Statute Details
- Title: Work Injury Compensation (Exemption from Section 30) Order 2020
- Full Title: N/A
- Act Code: WICA2019-S733-2020
- Type: Subsidiary Legislation (sl)
- Commencement Date: 1 September 2020
- Parts: N/A
- Key Sections: Section 2: Definitions of "deemed approved policy", "interim policy" and "licensed insurer"
- Related Legislation: Work Injury Compensation Act 2019
What Is This Legislation About?
The Work Injury Compensation (Exemption from Section 30) Order 2020 is a piece of subsidiary legislation enacted under the Work Injury Compensation Act 2019 (WICA 2019). Its purpose is to provide a temporary exemption from certain offenses under Section 30 of WICA 2019 for licensed insurers and insurance intermediaries who offer or enter into contracts to provide "interim policies" or "deemed approved policies" to employers before 1 January 2021.
Section 30 of WICA 2019 generally prohibits any person from offering or entering into a contract to provide work injury compensation insurance coverage to an employer, unless that person is an approved insurer. The Order creates a limited exception to this rule, allowing licensed insurers and their intermediaries to provide certain transitional insurance policies during the initial implementation period of the new WICA regime.
What Are the Key Provisions?
The key provisions of the Work Injury Compensation (Exemption from Section 30) Order 2020 are as follows:
Exemption from Section 30(1) Offenses: Section 3(1) of the Order exempts licensed insurers and insurance intermediaries from liability for an offense under Section 30(1) of WICA 2019 if they offer or enter into a contract to provide an "interim policy" to an employer before 1 January 2021. An "interim policy" is defined in the related Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020 as a policy that provides work injury compensation coverage during the transitional period before the new WICA regime fully takes effect.
Exemption from Section 30(3) Offenses: Section 3(2) of the Order exempts licensed insurers and insurance intermediaries from liability for an offense under Section 30(3) of WICA 2019 if they offer or enter into a contract to provide a "deemed approved policy" to an employer before 1 January 2021. A "deemed approved policy" is also defined in the related regulations as a policy that is deemed to be approved by the Commissioner for the purposes of the new WICA regime.
The exemptions in Sections 3(1) and 3(2) allow licensed insurers and their intermediaries to continue offering certain transitional insurance products to employers during the initial implementation period of WICA 2019, without running afoul of the general prohibition in Section 30.
How Is This Legislation Structured?
The Work Injury Compensation (Exemption from Section 30) Order 2020 is a short piece of subsidiary legislation consisting of only three sections:
- Citation and commencement - This section provides the title of the Order and states that it comes into operation on 1 September 2020.
- Definitions - This section defines the key terms "deemed approved policy", "interim policy", and "licensed insurer" by reference to the related Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020.
- Exemption - This is the substantive section that provides the exemptions from liability under Section 30 of WICA 2019 for licensed insurers and insurance intermediaries offering certain transitional insurance policies.
Who Does This Legislation Apply To?
The Work Injury Compensation (Exemption from Section 30) Order 2020 applies to two main groups:
- Licensed insurers - The Order exempts licensed insurers from liability under Section 30 of WICA 2019 if they offer or enter into contracts to provide "interim policies" or "deemed approved policies" to employers before 1 January 2021.
- Insurance intermediaries - The Order also exempts insurance intermediaries from liability under Section 30 if they are involved in offering or providing these transitional insurance policies on behalf of licensed insurers.
The exemptions only apply to the specific activities of offering or entering into contracts for "interim policies" and "deemed approved policies" during the initial implementation period before 1 January 2021. The Order does not provide any broader exemptions beyond this limited scope.
Why Is This Legislation Important?
The Work Injury Compensation (Exemption from Section 30) Order 2020 plays an important role in facilitating the smooth transition to the new WICA 2019 regime. By providing temporary exemptions, the Order allows licensed insurers and their intermediaries to continue offering certain transitional insurance products to employers during the initial implementation period.
This is significant because Section 30 of WICA 2019 generally prohibits any person from offering or entering into a contract to provide work injury compensation insurance coverage, unless that person is an approved insurer. Without the exemptions in this Order, licensed insurers and intermediaries could potentially face liability for continuing to offer existing insurance products, even on a temporary basis.
The Order helps ensure that employers can maintain appropriate work injury compensation coverage during the transition to the new WICA regime, without disruption. It provides regulatory flexibility and avoids potential gaps in insurance availability that could otherwise arise. Overall, the Order plays an important role in facilitating a smooth implementation of the new WICA 2019 legislation.
Related Legislation
- Work Injury Compensation Act 2019
- Work Injury Compensation (Saving and Transitional Provisions) Regulations 2020
Source Documents
This article provides an overview of the Work Injury Compensation (Exemption from Section 30) Order 2020 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.