(1) A workers
compensation policy is considered to lapse at the end of the period of
insurance under the policy if the policy is not renewed within that period or
within any period of grace provided for by the policy.
(2) An insurer must
notify the CEO in the approved form of the lapsing of a workers compensation
policy issued by the insurer.
(3) The insurer under
a workers compensation policy that has lapsed remains liable to indemnify the
employer in respect of a liability incurred after the policy lapsed (as if the
liability had been incurred during the period of insurance of the policy) but
only if the liability is incurred no later than 7 days after WorkCover WA
is notified of the policy lapsing as required by subsection (2).
(4) The insurer under
a workers compensation policy that has lapsed does not remain liable under
this section to indemnify the employer in respect of a liability if the
employer has insurance for the liability under another workers compensation
policy.
(5) If an insurer
refuses to indemnify an employer in respect of a liability in respect of which
the insurer remains liable under this section, the insurer commits an offence.
Penalty for this subsection: a fine of
$15 000.
(6) Conviction of an
insurer for an offence under subsection (5) does not affect the
insurer’s liability under this section.