the employer during that period of insurance to workers employed by the employer.
149   Experience premium return
For the purpose of ascertaining the premium payable by an employer in respect of a period of insurance, an insurer to whom the employer has applied for the issue or renewal of a policy may, by notice in writing served on the employer not later than 1 month after the commencement or end of the period of insurance, require the employer to furnish the insurer, within 28 days of service of the notice:
(a)  with a declaration in the approved form, and
(b)  a statement setting forth (with respect to the last 2 injury years that occurred before the commencement of the period of insurance) the particulars relating to wages required by the attachment to that form to be inserted in it.
150   Offence by employer
An employer who, without reasonable excuse, refuses or fails to comply with clause 147 or 148 or with a requirement made in accordance with clause 149 is guilty of an offence.
Maximum penalty: 20 penalty units.
Division 3 Input tax credit entitlements
151   Employer to give insurer notice of input tax credit entitlement
An employer must, prior to the commencement of the period of insurance for which a premium is to be calculated, notify the insurer concerned in writing of the employer’s input tax credit entitlement.
Division 4 Certification of cost of claims
152   Definitions
(1)  In this Division, cost of claims means:
(a)  in relation to an injury year related to, or a period of insurance for, a policy issued or renewed so as to take effect before 4 pm on 30 June 2015 (other than a retro-paid loss premium policy)—the total of the following costs:
(i)  the total of the costs of each individual claim of which the insurer has notice at the time of expiry or renewal (as appropriate) of the policy concerned, being a claim made against a particular employer with respect to an injury received (or that is deemed by the 1987 Act or the former Act to have been received) during the injury year or the period of insurance, whichever is relevant, but not including any claim under section 10 (Journey claims) or section 11 (Recess claims) of the 1987 Act,
(ii)  the total of the costs of payment of provisional weekly payments of compensation and provisional payment of medical expenses compensation, if any, under Part 3 of Chapter 7 of the 1998 Act by the insurer, being payments of compensation on the basis of provisional acceptance of liability to a worker employed by a particular employer with respect to an injury received (or that is deemed by the 1987 Act to have been received) during the injury year or the period of insurance, and
(a1)  in relation to an injury year related to, or a period of insurance for, a policy issued or renewed so as to take effect on or after 4 pm on 30 June 2015 but before 4 pm on 30 June 2016 (other than a retro-paid loss premium policy)—the amount calculated in accordance with the relevant insurance premiums order that applies to the policy concerned, and
(a2)  in relation to an injury year related to, or a period of insurance for, a policy issued or renewed so as to take effect on or after 4 pm on 30 June 2016—the amount calculated in accordance with the Workers Compensation Market Practice and Premiums Guidelines, and
(b)  in relation to an injury year related to, or a period of insurance for, a retro-paid loss premium policy—the total of the following costs:
(i)  the total of the costs of each individual claim of which the insurer has notice at the time of each adjustment date concerned, being a claim made against a particular employer with respect to an injury received (or that is deemed by the 1987 Act or the former Act to have been received) during the period of insurance, but not including any claim under section 10 (Journey claims) or section 11 (Recess claims) of the 1987 Act,
(ii)  the total of the costs of payment of provisional weekly payments of compensation and provisional payment of medical expenses compensation, if any, under Part 3 of Chapter 7 of the 1998 Act by the insurer, being payments of compensation on the basis of provisional acceptance of liability to a worker employed by a particular employer with respect to an injury received (or that is deemed by the 1987 Act to have been received) during the period of insurance,
but, in any case where a single event leads to 3 or more individual claims, the total costs of all those claims in relation to that event are not to exceed the amount that is twice the relevant large claim limit for the policy (as determined in accordance with clause 154 (5)–(7) or the relevant insurance premiums order (as appropriate)).
(2)  Despite subclause (1), cost of claims, in relation to a policy issued or renewed so as to take effect before 4 pm on 30 June 1995, has the meaning given to it by clause 135 of the Workers Compensation Regulation 2003 before its substitution by the Workers Compensation Amendment (Retro-Paid Loss Premium Method) Regulation 2009.
153   Prevention of double allowance for provisional compensation payments
(1)  In this clause:
provisional compensation payment means provisional weekly payment of compensation or provisional payment of medical expenses compensation, under Part 3 of Chapter 7 of the 1998 Act, on the basis of provisional acceptance of liability to a worker.
