Workers' Compensation in Western Australia Annual Statistical Report 2009/10 to 2012/13

Transcription

1 Workers' Compensation in Western Australia Annual Statistical Report 2009/10 to 2012/13 July 2014

2 Citation WorkCover WA Perth, Western Australia: Western Australian Government Any queries or comments on this publication should be directed to: Research and Evaluation Branch Legislation and Scheme Information WorkCover WA Phone: (08) Fax: (08) WorkCover WA, Government of Western Australia 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. This publication is available at the WorkCover WA website: Published by the Western Australian Government Publication date: July 2014 WorkCover WA 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 2 Data as at 31 January 2014

3 The Western Australian workers' compensation scheme Introduction 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 2012/13 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 2012/13 and outline 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. 38,630 workers compensation claims lodged 1,234 Asbestos related diseases, journey claims and disallowed claims 37,396 work related injury and disease claims lodged 18,963 claims with no lost time 18,433 lost time claims lodged 37,396 work related injury and disease claims lodged 18,433 claims with lost time 1,571 lost time disease claims 16,862 lost time injury claims Figure 1: Profile of workers' compensation claims in the WA workers' compensation scheme in 2012/13 WorkCover WA 3 Data as at 31 January 2014

4 Geographic distribution of lost time claims in Western Australia Introduction In 2012/13, a total of 37,396 work-related injury and disease claims were lodged, of which 18,433 claims involved time lost from work with one day/shift or more, while 18,963 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 2012/13. The Perth metropolitan area has the highest number of lost time claims. Regions surrounding the Perth metropolitan area, including Peel, Wheatbelt, South West and Great Southern, have higher density of lost time claims compared to other regions. This pattern is reflective of population and employment density in Western Australia. 1,706 Regions with high density of lost time claims; Perth metropolitan, Peel, Wheatbelt, South West and Great Southern. WorkCover WA 4 Data as at 31 January 2014

5 Where does the data come from? 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. Table 1: Summary of national classification standards to code workers' compensation data 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 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. Where do I obtain more information? Workers compensation and injury management WorkCover WA Telephone: Bedbrook Place Shenton Park WA 6008 Prevention of work-related injuries and diseases WorkSafe WA Telephone: PO Box 294 West Perth WA 6872 * See Glossary for definitions. WorkCover WA 5 Data as at 31 January 2014

6 Introduction 3 Overview 7 Report format 8 Contents Page Section 1: Premium rates 1.0 Summary Average recommended premium rates Average actual premium rates 11 Section 2: Scheme statistics 2.0 Summary Claim numbers Claim payments Claim costs Claim management Dispute of claims Settlements 24 Section 3: Claimant characteristics 3.0 Summary Gender Age Industry Occupation 32 Section 4: Injury/disease attributes 4.0 Summary Level of incapacity Nature of injury Bodily location Mechanism Agency of occurrence 38 Section 5: Sprains and strains claims 5.0 Summary Claim numbers and costs Claim numbers and bodily locations of injury Claim payments and mechanism of injury Claimant characteristics Glossary References Disclaimer 49 WorkCover WA 6 Data as at 31 January 2014

7 Overview Summary The recommended premium rates in WA for 2014/15 fell by 6.7%, continuing the downward trend since This means the average recommended rate for 2014/15 reduced to 1.56% of total wages, down from 1.67% of total wages in 2013/14. 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 In 2012/13, the number of claims (both lost time and no lost time claims) fell by 3.4% relative to 2011/12. The decrease is primarily driven by a 7.3% reduction in the number of claims without lost time. On the other hand adjusted (real) claim payments, comprising direct compensation and service payments for 2012/13, continued to rise for the second consecutive year since 2010/11. Direct compensation (e.g. income payment) accounted for 65.6% of the total adjusted claim payments while service payments made up the remaining 34.4% in 2012/13. Timeframes for 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 6.9 months in 2010/11 to 7.3 months in 2012/13. The 'Return to work indicator' shows the proportion of lost time claimants who successfully returned to work has decreased over the three years since WorkCover WA commenced collecting information on return to work status in 2010/ % of workers with lost time claims had returned to work either in full or partial capacity in 2012/13, which is a reduction of 5.5% from 2010/11. 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 via section 92(f) deeds has increased steadily over the past four years by 36.7%. In contrast, the proportion of claims finalised by Memorandum of Agreements has lowered by 3.1% over the same period. Claim demographics show that differences in the number of claims and claim frequency rate between males and females persist over the past four years. The size of the gender gap has remained stable reflecting the continued gender disparity in labour force participation. In 2012/13, the number of claims lodged by male workers was twice that of females, while the claims frequency rate for male workers was 22.4% higher than female workers. Workers in the and year age groups had the highest frequency rate of lost time claims between 2009/10 and 2012/13. Construction, Health Care, Manufuacturing, Mining and Retail are the top five industries responsible for more than 50% of lost time claims lodged between 2009/10 and 2012/13. Arts and Recreation Services had the highest claims frequency rate, followed by Manufacturing, and Transport, Postal and Warehouse. Workers in blue collar occupations, such as technicians and trade workers, labourers, and machinery operators, incurred the highest number of lost time claims. The most common causes of work-related injuries are body stressing (physical stress on muscles, tendons and ligaments) and slips, trips and falls occuring on the upper limbs or trunk of the body. WorkCover WA 7 Data as at 31 January 2014

