Western Australian Numbered Acts Western Australian Numbered Acts (1) If the employer
insured under a workers compensation policy becomes incapable of being
proceeded against —
(a) the
insurer has, to the extent of its liability under the policy, the same
liability to a worker of the employer and the same rights and remedies in
respect of that liability that the employer otherwise would have had to that
worker and in respect of that liability; and
(b) a
worker of the employer may proceed against and recover from the insurer on the
basis of the liability that the insurer has under paragraph (a).
(2) For the purposes
of this section, an employer becomes incapable of being proceeded against if
the employer —
(a) in
the case of a corporation — has commenced to be, or has been, wound
up or has ceased to exist; or
(b)
dies, cannot be found or no longer resides in Australia; or
(c) has
ceased to carry on the business, or business of the kind, to which the policy
related.
(3) If, under
subsection (1), the liability of the insurer of an employer is less than
that which the liability of the employer to the worker would have been, the
worker may proceed for the balance —
(a)
against the employer; or
(b) in
the bankruptcy or liquidation of the employer; or
(c)
against the personal representative of the employer.
(4) The rights and
remedies of a worker against an insurer under this section are not
limited by any agreement or arrangement between the employer and the insurer
before the employer became incapable of being proceeded against.
Note for this Division:
Self-insurance by an
employer is an alternative to the employer obtaining a workers compensation
policy from a licensed insurer for the employer’s workers compensation
and damages liabilities to its workers. To be a self-insurer, an employer must
hold a self-insurer licence or be a related entity of the holder of a
self-insurer licence that covers the related entity.