Western Australian Numbered Acts Western Australian Numbered Acts (1) The regulations
may prescribe circumstances (the permitted circumstances ) in which a licensed
insurer is permitted to refuse to indemnify an employer against liability to
pay compensation or damages in respect of an injury to a worker for which the
employer is liable.
(2) A licensed insurer
who insures an employer under a workers compensation policy against the
employer’s liability to pay compensation or damages in respect of an
injury to a worker for which the employer is liable —
(a) may
in the permitted circumstances refuse to indemnify the employer against that
liability; and
(b)
cannot refuse in any other circumstances to indemnify the employer against
that liability despite any term or condition of a workers compensation policy.
(3) A licensed insurer
who refuses to indemnify an employer against liability to pay compensation or
damages in respect of an injury to a worker for which the employer is liable
must give notice of refusal of indemnity in the approved form to the worker,
the employer and WorkCover WA within 5 days after the decision to refuse
indemnity is made by the insurer.
Penalty for this subsection: a fine of
$5 000.
(4) If notice of
refusal of indemnity is given to the employer within the period within which
the insurer is required under section 28 or 29 to give a liability
decision notice for the claim (the liability decision period ) —
(a) the
insurer’s obligations in respect of the claim under Part 2
Division 2 cease to apply; and
(b) the
employer is required to deal with the claim as if the employer were a
self-insurer (as required by section 31 because the employer is
uninsured) and as if the claim had been given to the employer on the day that
the employer received the notice of refusal of indemnity.
Note for this subsection:
Sections 28
and 29 apply to the employer when dealing with the claim as a
self-insurer as if the claim had not been given to the employer until the
employer was given the notice of refusal of indemnity.
(5) If notice of
refusal of indemnity is given to the employer (whether or not within the
liability decision period) the following provisions apply to a dispute about
the liability of the insurer to indemnify the employer —
(a) the
dispute is not a dispute for the purposes of Part 6 and proceedings for
the determination of the dispute cannot be brought under that Part;
(b) the
dispute must, on application to the District Court by the employer, be
determined by the District Court.
(6)
Subsection (5) does not prevent proceedings under Part 6 for the
determination of a dispute about whether the employer is liable for
compensation with which the notice of refusal of indemnity is concerned.