8 Report format 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. Timeframe for reporting of data Section 1: Premium Rates For average recommended premium rates, data is reported between 1992/93 and 2014/15. For average actual premium rates, data is reported between 1992/93 and 2012/13. For both average recommended and actual premium rates, emphasis is placed on the four most recent years. Section 2: Scheme Statistics With the exception of return to work (RTW) indicators, data spans the time period 2009/10 to 2012/13. WorkCover WA commenced collecting information on the work status of each claimant from 1 July 2010 and RTW indicators are only reported from 2010/11 onwards. Section 3: Claimant characteristics Data is reported between 2009/10 and 2012/13 for gender and age indicators. Industry and occupation information is reported from 2009/10 to 2012/13. WorkCover WA uses the national classification standards for industry (ANZSIC) and occupation (ANZSCO) from 1 July See page 4 for further information. Section 4: Injury/disease attributes For lost time claims, data is presented between 2009/10 and 2012/13. Sprains and strains claims Claims associated with sprains and strains continue to be the most common type of compensable injury. A feature section for sprains and strains claims is included in this report to assist in identifying elements affecting these injuries, and establishing relevant incidence prevention and injury management strategies. WorkCover WA 8 Data as at 31 January 2014

9 1) Premium rates Section 1: Premium rates Summary Overview total 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 interest rates and wages. In April 2014, WorkCover WA announced a 6.7% decrease in recommended premium rates for 2014/15 in Western Australia, causing the average recommended rate to fall from 1.67% of total wages for 2013/14 to 1.56% of total wages for 2014/15. The decrease is largely driven by; wage growth in excess of wage inflation a decrease in claim numbers for 2012/13 and in the half year to 31 December 2013 an increase in the average claim size less than inflation a decrease in the expense loadings. Between 1999/00 and 2012/13, the average recommended premium rates reduced by 45.3%, from 3.09% of total wages to 1.69% of total wages. Over the same period, the average actual premium rate decreased from 2.52% of total wages to 1.50% of total wages. WorkCover WA 9 Data as at 31 January 2014

10 % Annual Change % of Payroll Section 1: Premium rates Average recommended premium rates Premium rates 2011/ / / /15 Trend^ Average recommended premium rates Average recommended premium rates (% of payroll) Annual change in average recommended premium rate (%) ^ Legend: Increasing Stable Decreasing Average recommended premium rates /93 to 2014/ Year ending 30 June Annual change in average recommended premium rates /94 to 2014/ Year ending 30 June WorkCover WA 10 Data as at 31 January 2014

11 % Annual Change % of Payroll Section 1: Premium rates Average actual premium rates Premium rates 2009/ / / /13 Trend^ Average actual premium rates Average actual premium rates (% of payroll) Annual change in average actual premium rate (%) ^ Legend: Increasing Stable Decreasing Average actual premium rates /93 to 2012/ Actual Recommended Actual Recommended Year ending 30 June Annual change in average actual premium rates /94 to 2012/ Actual Recommended Year ending 30 June WorkCover WA 11 Data as at 31 January 2014

12 2) Scheme Statistics Section 2: Scheme statistics Summary Overview Between 2009/10 and 2012/13, the number of claims increased by 2.2%. During the same period, claims with no lost time fell by 5.7% while the number of lost time claims increased by 11.9%. The proportion of long duration claims (60 days or more lost time) has steadily increased, as has the frequency rate. Total adjusted (real) claim payments, consisting of direct compensation and service payments, increased by 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 real claim payments. Except for common law payments, other forms of direct payments slowly increased between 2009/10 and 2012/13. Medical and hospital payments slighly varied over the four year period while other types of service payments have remained stable. A decrease in claim lodgement time, combined with increasing percentage of liability decisions made within the required time, indicate an overall improvement in early claims management by employers and insurers. However, it has taken longer for insurers to finalise claims. Continuance rates, which measure the number of claimants receiving weekly payments at different claim development periods (three, six and twelve months), remained stable. Of all lost time claims lodged in 2012/13, 70.2% of workers had returned to work by 31 December 2013, either in full or partial capacity. The proportion of claims finalised by way of section 92(f) deeds rose over the past four years, while the proportion of claims finalised through Memorandum of Agreements decreased. Settlement payments followed the same trend. Explanatory notes: Claims 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 (2012/13p). 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 or disease actually occurred. * See Glossary for definition and explanation WorkCover WA 12 Data as at 31 January 2014

13 Number of claims Section 2: Scheme statistics Claim numbers Scheme statistics 2009/ / / /13p Trend^ Number of claims* by days lost 0 days 20,113 20,168 20,450 18, days 4,358 4,539 4,552 4, days 5,178 5,361 5,378 5, days 3,037 3,228 3,435 3, days 1,408 1,574 1,594 1, days , days 1,891 2,124 2,530 2,666 Total 36,593 37,706 38,721 37,396 ^ Legend: Increasing Stable Decreasing * Data for claim numbers and costs is subject to revision as claims mature Number of claims lodged by lost time 45,000 40,000 36,593 37,706 38,721 37,396 35,000 30,000 Total 25,000 20,000 15,000 10,000 5, ,113 20,168 20,450 18,963 16,480 17,538 18,271 18, / / / /13p Insurer received year No lost time Lost time claims * See Glossary for definition and explanation WorkCover WA 13 Data as at 31 January 2014