(2)  For the purposes of paragraphs (a) and (b) of the definition of cost of claims in clause 152 (1), if payments are made in respect of a claim pursuant to the 1987 Act and provisional compensation payments have been made in respect of the injury concerned:
(a)  the provisional compensation payments are, for the purposes of determining the cost of the claim, taken to be payments made by the insurer in respect of the claim pursuant to the 1987 Act and are to be included as such under clause 154, and
(b)  clause 155 does not apply to those provisional compensation payments, and
(c)  the cost of those provisional compensation payments is not to be included in the total of the costs of provisional compensation payments under paragraphs (a) (ii) and (b) (ii) of the definition of cost of claims in clause 152 (1).
154   Cost of an individual claim
(1)  For the purposes of paragraphs (a) and (b) of the definition of cost of claims in clause 152 (1), the cost of an individual claim is (except as provided by subclause (2)) the sum of the following:
(a)  the payments, if any, made by the insurer in respect of the claim pursuant to the 1987 Act or the former Act,
(b)  the payments, if any, of damages at common law and under the Compensation to Relatives Act 1897 made by the insurer either in satisfaction of judgments relating to the claim or in settlement of the claim,
(c)  fees and expenses, if any, paid by the insurer to medical practitioners, investigators or assessors in respect of the investigation of the claim,
(d)  legal costs, if any, paid by the insurer in relation to the settlement or investigation of the claim or as a consequence of proceedings at law, including any such costs that were paid to the claimant or incurred by the insurer on the insurer’s own account,
(e)  the most accurate estimation for the time being of the insurer’s outstanding liability reasonably likely to arise out of the claim,
whether the payments were made or the fees, expenses or costs were paid (or the estimation relates to liability that will arise) during or after the injury year or period of insurance in which the injury to which the claim relates was received (or is deemed by the 1987 Act or the former Act to have been received).
(2)  However, the cost of an individual claim:
(a)  does not include any amount calculated by reference to the insurer’s costs of administration or profit, and
(b)  in relation to a policy (other than a retro-paid loss premium policy)—is to be reduced by the amounts, if any, that have been recovered or are recoverable by the insurer from any source, other than an amount recovered or recoverable under section 160 of the 1987 Act, from the Insurers’ Contribution Fund or pursuant to a policy of reinsurance, and
(c)  in relation to a retro-paid loss premium policy—is to be reduced by the amounts, if any, that have been recovered or that, in the opinion of the Nominal Insurer, are recoverable by the insurer from any source, other than an amount recovered or recoverable under section 160 of the 1987 Act, from the Insurers’ Contribution Fund or pursuant to a policy of reinsurance, and
(d)  is to be reduced by:
(i)  in the case where the injured worker’s weekly payment of compensation is less than $500 or is not known (for example, the claim is for payment of medical expenses compensation only)—$500 or, if the cost of the claim is less than $500, that lesser cost, or
(ii)  in any other case—an amount that is the lesser of the following:
(A)  the amount that the injured worker is entitled to receive as one week’s weekly payment of compensation,
(B)  if the claim is covered by a policy of insurance that was issued or renewed so as to take effect before 4pm on 30 June 2006—$1,449.50,
(C)  if the claim is covered by a policy of insurance that was issued or renewed so as to take effect on or after 4pm on 30 June 2006, the amount specified by the relevant insurance premiums order that applies to that policy, and
(e)  does not include any amount paid or payable under section 64A of the 1987 Act (Compensation for cost of interpreter services), and
(f)  does not include any amount which section 54 (4) (b) of the 1998 Act (Second-injury scheme) requires to be excluded from the claims experience of the employer, and
(g)  is to be reduced by an amount that is the most accurate estimation for the time being by the insurer of the amount of any input tax credit or decreasing adjustment that may be claimed or has been claimed by the insurer in respect of the payments, fees, expenses or costs included in the cost of the individual claim under subclause (1), pursuant to the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
(3)  In this clause, references to the insurer’s outstanding liability reasonably likely to arise out of the claim are references to the amount calculated to be sufficient to meet all reasonably likely future payments in respect of the claim, including adjustments (at such rates, if any, as the Authority from time to time determines) to take account of expected future earnings on investments and expected future inflation or deflation on that amount.
