Help me understand my premium and policy

What you need to know to help you better understand your premium and your policy.

What does my policy cover?

A workers’ compensation policy provides cover for your workers in the event of a work-related injury or illness. This article outlines what is covered by workers insurance, your obligations and rights, and other information about policies including workers compensation legislation.

What a workers insurance policy covers

Find out about WICs and premium rates

Read more

How is my premium calculated?

Premiums are based on your industry, how much you pay in annual wages and a range of other factors. This article explains how premiums are calculated, including information about the role of industry classifications and how claims performance can impact the premium of medium and larger employers.

How we calculate your premium

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How can I lower my premium?

icare offers a range of incentives, discounts and other adjustments to help NSW business lower the costs of their workers insurance. This article lists the incentives available to employers to report incidents early, introduce safety initiatives and support injured workers return to work.

Ways to lower your workers insurance premium

Understanding your premium webinar – update

In June, 2020 icare ran a webinar for employers. The webinar included a premium calculation scenario over two slides to illustrate the return to work incentive in practice. These slides were provided as follows.

Doughnuts Pty Ltd – premium after a claim

This image shows an example of a company called Doughnuts Pty Ltd - premium after a claim. Included in premium $8000 wages, 15% return to work incentive applied $6800 for returning before 13 weeks. Not included in premium $2500 medical and $5000 rehabilitation. Premium charges is $70,355 (including charges and discounts) If payment was made in full before the due date, a further discount of $2110.65 is applicable.

Doughnuts Pty Ltd – premium calculation for the next year

The next year, Homer broke his leg when he also slipped on some sprinkles and was off work for 28 weeks. Claims costs incurred = $48,640 (Homer’s wage paid for 28 weeks, less a 5% discount)

This image shows Doughnuts Pty Ltd premium calculation for the next year. The next year, Homer broke his leg when he also slipped on some sprinkles and was off work for 28 weeks. Claims costs incurred = $48,640 (Homer’s wage paid for 28 weeks, less a 5% discount). Included in premium $51,200 wages, 5% RTWI applied $48,640 for returning before 52 weeks but after 26 weeks. Not included in Premium $7500 medical and $5000 rehabilitation. Premium Charged = $141,815 which is $62,415 above APP (including charges and discounts)
Although the premium presented was correct in reflecting the total premium without premium capping, it would have been more complete to advise that the example provided would have been entitled to a 30 per cent premium rate cap in line with the Market Practice and Premium Guidelines. The capped premium would have been $92,545.

Declaration of actual wages

Employers are required to lodge a Declaration of Actual Wages form at the end of the policy period. This is a declaration of how much you have paid your workers in wages during that period.

Learn more about declaring wages

Your policy renewal explained

Watch this video to know what to expect from your icare workers insurance policy renewal.

Listen to the audio description
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