14 Number of days lost % of lost time claims Claims per million hours worked Section 2: Scheme statistics Claim numbers Frequency rate* of lost time claims / / / /13p Insurer received year Grand Total 1-59 days lost 60+ days lost Percentage of lost time* claims by days lost group 90% 80% 70% 76.3% 74.9% 73.1% 69.8% 60% 50% 40% 30% 23.7% 25.1% 26.9% 30.2% 1-59 days lost 60+ days lost 20% 10% 0% 2009/ / / /13p Insurer received year Percentage of lost time claims by days lost group 2009/ /13p 1-4 days 24.8% 5-19 days 30.1% days 18.5% days 9.0% days 4.5% 180+ days 13.0% 0% 5% 10% 15% 20% 25% 30% 35% % of lost time claims * See Glossary for definition and explanation WorkCover WA 14 Data as at 31 January 2014

15 $ millions Section 2: Scheme statistics Claim payments Scheme statistics 2009/ / / /13p Trend^ Claim payments* (unadjusted) Direct compensation* ($m) Income payment Lump sum - excl common law Common law payment Service payments* ($m) Medical and hospital Allied health & vocational rehabilitation Legal & miscellaneous payment Total Claim payments* (adjusted) Direct compensation ($m) Income payment Lump sum - excl common law Common law payment Service payments ($m) Medical and hospital Allied health & vocational rehabilitation Legal & miscellaneous payment Total ^ Legend: Increasing Stable Decreasing Total claim payments (adjusted) by payment type group Total Direct compensation Service Payment / / / /13p Transaction year * See Glossary for definition and explanation WorkCover WA 15 Data as at 31 January 2014

16 % of claim payments % of claim payments % of claim payments Section 2: Scheme statistics Claim payments Percentage of claim payments by payment type group 70% 66% 65% 64% 66% 60% 50% 40% 30% 20% 10% 0% 34% 35% 36% 34% 2009/ / / /13p Transaction year Direct compensation Service payment Percentage of claim payments by payment type - Direct compensation 70% 60% 50% 40% 52% 56% 57% 59% Income payment 30% 20% 10% 27% 21% 26% 18% 28% 29% 15% 11% Lump sum - excl common law Common law payment 0% 2009/ / / /13p Transaction year Percentage of claim payments by payment type - Service payments 50% 45% 40% 44% 42% 43% 42% 35% 30% 25% 20% 15% 10% 31% 30% 31% 31% 26% 26% 26% 27% Medical and hospital Allied health & vocational rehabilitation Legal & miscellaneous payment 5% 0% 2009/ / / /13p Transaction year WorkCover WA 16 Data as at 31 January 2014

17 $ millions Section 2: Scheme statistics Claim costs Scheme statistics 2009/ / / /13p Trend^ Claim costs* Claim costs by days lost ($m) 1-4 days days days days days days Total Average claim costs by days lost ($) 1-4 days 2,108 1,934 2,015 2, days 6,006 6,295 6,404 6, days 21,046 21,951 21,092 22, days 45,468 46,813 47,463 49, days 76,846 75,685 77,770 83, days 187, , , ,250 Total 34,567 37,794 40,683 39,319 ^ Legend: Increasing Stable Decreasing * Data for claim numbers and costs is subject to revision as claims mature Costs of lost time claims by days lost Total days lost days lost / / / /13p Insurer received year WorkCover WA 17 Data as at 31 January 2014

18 Number of days lost % of claims / costs % of claim costs Section 2: Scheme statistics Claim costs Percentage of claim costs by days lost 90% 80% 81.7% 82.9% 84.4% 82.9% 70% 60% 50% 40% 30% 20% 10% 0% 18.3% 17.1% 15.6% 17.1% 2009/ / / /13p Insurer received year 1-59 days lost 60+ days lost Percentage of claims and costs by days lost 2009/ /13p 90% 80% 70% 73.4% 83.1% 60% 50% 40% Claims 30% 26.6% Costs 20% 16.9% 10% 0% < 60 days >= 60 days Number of days lost Percentage of claims and costs by days lost 2009/ /13p 1-4 days 1.4% 24.8% 5-19 days 5.0% 30.1% days 10.5% 18.5% Claims days 9.0% 11.2% Costs days 4.5% 9.3% 180+ days 13.0% 62.6% 0% 10% 20% 30% 40% 50% 60% 70% % of claims / costs WorkCover WA 18 Data as at 31 January 2014

19 Number of days Section 2: Scheme statistics Claim management Scheme statistics 2009/ / / /13p Trend^ Claim management Average time between injury and lodgement of claim with employer (days) Disease income claims Injury income claims All income claims Average time between employer receiving claim and lodging with insurer (days) All income claims Percentage of liability confirmations* made within the required time - pending claims excluded All income claims Average time between lodgement of claim with insurer and finalisation of claim (months) All income claims ^ Legend: Increasing Stable Decreasing Average time between injury and lodgement of claim with employer (days) Disease Injury All / / / /13p Insurer received year * See Glossary for definition and further explanation WorkCover WA 19 Data as at 31 January 2014

20 Number of months % of income claims Number of days Section 2: Scheme statistics Claim management Average time between employer receiving claim and lodging with insurer (days) / / / /13p Insurer received year Percentage of liability decisions* made within the required time - pending claims excluded / / / /13p Insurer received year Average time between lodgement of claim with insurer and finalisation of claim (months) / / / /13p Finalisation year * See Glossary for definition and explanation WorkCover WA 20 Data as at 31 January 2014