(4)  For the purpose of this clause, in the case of a claim in respect of the death of or injury to a person caused by or arising out of a motor accident as defined in the Motor Accidents Act 1988:
(a)  the insurer’s liability to indemnify an employer in respect of the employer’s liability to the claimant independently of the 1987 Act is taken to be limited to the amount of damages (if any) that would be payable if Division 3 of Part 5 of the Workers Compensation Act 1987 applied to the award of damages concerned, and
(b)  the insurer is taken not to be liable for legal costs connected with proceedings under the Motor Accidents Compensation Act 1999 if damages would not have been payable if that Division applied to that award.
(5)  If the cost of an individual claim exceeds the large claim limit that applied when the injury to which the claim relates was received (or is deemed by the 1987 Act or the former Act to have been received), the cost of the individual claim is the amount of that large claim limit.
(6)  For the purposes of subclause (5) in relation to a policy (other than a retro-paid loss premium policy), the large claim limit specified in Column 2 of the Table to this clause applies to an injury that was received or is deemed to have been received during a year specified in Column 1 of that Table in relation to that limit.
(7)  For the purposes of subclause (5), in relation to a retro-paid loss premium policy, an employer is, before the commencement of the policy, to elect a large claim limit of one of the following amounts to apply to injuries received or deemed to have been received during the period of insurance:
(a)  $350,000,
(b)  $500,000.
Large claim limits
Column 1
Column 2
Period of 12 months commencing with:
Large claim limit
30 June 1985
$100,000
30 June 1986
$200,000
30 June 1987 or 30 June of the years 1988 to 1994
$100,000
30 June 1995 or 30 June of the years 1996 to 2014
$150,000
30 June 2015
The amount specified in the relevant insurance premiums order that applies to the policy concerned
30 June 2016 or 30 June of any subsequent year
The amount specified in the Workers Compensation Market Practice and Premiums Guidelines that applies to the policy concerned
155   Cost of provisional payments of compensation
(1)  For the purposes of paragraphs (a) and (b) of the definition of cost of claims in clause 152 (1), the cost of payment of provisional weekly payments of compensation and provisional payment of medical expenses compensation, if any, with respect to a particular injury is (except as provided by subclause (2)) the sum of the following:
(a)  the sum of the payments of provisional weekly payments of compensation and provisional medical expenses compensation, if any, made by the insurer in respect of the injury pursuant to the 1998 Act,
(b)  fees and expenses, if any, paid by the insurer to medical practitioners, investigators or assessors in respect of the investigation of the injury,
(c)  legal costs, if any, paid by the insurer in relation to the investigation of the injury, the determination of liability to make provisional weekly payments of compensation or provisional payment of medical expenses compensation and otherwise in complying with Divisions 1 and 3 of Part 3 of Chapter 7 of the 1998 Act,
(d)  the most accurate estimation for the time being of the insurer’s outstanding liability to make provisional weekly payments of compensation and provisional payment of medical expenses compensation, if any, with respect to the injury,
whether the payments were made or the fees, expenses or costs were paid (or the estimation relates to liability that will arise) during or after the injury year or period of insurance in which the injury was received (or is deemed by the 1987 Act to have been received).
