NSW workers who have died or have been diagnosed with dust diseases including mesothelioma or silicosis have missed out on close to $15 million in compensation due to payment errors by the state-run insurer, icare.
Reports uncovered by the Sydney Morning Herald indicate that about 830 workers have died without the appropriate compensation, and at least 300 workers who are living with the diseases have been underpaid close to $4 million since 2014.
The insurer says it identified the errors at least 12 months ago. A source quoted by the SMH said the underpayments had been discussed as early as 2015.
None of the workers who are affected by the underpayments has been informed of the error. According to the SMH, “the errors have been linked to issues with the interpretation of decades-old legislation.”
The icare board was informed of the issue in December, although internal discussions raised the issue in May last year.
Icare is reportedly working on confidential documentation which will outline the remediation plan affected since 2014, but it’s likely that many more workers may have been affected. Icare has indicated that it will make a public announcement before the end of the financial year.
A risk analysis, separate from icare processes, anticipates “wide-ranging impacts for icare and for Dust Diseases Care clients and their dependents … with no one simple solution”.
“There will also be difficulty encountered in potentially repaying underpaid monies in respect of deceased workers,” it states.
An icare spokeswoman explained that the issues are prior to icare taking the role of the state-based insurer in NSW and are reflective of “legal interpretations” of the NSW Workers Compensation Acts.