21 Continuance rate % Section 2: Scheme statistics Claim management Scheme statistics 2009/ / / /13p Trend^ Continuance rates* Number of claims receiving weekly payments one month after claim lodgement 5,455 6,139 6,600 6,643 Number of claims receiving weekly payments three months after claim lodgement 3,538 4,076 4,287 4,367 Number of claims receiving weekly payments six months after claim lodgement 2,556 2,921 3,136 3,038 Number of claims receiving weekly payments twelve months after claim lodgement 1,614 1,801 1,982 n/a Three-month continuance rate* 64.9% 66.4% 65.0% 65.7% Six-month continuance rate* 46.9% 47.6% 47.5% 45.7% Twelve-month continuance rate* 29.6% 29.3% 30.0% n/a ^ Legend: Increasing Stable Decreasing Continuance rates 2009/ /13p 80% 70% 64.9% 66.4% 65.0% 65.7% 60% 50% 46.9% 47.6% 47.5% 45.7% Three-Month Continuance Rate 40% 30% 20% 29.6% 29.3% 30.0% Six-Month Continuance Rate Twelve-Month Continuance Rate 10% 0% 2009/ / / /13 Insurer received year * See Glossary for definition and further explanation WorkCover WA 21 Data as at 31 January 2014

22 Section 2: Scheme statistics Claim management Scheme statistics Claim lodgement year 2010/ / /13p 2.4.7a Work Status* (as at 31 January 2014) All claims (no lost time and lost time) Maintained at work 51.1% 50.3% 48.1% Returned to work (full or partial hours) 34.6% 34.9% 34.6% Not working 13.0% 13.5% 15.5% Return to work status unknown 1.4% 1.4% 1.7% 2.4.7b Return to Work Status* (as at 31 January 2014) Lost time claims Returned to work (full or partial hours) 74.3% 73.8% 70.2% Not working 23.8% 24.5% 27.8% Return to work status unknown 1.8% 1.7% 2.0% Work Status - all claims lodged 2012/13p Maintained at work 48.1% Return to work - full hours 30.9% Return to work - partial hours 3.7% Not working - injury related 14.7% Not working - other reason Return to work status unknown 0.9% 1.7% 0% 10% 20% 30% 40% 50% 60% % of claims Return to Work Status - lost time claims lodged 2012/13p Return to work - full hours 62.6% Return to work - partial hours 7.6% Not working - injury related 26.6% Not working - other reason 1.3% Return to work status unknown 2.0% 0% 10% 20% 30% 40% 50% 60% 70% % of claims * See Glossary for definition and further explanation WorkCover WA 22 Data as at 31 January 2014

23 Disputation rate Number of disputes Section 2: Scheme statistics Disputes Scheme statistics 2009/ / /12* 2012/13p Trend^ Disputes Number of disputes lodged 1,472 1,864 1,612 n/a* Disputation rate 2.5% 3.1% 2.5% n/a* ^ Legend: Increasing Stable Decreasing * Data for 2011/12 is excluded due to the legislative change of the conciliation and arbitration functions on 1 December Given the vast differences in 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 Number of disputes lodged 2,500 2,000 1,500 1,472 1,864 1,612 1, / / /12* 2012/13p Dispute application year Disputation rate 4.0% 3.5% 3.0% 2.5% 2.5% 3.1% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2009/ / /12* 2012/13p Financial year WorkCover WA 23 Data as at 31 January 2014

24 $ millions Settlement rate Section 2: Scheme statistics Settlements Scheme statistics 2009/ / / /13 Trend^ Settlements Settlements as a proportion of finalised claims Memorandum of Agreements 9.8% 9.3% 9.5% 9.5% Section 92(f) deeds 3.0% 3.1% 3.6% 4.1% Total 12.7% 12.4% 13.1% 13.6% Settlement payments ($m) Memorandum of Agreements Section 92(f) deeds Total ^ Legend: Increasing Stable Decreasing Settlements as a proportion of finalised claims 12.0% 10.0% 9.8% 9.3% 9.5% 9.5% 8.0% 6.0% 4.0% 3.0% 3.1% 3.6% 4.1% Memorandum of Agreements Section 92(f) deeds 2.0% 0.0% 2009/ / / /13 Finalisation year Settlement payments Memorandum of Agreements Section 92(f) deeds / / / /13 Settlement recording year WorkCover WA 24 Data as at 31 January 2014

25 3) Claimant characteristics Section 3: Claimant characteristics Summary Overview Similar to previous years, males have higher number of claims and claim frequency rate than females. The frequency rate for male workers slightly decreased after peaking at 10.1 claims per million hours worked in 2010/11. Frequency rate for female workers decreased by approximately 4% over the past four years. Between 2009/10 and 2012/13, workers in the and year age groups had the highest frequency rate of lost time claims. Statistics also show as workers age, the duration of claims tend to be longer. The risks associated with different industries are evident in the number of claims and frequency rates. Over the past four years, the highest number of claims and proportion of lost time claims were associated with manual labour and high risk industries such as Construction (15.2%), Health care and social assistance (13.9%), Manufacturing (13.7%) and Mining (8.7%). Technicians and trades workers, labourers and machinery operator and drivers accounted for 66.8% of lost time claims in 2012/13. In contrast, white collar workers occupied the lowest proportion of claims, for example sales staff (4.5%), clerical and administrative workers (4.0%) and managers (2.5%). Explanatory notes: Claims 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 (2012/13p). The 'p' indicates preliminary data for this year. Industry Industry classifications are based on the Australian and New Zealand Standard Industrial Classification (ANZSIC) which is 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) which has been used from 1 July 2009 to code occupations from claims data. WorkCover WA 25 Data as at 31 January 2014