(2)  However, the cost of provisional weekly payments of compensation and provisional payment of medical expenses compensation with respect to a particular injury:
(a)  does not include any amount calculated by reference to the insurer’s costs of administration or profit, and
(b)  in relation to a policy (other than a retro-paid loss premium policy)—is to be reduced by the amounts, if any, that have been recovered or are recoverable by the insurer from any source, other than an amount recovered or recoverable under section 160 of the 1987 Act, from the Insurers’ Contribution Fund or pursuant to a policy of reinsurance, and
(c)  in relation to a retro-paid loss premium policy—is to be reduced by the amounts, if any, that have been recovered or that, in the opinion of the Nominal Insurer, are recoverable by the insurer from any source, other than an amount recovered or recoverable under section 160 of the 1987 Act, from the Insurers’ Contribution Fund or pursuant to a policy of reinsurance, and
(d)  is to be reduced by:
(i)  in the case where the injured worker’s provisional weekly payment of compensation is less than $500 or is not known (for example, the claim is for provisional payment of medical expenses compensation only)—$500 or, if the cost of the payments is less than $500, that lesser cost, or
(ii)  in any other case—an amount that is the lesser of the following:
(A)  the amount that the injured worker is entitled to receive as one week’s provisional weekly payment of compensation,
(B)  if the payment is under a policy of insurance that was issued or renewed so as to take effect before 4pm on 30 June 2006—$1,449.50,
(C)  if the payment is under a policy of insurance that was issued or renewed so as to take effect on or after 4pm on 30 June 2006, the amount specified by the relevant insurance premiums order that applies to that policy, and
(e)  does not include any amount paid or payable under section 64A (Compensation for cost of interpreter services) of the 1987 Act, and
(f)  does not include any amount that section 54 (4) (b) of the 1998 Act (Second-injury scheme) requires to be excluded from the claims experience of the employer, and
(g)  is to be reduced by an amount that is the most accurate estimation for the time being by the insurer of the amount of any input tax credit or decreasing adjustment that may be claimed or has been claimed by the insurer in respect of the payments, fees, expenses or costs included in the cost of provisional weekly payments of compensation or provisional payment of medical expenses compensation under subclause (1), pursuant to the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
(3)  In this clause, references to the insurer’s outstanding liability to make provisional weekly payments of compensation or provisional payment of medical expenses compensation with respect to an injury are references to the amount calculated to be sufficient to meet all reasonably likely future provisional payments of weekly compensation or medical expenses compensation in respect of the injury.
156   Certificates relating to cost of claims
(1)  For the purpose of ascertaining the premium payable by an employer in respect of a period of insurance:
(a)  an employer to whom a policy has been issued by an insurer, or
(b)  another insurer,
may, by notice in writing served on the insurer who issued the policy not later than 1 month after the commencement of the period of insurance, require the insurer who issued the policy to furnish the employer or other insurer, within 21 days of service of the notice, with a certificate in the approved form, specifying (with respect to the whole or any part of the last 3 injury years which occurred or will have occurred before the commencement of the period of insurance) the particulars relating to costs of claims required by the form to be inserted in it.
(2)  An insurer who, without reasonable excuse:
(a)  fails to comply with a requirement made in accordance with subclause (1), or
(b)  in purported compliance with any such requirement, furnishes a certificate knowing that the certificate contains particulars that are false or misleading in a material particular or knowing that the certificate is incomplete in a material particular,
is guilty of an offence.
Maximum penalty: 20 penalty units.
157   Effect of certificate
(1)  Where an insurer has, in accordance with clause 156, furnished a certificate to an employer or another insurer for the purpose of ascertainment of the premium payable in respect of a period of insurance, the particulars relating to costs of claims specified in the last or only certificate so furnished are binding on the employer and any insurer for the purpose of calculation at any time of those costs of claims as at the commencement of that period of insurance, except as provided by subclause (3).
(2)    (Repealed)
(3)  If an insurer (other than the insurer who furnished the certificate) does not agree with any of those particulars and applies to the Authority for a variation of those particulars (and the application is not withdrawn or, in the opinion of the Authority, abandoned), the particulars relating to costs of claims specified in the certificate as confirmed or varied by the Authority are binding on any insurer for the purpose of calculation at any time of those costs of claims as at the commencement of that period of insurance.
158   Certificates by scheme agents relating to cost of claims— retro-paid loss premium policy
(1)  For the purpose of ascertaining the premium payable by an employer in respect of a period of insurance in relation to a retro-paid loss premium policy, the Nominal Insurer may, by notice in writing, require the scheme agent through whom the policy was issued, to furnish the Nominal Insurer, within 21 days of service of the notice, with a certificate in the approved form, specifying the particulars relating to costs of claims requested in the notice.
(2)  A scheme agent must not, without reasonable excuse:
(a)  fail to comply with a requirement made in accordance with subclause (1), or
(b)  in purported compliance with any such requirement, furnish a certificate knowing that the certificate contains particulars that are false or misleading in a material particular or knowing that the certificate is incomplete in a material particular.
Maximum penalty: 20 penalty units.
159   Employers who were previously self-insurers
(1)  If an employer:
(a)  makes an application to an insurer for the issue or renewal of a policy, and
(b)  was a self-insurer during any part of the last 3 injury years occurring before the proposed period of insurance,
the cost of claims in relation to the period as a self-insurer is to be calculated (subject to any relevant determination of the Authority) as if the employer had been insured under a policy in respect of that period.
