The NSW government has however argued that rorting of the worker’s compensation scheme is a significant cause of the problems plaguing the organisation. A report released by the government included a recommendation for slashing benefits to injured workers in order to reduce the deficit.
Deputy Premier, Andrew Stoner made recent statements calling for the need of WorkCover to be a scheme that is without any loopholes, thus preventing rorts while remaining affordable.
Stoner stated that some cases involve part-time workers who have been receiving worker’s compensation for many years despite questionable claims.
WorkCover’s annual report for 2010-2011 revealed that nine people were prosecuted for defrauding the system.
Michael Playford of PricewaterhouseCoopers actuary, stated that an increase in damages claims can be attributed to an emerging “lump sum culture”.However an evaluation from the very same actuary revealed that 50% of the deficit is due to “external influences impacting investment returns achieved”.
The other half of the deficit is attributed to a deterioration in claims management over the past four years. Finance Minister Greg Pearce believes that the investment returns are probably set to further deteriorate. He added that the efforts to improve systems to compel people to return to work earlier, would require a change in benefits.
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