26 Number of lost time claims Section 3: Claimant characteristics Gender Claimant characteristics 2009/ / / /13p Trend^ Number of lost time claims by claimant gender Male 1-4 days 2,892 3,019 3,111 2, days 3,545 3,748 3,775 3, days 2,158 2,286 2,430 2, days 953 1,082 1,077 1, days days 1,085 1,277 1,555 1,754 Total 11,026 11,854 12,444 12,430 Female 1-4 days 1,466 1,520 1,441 1, days 1,633 1,613 1,603 1, days , days days days Total 5,454 5,684 5,827 6,003 ^ Legend: Increasing Stable Decreasing Number of lost time claims by claimant gender 14,000 12,000 11,026 11,854 12,444 12,430 10,000 8,000 6,000 4,000 5,454 5,684 5,827 6,003 Male Female 2, / / / /13p Insurer received year WorkCover WA 26 Data as at 31 January 2014

27 % of lost time claims Frequency rate Section 3: Claimant characteristics Gender Frequency of lost time claims by claimant gender Male 4.0 Female / / / /13p Insurer received year Proportion of lost time claims by gender 2009/ /13p 80% 70% 60% 69% 63% 50% 40% 30% 31% 37% Male Female 20% 10% 0% 1-59 days lost 60+ days lost Number of days lost WorkCover WA 27 Data as at 31 January 2014

28 Number of lost time claims Section 3: Claimant characteristics Age Claimant characteristics 2009/ / / /13p Trend^ Number of lost time claims by age group years 878 1,005 1, years 1,780 1,938 1,946 2, years 3,261 3,538 3,799 3, years 3,771 3,934 4,118 4, years 4,156 4,328 4,369 4, years 1,479 1,513 1,642 1, years ,029 1, years Frequency rate by age group years years years years years years years years ^ Legend: Increasing Stable Decreasing Total number of lost time claims by age group 2009/ /13p 20,000 18,000 16,000 14,000 14,559 15,833 17,234 12,000 10,000 8,000 6,000 4,000 3,819 7,676 6,278 4,073 2,000 1, Age group WorkCover WA 28 Data as at 31 January 2014

29 % of lost time claims Frequency rate Section 3: Claimant characteristics Age Frequency rate of lost time claims by age group 2009/ /13p Age group Percentage of lost time claims by age group 2009/ /13p 100% 90% 80% 70% 89% 84% 78% 71% 68% 67% 66% 65% 60% 50% 40% 30% 20% 10% 11% 16% 22% 29% 32% 33% 34% 35% 0% Age group 1-59 days lost 60+ days lost WorkCover WA 29 Data as at 31 January 2014

30 Section 3: Claimant characteristics Industry Claimant characteristics 2009/ / / /13p Number of lost time claims by industry Manufacturing 2,473 2,618 2,658 2,528 Construction 2,088 2,572 2,746 2,802 Health care and social assistance 2,478 2,484 2,459 2,554 Retail trade 1,342 1,469 1,295 1,353 Mining 1,017 1,159 1,409 1,596 Education and training 1,205 1,331 1,273 1,328 Transport, postal and warehousing 1,128 1,140 1,251 1,206 Accommodation and food services Public administration and safety Wholesale trade Agriculture, forestry and fishing Other services Arts and recreation services Administrative and support services Professional, scientific and technical services Rental, hiring and real estate services Electricity, gas, water and waste services Financial and insurance services Information media and telecommunications Unknown Industry Grand Total 16,480 17,538 18,271 18, Percentage of lost time claims by industry 2012/13p Construction Health care and social assistance Manufacturing Mining Retail trade Education and training Transport, postal and warehousing Accommodation and food services Public administration and safety Wholesale trade Agriculture, forestry and fishing Other services Arts and recreation services Administrative and support services Professional, scientific and technical services Rental, hiring and real estate services Electricity, gas, water and waste services Financial and insurance services Information media and telecommunications 4.8% 4.2% 4.0% 3.2% 2.5% 2.3% 1.8% 1.6% 1.2% 1.2% 0.3% 0.3% 8.7% 7.3% 7.2% 6.5% 13.9% 13.7% 15.2% 0% 2% 4% 6% 8% 10% 12% 14% 16% % of lost time claims WorkCover WA 30 Data as at 31 January 2014

31 Section 3: Claimant characteristics Industry Frequency rate of lost time claims by industry 2012/13p Manufacturing 15.1 Arts and recreation services Health care and social assistance Construction Transport, postal and warehousing Agriculture, forestry and fishing 11.6 Wholesale trade 10.1 Education and training Accommodation and food services All industry average Public administration and safety Retail trade Mining Rental, hiring and real estate services Other services Electricity, gas, water and waste services Administrative and support services 3.2 Information media and telecommunications Professional, scientific and technical services Financial and insurance services Frequency rate WorkCover WA 31 Data as at 31 January 2014