(2)  The provisions of this Division relating to insurers apply (subject to such modifications and exceptions as the Authority may determine) to such an employer in respect of the period as a self-insurer.
Division 5 Demand for premium
160   Notice of premium calculation
(1)  An insurer may not demand a premium for the issue or renewal of a policy to which the Workers Compensation Market Practice and Premiums Guidelines apply unless the insurer has sent or sends at the time to the employer a notice in the approved form, duly completed, relating to the calculation of the premium in respect of that employer.
(2)  The sending by an insurer of a notice referred to in subclause (1) to a broker or an intermediary or an agent of an employer (whether or not the notice is also addressed to the employer) does not constitute sending of the notice to the employer for the purposes of that subclause, but nothing in this subclause prevents the sending of any such notice to an employer by a postal or courier service.
Divisions 6, 7
161–165  (Repealed)
Division 8 Payment of premiums by instalments
Subdivision 1 Preliminary
166   Application of Division
(1)  Subdivisions 2 and 3 apply in relation to policies other than retro-paid loss premium policies.
(2)  Subdivisions 4 and 5 apply in relation to retro-paid loss premium policies.
167   Definition
In this Division, deposit premium, in relation to a retro-paid loss premium policy of insurance, means a premium for the policy calculated at the commencement of, or during, the period of insurance using the method for the calculation of a deposit premium set out in the relevant insurance premiums order that applies to that policy.
Subdivision 2 Payment in four instalments
168   Policies under which premiums may be paid in four instalments
(1)  An employer may elect to pay the premiums under a policy of insurance in four instalments (together with any required adjustment of premium) under this Subdivision if:
(a)  the period of insurance is 12 months, and
(b)  the basic tariff premium (within the meaning of the Workers Compensation Market Practice and Premiums Guidelines) for the employer’s policy of insurance at the time at which the insurer first demands a premium for the policy exceeds $1,000, and
(c)  the election is made within 1 month after the commencement of the period of insurance to which the premiums relate.
(2)  Payment of the required instalments deposit (that is, Instalment No 1) within 1 month after the commencement of the period of insurance constitutes an election to pay by instalments.
(3)  For the purposes of this Subdivision, the required instalments deposit is, subject to clause 169 (3), an amount equal to one-quarter of the estimated premium for the policy (as estimated for that payment).
169   Number, size and times for payment of instalments
(1)  If an employer elects to pay the premiums under a policy of insurance by instalments in accordance with this Subdivision and pays the required instalments deposit (that is, Instalment No 1) within 1 month after the commencement of the period of insurance, the premiums are payable in instalments as follows:
Instalment No 2
Payment to be made within 4 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which one half of the estimated premium for the policy (as estimated for that payment) exceeds the amount paid as the required instalments deposit.
Instalment No 3
Payment to be made within 7 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which three-quarters of the estimated premium for the policy (as estimated for that payment) exceeds the amounts already paid as instalments (including the required instalments deposit).
Instalment No 4
Payment to be made within 10 months after the commencement of the period of insurance. The amount of the instalment is to be the balance of the estimated premium for the policy (as estimated for that payment) taking into account the amounts already paid as instalments (including the required instalments deposit).
Adjustment of Premium
Payment to be made:
(a)  within 1 month after service on the employer of a notice that such an adjustment is due, or
(b)  within 3 months after service of the notice and in approximately equal monthly instalments as set out in the notice if:
(i)  the amount of the adjustment is more than $1,000, and
(ii)  the employer elects to pay the amount by monthly instalments, and
(iii)  the policy to which the notice relates was issued at or after 4 pm on 30 June 2014.
The amount of such an adjustment is the amount by which the actual premium payable for a policy exceeds the amounts already paid by way of instalments (including the required instalments deposit).
(2)  A notice in relation to an adjustment of premium as referred to in subclause (1) does not affect the service of a notice under section 172 (1) (c) of the 1987 Act.
(3)  If the estimated premium for the policy cannot be determined by the time the required instalments deposit is required to be paid, the amount of the required instalments deposit is to be:
(a)  one-quarter of the estimated premium for the employer for the previous period of insurance, or
(b)  if there was no such previous period of insurance—$300 or such greater amount as the employer and the insurer may agree.
