Government responds to the McDougall Review
A Bill to strengthen governance, regulation, and clarify agency roles in the NSW workers compensation system has been introduced to Parliament.
The State Insurance and Care Legislation Amendment Bill responds to recommendations 22, 40, 41, 43, 44, 45, 46, 47 and 48 of the McDougall Review (the Independent Review of icare and the State Insurance and Care Governance Act 2015).
It also responds to some overlapping recommendations made in the Legislative Council Standing Committee on Law and Justice 2020 Review of the Workers Compensation Scheme.
The Bill extends SIRA’s regulatory, investigative and enforcement powers to include icare, self-insurers, the NSW Self Insurance Corporation and, where appropriate, entities engaged in claims management functions.
Included in the Bill are new powers for SIRA to issue directions and enforceable undertakings to insurers that breach their licence conditions or the workers compensation legislation.
To clarify governance arrangements of the scheme, a clearer set of objectives and functions have been put forward for SIRA as the regulator of State insurance and care schemes and icare as the consolidated service provider.
The Bill makes two benefit reforms expanding the powers of commutation and settlement of lump sum death benefits, subject to the approval of the Personal Injury Commission.
The recommendations of the McDougall Review were made following extensive public consultation.
Following the McDougall Review and Law and Justice Review, there was a public consultation on proposed benefit-related reforms, two of which are implemented through this Bill.
In his Second Reading Speech, Minister for Customer Service and Digital Government Victor Dominello said the Government was confident the Bill would enhance the regulation and operation of the New South Wales system of insurance and compensation schemes long into the future.