32 Section 3: Claimant characteristics Occupation Claimant characteristics 2009/ / / /13p Number of lost time claims by occupation Technicians and trades workers 4,132 4,627 4,910 5,013 Labourers 3,867 4,161 4,177 4,089 Machinery operators and drivers 2,624 2,755 3,229 3,199 Community and personal service workers 2,626 2,607 2,556 2,657 Professionals 1,340 1,369 1,381 1,438 Sales workers Clerical and administrative workers Managers Unknown Occupation Total 16,480 17,538 18,271 18, Percentage of lost time claims by occupation 2012/13p Technicians and trades workers 27.2% Labourers 22.2% Machinery operators and drivers 17.4% Community and personal service workers 14.4% Professionals 7.8% Sales workers 4.5% Clerical and administrative workers 4.0% Managers 2.5% Unknown Occupation 0.1% 0% 5% 10% 15% 20% 25% 30% % of lost time claims WorkCover WA 32 Data as at 31 January 2014

33 4) Injury/disease attributes Section 4: Injury/disease attributes Summary M Overview On average, 91.5% of lost time claims resulted from work-related injuries, with the remaining 8.5% arose out of work-related diseases. Musculoskeletal conditions are the most common causes for injuries/diseases, accounting for 58.3% of all lost time claims. Predominant causes of work-related injuries or diseases are due to: body stressing (38.8%) falls, trips and slips (23.3%) being hit by moving objects (20.3%). Injuries predominantly occured on the upper limbs (36.0%), followed by lower limbs (23.3%) and trunk of the body (22.2%). years. Over 70% of work-related injuries and diseases resulted in temporary incapacity for claimants. Injuries resulting in permanent incapacity (total or partial) steadily decreased over the past four years. Explanatory notes: Claims 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. Injury/disease classifications 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: Nature of injury/disease Bodily location of injury/disease Mechanism of injury/disease 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 (2012/13p). The 'p' indicates preliminary data for this year. WorkCover WA 33 Data as at 31 January 2014

34 Number of work-related fatalities Section 4: Injury/disease attributes Level of incapacity Injury attributes 2008/ / / /12 Trend^ Number of lost time claims by level of incapacity* Temporary Incapacity 13,847 12,835 13,670 14,595 Permanent incapacity - Partial 3,450 3,382 3,579 3,370 Permanent incapacity - Total No incapacity at any time Total 17,546 16,479 17,536 18,269 ^ Legend: Increasing Stable Decreasing * 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 Percentage of lost time claims by level of incapacity* 2008/ /12 Temporary Incapacity 78.7% Permanent incapacity - Partial 19.7% Permanent incapacity - Total 1.4% No incapacity at any time 0.2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% % of lost time claims Injury attributes 2009/ / / /13 Trend^ Number of work-related fatalities Work-related fatalities Number of work-related fatalities 2009/ /13p / / / /13p Insurer received year WorkCover WA 34 Data as at 31 January 2014

35 Section 4: Injury/disease attributes Nature Injury attributes 2009/ / / /13p Number of lost time claims by nature of injury or disease Lost time injury 15,045 16,053 16,824 16,862 Traumatic joint/ligament and muscle/tendon injury 8,769 9,541 9,977 10,156 Wounds, lacerations, amputations and internal organ damage 3,806 3,924 3,958 3,714 Fractures 1,520 1,567 1,781 1,952 Other injuries Burn Intracranial injuries Lost time disease 1,435 1,485 1,447 1,571 Musculoskeletal and connective tissue diseases Mental diseases Digestive system diseases Nervous system and sense organ diseases Skin and subcutaneous tissue diseases Infectious and parasitic diseases Other diseases Respiratory system diseases Circulatory system diseases Percentage of lost time claims by nature of injury or disease 2012/13p Traumatic joint/ligament and muscle/tendon injury Wounds, lacerations, amputations and internal organ damage Fractures Musculoskeletal and connective tissue diseases Mental 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 Circulatory system diseases Respiratory system diseases 3.2% 2.8% 2.7% 2.3% 1.2% 0.7% 0.7% 0.3% 0.1% 0.1% 0.1% 0.1% 10.6% 20.1% 55.1% 0% 10% 20% 30% 40% 50% 60% % of lost time claims WorkCover WA 35 Data as at 31 January 2014

36 Section 4: Injury/disease attributes Bodily location Injury attributes 2009/ / / /13p Number of lost time claims by bodily location of injury or disease Upper limbs 5,789 6,226 6,579 6,629 Trunk 4,015 4,125 4,239 4,094 Lower limbs 3,643 3,857 4,129 4,294 Multiple/unspecified locations 1,248 1,389 1,448 1,495 Head 1,022 1,053 1,040 1,010 Non physical locations Neck Systemic locations Total 16,480 17,538 18,271 18, Percentage of lost time claims by bodily location of injury or disease 2012/13p Upper limbs 36.0% Lower limbs 23.3% Trunk 22.2% Multiple/unspecified locations 8.1% Head 5.5% Non physical locations 2.8% Neck 1.6% Systemic locations 0.6% 0% 5% 10% 15% 20% 25% 30% 35% 40% % of lost time claims WorkCover WA 36 Data as at 31 January 2014

37 Section 4: Injury/disease attributes Mechanism Injury attributes 2009/ / / /13p Number of lost time claims by mechansim of injury or disease Body stressing 6,462 6,824 7,093 7,144 Falls trips and slips of a person 3,673 3,963 4,228 4,287 Being hit by moving objects 3,410 3,725 3,854 3,733 Hitting objects with a part of the body 1,387 1,390 1,370 1,467 Other and unspecified mechanisms of incident Mental stress Heat electricity and other environmental factors Chemicals and other substances Biological factors Sound and pressure Total 16,480 17,538 18,271 18, Percentage of lost time claims by mechanism of injury or disease 2012/13p Body stressing 38.8% Falls trips and slips of a person Being hit by moving objects 20.3% 23.3% Hitting objects with a part of the body 8.0% Other and unspecified mechanisms of incident Mental stress Heat electricity and other environmental factors Chemicals and other substances Biological factors Sound and pressure 2.8% 2.8% 2.1% 1.6% 0.4% 0.1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% % of lost time claims WorkCover WA 37 Data as at 31 January 2014