(4)  Subclause (3) applies only if the estimated premium cannot be determined because the employer has not yet supplied the relevant notice under clause 147 (1) and the insurer cannot estimate the premium by reference to wages for the previous period of insurance in accordance with the relevant insurance premiums order or the Workers Compensation Market Practice and Premiums Guidelines.
Subdivision 3 Payment in twelve instalments
170   Policies under which premiums may be paid in twelve instalments
(1)  An employer may elect to pay the premiums under a policy of insurance in twelve instalments (together with any required adjustment of premium) under this Subdivision if:
(a)  the period of insurance is 12 months, and
(b)  the basic tariff premium (within the meaning of the Workers Compensation Market Practice and Premiums Guidelines) for the employer’s policy of insurance at the time at which the insurer first demands a premium for the policy exceeds $5,000, and
(c)  the election is made within 1 month after the commencement of the period of insurance to which the premiums relate.
(2)  Payment of the required instalments deposit (that is, Instalment No 1) within 1 month after the commencement of the period of insurance constitutes an election to pay by instalments.
(3)  For the purposes of this Subdivision, the required instalments deposit is, subject to clause 171 (3), an amount equal to one-twelfth of the estimated premium for the policy (as estimated for that payment).
171   Number, size and times for payment of instalments
(1)  If an employer elects to pay the premiums under a policy of insurance by instalments in accordance with this Subdivision and pays the required instalments deposit (that is, Instalment No 1) within 1 month after the commencement of the period of insurance, the premiums are payable in instalments as follows:
Instalment No 2
Payment to be made within 2 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which two-twelfths of the estimated premium for the policy (as estimated for that payment) exceeds the amount paid as the required instalments deposit.
Instalment No 3
Payment to be made within 3 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which three-twelfths of the estimated premium for the policy (as estimated for that payment) exceeds the amount paid as instalments (including the required instalments deposit).
Instalment Nos 4–11
Payment to be made within 1 month after the date on which the last instalment was due. The amount is to be calculated in the same manner as Instalment Nos 2 and 3 adjusted appropriately according to the number of the instalment to be paid.
Instalment No 12
Payment to be made within 12 months after the commencement of the period of insurance. The amount of the instalment is to be the balance of the estimated premium for the policy (as estimated for that payment) taking into account instalments already paid (including the required instalments deposit).
Adjustment of Premium
Payment to be made:
(a)  within 1 month after service on the employer of a notice that such an adjustment is due, or
(b)  within 3 months after service of the notice and in approximately equal monthly instalments as set out in the notice if:
(i)  the amount of the adjustment is more than $1,000, and
(ii)  the employer elects to pay the amount by monthly instalments, and
(iii)  the policy to which the notice relates was issued at or after 4 pm on 30 June 2014.
The amount of such an adjustment is the amount by which the actual premium payable for a policy exceeds the amounts already paid by way of instalments (including the required instalments deposit).
(2)  A notice in relation to an adjustment of premium as referred to in subclause (1) does not affect the service of a notice under section 172 (1) (c) of the 1987 Act.
(3)  If the estimated premium for the policy cannot be determined by the time the required instalments deposit (that is, Instalment No 1) or Instalment Nos 2, 3 or 4 are required to be paid, the amount of the required instalments deposit or other instalment is to be:
(a)  one-twelfth of the estimated premium for the employer for the previous period of insurance, or
(b)  if there was no such previous period of insurance—$500 or such greater amount as the employer and the insurer may agree.
(4)  Subclause (3) applies only if the estimated premium cannot be determined because the employer has not yet supplied the relevant notice under clause 162 (1) and the insurer cannot estimate the premium by reference to wages for the previous period of insurance in accordance with the relevant insurance premiums order or the Workers Compensation Market Practice and Premiums Guidelines.
Subdivision 4 Payment in four instalments—retro-paid loss premium policies
172   Policies under which premiums may be paid in four instalments
(1)  An employer may elect to pay the deposit premium under a retro-paid loss premium policy in four instalments (together with any required adjustments of premium) under this Subdivision if:
(a)  the period of insurance is 12 months, and
(b)  the election is made within 1 month after the commencement of the period of insurance to which the deposit premium relates.
(2)  Payment of the first instalment (that is, Instalment No 1) within 1 month after the commencement of the period of insurance constitutes an election to pay by instalments under this Subdivision.
(3)  For the purposes of this Subdivision, the first instalment is an amount equal to one-quarter of the deposit premium for the policy.