38 Section 4: Injury/disease attributes Agency Injury attributes 2009/ / / /13p Number of lost time claims by agency of injury or disease Non powered handtools appliances and equipment 3,722 4,038 4,241 4,225 Environmental agencies 3,456 3,828 4,064 4,197 Materials and substances 2,817 3,130 3,179 3,040 Mobile plant and transport 1,605 1,554 1,785 1,800 Animal human and biological agencies 1,697 1,650 1,626 1,683 Other and unspecified agencies 1,235 1,290 1,282 1,419 Powered equipment tools and appliances ,022 Machinery and mainly fixed plant Chemicals and chemical products Total 16,480 17,538 18,271 18, Percentage of lost time claims by agency of injury or disease 2012/13p Non powered handtools appliances and equipment Environmental agencies 22.9% 22.8% Materials and substances 16.5% Mobile plant and transport Animal human and biological agencies Other and unspecified agencies 7.7% 9.8% 9.1% Powered equipment tools and appliances Machinery and mainly fixed plant 4.5% 5.5% Chemicals and chemical products 1.2% 0% 5% 10% 15% 20% 25% % of lost time claims WorkCover WA 38 Data as at 31 January 2014

39 5) Sprains and strains claims Section 5: Sprains and strains claims Summary Overview Sprains and strains are the most common work-related injury, responsible for over 50% of all lost time claims in the Western Australia workers' compensation scheme. These type of injuries and diseases often involve slow recovery and are susceptible to recurrence, resulting in high economic impact on the workers' compensation scheme. Although the incidence and frequency rates have improved over the past three years, sprains and strains continue to incur significant costs. In 2012/13, payments associated with sprains and strains claims accounted for more than 50% of Western Australia's total lost time workers' compensation claims payments. This section provides information regarding the extent and characteristics of sprains and strains related lost time claims. This information may assist in: understanding the key trends in relation to sprains and strains claims; identifying industries and groups of workers that may be at high risk of sprains and strains injuries and diseases; and forming incidence prevention and injury management strategies. Profile of sprains and strains lost time claims 2012/13 All lost-time claims Sprains and strains lost-time claims Number of claims 18,433 9,878 (53.6%) Total claim cost $724.8m $418.0m (57.7%) Total days lost 1,410,849 days 844,149 days (59.8%) Average claim cost $39,319 $42,314 Average days lost 77 days 85 days WorkCover WA 39 Data as at 31 January 2013

40 Incidence rate Frequency rate Section 5: Sprains and strains claims Claim numbers and costs 2009/ / / /13p Grand Total Number of sprains and strains lost time claims Sprains and strains lost time claims 8,578 9,349 9,728 9,878 37,533 All lost time claims 16,480 17,538 18,271 18,433 70,722 Percentage of sprains and strains claims 52.1% 53.3% 53.2% 53.6% 53.1% On average, over 50% of all workers' compensation lost time claims were associated with sprains and strains. The number of claims steadily increased between 2009/10 and 2012/ / / / /13p / / / /13p Insurer received year Insurer received year Between 2010/11 and 2012/13, the incidence rate for sprains and strains claims reduced from 0.85 to 0.81 claims per hundred employees. During the same period the frequency rate reduced from 4.94 claims per million hours worked in 2010/11 to 4.65 claims per million hours worked in 2012/ / / / /13p Grand Total Average days lost and claim cost of sprains and strains claims Average days lost Average claim costs $ 37,349 40,546 44,019 42,314 41,181 $41,181 $38, days 76 days Sprains and strains claims All lost time claims Average claim cost Average days lost It should be noted that the recent year figures are subject to significant development. Between 2009/10 and 2012/13, the average claim cost for sprains and strains claims was $41,181, which is 7.8% above the overall average claim cost of $38,186. Sprains and strains claims incurred an average 86 days of lost time in comparison with an average of 76 days for all lost time claims. WorkCover WA 40 Data as at 31 January 2013

41 Section 5: Sprains and strains claims Claim numbers and bodily locations of injury 2009/ / / /13p Grand Total Number of claims based on bodily locations Trunk 3,080 3,270 3,304 3,211 12,865 Upper limbs 2,342 2,556 2,741 2,747 10,386 Lower limbs 2,145 2,347 2,463 2,641 9,596 Multiple locations ,026 3,727 Neck Head Total 8,578 9,349 9,728 9,878 37,533 Common sprains and strains claims based on bodily locations between 2009/10 and 2012/13 The picture below illustrates the bodily locations that are most commonly affected by sprains and strains, for claims lodged between 2009/10 and 2012/13. The lower or upper back is the predominant area for sprains and strains claims (31.7%), followed by shoulder (13.7%) and knee (12.6%). In some circumstances, sprains and strains can be serious, involving multiple parts of the body (9.9% of all sprains and strains claims). Number of sprains and strains claims by mechanism of injury or disease /13 WorkCover WA 41 Data as at 31 January 2013

42 Section 5: Sprains and strains claims Claim payments and mechanism of injury 2009/ / / /13p Grand Total Claim payments ($m) - sprains and strains claims (adjusted) Income payment Lump sum - excl common law Common law payment Medical and hospital Allied health & vocational rehabilitation Legal & miscellaneous payment Total Between 2009/10 and 2012/13, nearly $1.6 billion was paid for sprains and strains claims, with an average of $398 million per year. Over the past four years, total payments for sprains and strains claims accounted for 51.9% of all lost time claim payments. Income payment 42.9% Lump sum - excl common law 17.9% Common law payment 6.8% Medical and hospital Allied health & vocational rehabilitation Legal & miscellaneous payment 10.3% 9.1% 13.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% % of claims payments Between 2009/10 and 2012/13, almost half (42.9%) of the costs for sprains and strains claims were income payments, while medical and allied health services payments accounted for 23.3% of the total payments. Number of sprains and strains claims by mechanism of injury or disease /13p Mechanism of injury/disease Body stressing 6,177 - Falls, trips and slips of a person 2,584 Being hit by moving objects 6% Other factors 5% Being hit by moving objects Other factors 490 In 2012/13, 63% of sprains and strains claims were due to body stressing, followed by falls, trips and slips (26%) and workers being hit by moving objects (6%). The remaining claims were caused by other factors, such as workers hitting objects with a part of the body. Falls, trips and slips of a person 26% Body stressing 63% WorkCover WA 42 Data as at 31 January 2013

43 Section 5: Sprains and strains claims Claimant characteristics Frequency rate for sprains and strains claims by gender 2009/ / / /13p Female Male Frequency rate for sprains and strains claims by gender and age /13p Female Male Statistics show that male workers tend to have a higher frequency rate for sprains and strains claims. In 2012/13, the frequency rate for male workers was 4.78 claims per million hours worked compared to 4.44 claims per million hours worked for female workers. For both male and female workers, the frequency rate increases from age 25 until the early 60s Age group Proportion of sprains and strains claims by industry and occupation /13p Health care and social assistance Construction Manufacturing Mining 17.6% 14.4% 10.9% 9.5% 0% 10% 20% 30% % of claims In 2012/13, Health care and social assistance industry had the highest risk for sprains and strains incidences, accounting for 17.6% of all sprains and strains lost time claims. Other industries with high numbers of sprains and strains claims include Construction (14.4%), Manufacturing (10.9%) and Mining (9.5%). In 2012/13, technicians and trades workers accounted for 22.5% of sprains and strains claims, followed by labourers (20.9%), machinery operators and drivers (19.9%) and community and personal service workers (17.2%). Technicians and trades workers Labourers Machinery operators and drivers Community and personal service workers 22.5% 20.9% 19.9% 17.2% 0% 10% 20% 30% % of claims In summary, personal carers and assistants have the highest proportion (7.0%) of sprains and strains claims, followed by truck drivers (5.7%), construction and mining labourers (4.7%) and stationary plant operators (4.2%). WorkCover WA 43 Data as at 31 January 2013

44 TERM Accident year Act Age Agency of occurrence DEFINITION / EXPLANATION OF TERM Section 6: Glossary Accident year refers to the financial year in which the work-related injury or 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 Based on chronological age (in years) at the date of injury or 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 or 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). Average cost Bodily location Body stressing Claimant Claim costs Claims data The average cost represents 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 or 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. Represents 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. 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. Claim management 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. Claim payments 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). WorkCover WA 44 Data as at 31 January 2013

45 TERM Claim payments continued DEFINITION / EXPLANATION OF TERM Section 6: Glossary 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. Service payments: 1. medical and hospital payments: - medical practitioner and specialist payments (consultation and treatment expenses rendered by general practitioners and medical specialists) - hospital expenses (hospital accommodation and hospital treatment) 2. allied health and vocational rehabilitation payments: - 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) - 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) 3. legal and miscellaneous payments - 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). Common law payment Continuance rate Days lost Dispute Represents 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. This indicator 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. Is defined as 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. This is in relation to 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 WorkCover WA 45 Data as at 31 January 2013

46 TERM Disputation rate Disease Extent of incapacity Frequency rate Incidence rate Industry DEFINITION / EXPLANATION OF TERM Section 6: Glossary This is defined as 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). This refers to 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. Frequency rate is 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. 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 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). Journey claims 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. Liability confirmation period 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. Lodgement year The financial year in which the claim was lodged with the insurer. Long duration claims Workers' compensation claims for which the injury or disease results in an absence from work of at least 60 days or shifts. Lost time claims Mechanism of injury or disease Nature of injury or disease Lost time claims are claims for which the injury or disease results in an absence from work of at least one day or shift. The mechanism of injury or 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) WorkCover WA 46 Data as at 31 January 2013

47 TERM Occupation Pending claims Work status Worker DEFINITION / EXPLANATION OF TERM 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. 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. WorkCover WA 47 Data as at 31 January 2013

48 Section 7: References Australian Bureau of Statistics, Australian and New Zealand Standard Industrial Classification 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 Australian Bureau of Statistics, Australian and New Zealand Standard Classification of Occupations. Canberra: Commonwealth of Australia 2006 WorkCover WA 48 Data as at 31 January 2013

49 Section 8: Disclaimer 1 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. 2 3 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. 4 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. 5 Information concerning the accuracy and appropriate uses of the data or concerning other workers compensation data may be obtained by contacting WorkCover WA. WorkCover WA 49 Data as at 31 January 2013