173   Number, size and times for payment of instalments
If an employer elects to pay a deposit premium by instalments in accordance with this Subdivision and pays the first instalment (that is, Instalment No 1) within 1 month after the commencement of the period of insurance, the remaining instalments are payable as follows:
Instalment No 2
Payment to be made within 4 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which one half of the deposit premium for the policy (as calculated for that payment) exceeds the amount paid as the first instalment.
Instalment No 3
Payment to be made within 7 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which three-quarters of the deposit premium for the policy (as calculated for that payment) exceeds the amounts already paid as instalments.
Instalment No 4
Payment to be made within 10 months after the commencement of the period of insurance. The amount of the instalment is to be the balance of the deposit premium for the policy (as calculated for that payment) taking into account the amounts already paid as instalments.
Note.
 Adjustments of the actual premium for a retro-paid loss premium policy are calculated at the relevant adjustment dates in accordance with the relevant insurance premiums order. Payment is to be made within 1 month after service on the employer of a notice that payment of such an adjustment is due: see section 172 (1) (c) of the 1987 Act.
Subdivision 5 Payment in twelve instalments—retro-paid loss premium policies
174   Policies under which premiums may be paid in twelve instalments
(1)  An employer may elect to pay the deposit premium under a retro-paid loss premium policy in twelve instalments (together with any required adjustment of premium) under this Subdivision if:
(a)  the period of insurance is 12 months, and
(b)  the election is made within 1 month after the commencement of the period of insurance to which the premium relates.
(2)  Payment of the first instalment (that is, Instalment No 1) within 1 month after the commencement of the period of insurance constitutes an election to pay by instalments.
(3)  For the purposes of this Subdivision, the first instalment is an amount equal to one-twelfth of the deposit premium for the policy.
175   Number, size and times for payment of instalments
If an employer elects to pay the deposit premium under a policy of insurance by instalments in accordance with this Subdivision and pays the first instalment (that is, Instalment No 1) within 1 month after the commencement of the period of insurance, the remaining instalments are payable as follows:
Instalment No 2
Payment to be made within 2 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which two-twelfths of the deposit premium for the policy (as calculated for that payment) exceeds the amount paid as the first instalment.
Instalment No 3
Payment to be made within 3 months after the commencement of the period of insurance. The amount of the instalment is to be the amount by which three-twelfths of the deposit premium for the policy (as calculated for that payment) exceeds the amount paid as instalments.
Instalment Nos 4–11
Payment to be made within 1 month after the date on which the last instalment was due. The amount is to be calculated in the same manner as Instalment Nos 2 and 3 adjusted appropriately according to the number of the instalment to be paid.
Instalment No 12
Payment to be made within 12 months after the commencement of the period of insurance. The amount of the instalment is to be the balance of the deposit premium for the policy (as calculated for that payment) taking into account instalments already paid.
Note.
 Adjustments of the actual premium for a retro-paid loss premium policy are calculated at the relevant adjustment dates in accordance with the relevant insurance premiums order. Payment is to be made within 1 month after service on the employer of a notice that payment of such an adjustment is due: see section 172 (1) (c) of the 1987 Act.
Division 9 Miscellaneous
176   Transitional—operation of amendments
An amendment to this Part does not apply to or in respect of any policy of insurance that takes effect before the amendment commences, unless the amendment otherwise specifically provides.
177   Rebate of premium where fraud or mistake involved in claims
(1)  An employer is entitled to a rebate for an overpayment of an insurance premium if:
(a)  an amount of a claim was included in the costs of claims used in the calculation of the insurance premium, and
(b)  on or after 1 January 2000:
(i)  a court in a criminal prosecution determined that the claim or part of the claim was fraudulent (whether or not a person is convicted for the fraud), or
(ii)  the Compensation Court or the Commission in a final determination determined that the claim was made by a person who was not a worker, or
(iii)  the Authority:
(A)  is satisfied that the claim is one to which section 235B of the 1998 Act applies, or
(B)  has made an order under section 235D of the 1998 Act in relation to the claim.
(2)  An employer is entitled to such a rebate in relation to each period of insurance for which the amount of a claim referred to in subclause (1) was included in the calculation of the insurance premium for that period.
(3)  The amount of the rebate that an employer is entitled to under this clause is to be determined by the Authority.