Special licence conditions imposed on Fletcher International Exports Pty Ltd

21 November 2022

SIRA has imposed special conditions on Fletcher International Exports Pty Ltd workers compensation self-insurer licence to address issues in compliance, conduct and case management practices.

The conditions follow concerns identified in a SIRA file review, issues raised by the Independent Review Office (IRO) and subsequent performance discussions between SIRA and the insurer.

The file review in mid-2021 identified that workers were not receiving entitlements in accordance with the workers compensation legislation, the insurer was not meeting legislative timeframes and issues with records management.

In September 2021, SIRA issued a letter of concern to Fletcher International Exports Pty Ltd regarding its claims management practices and requested they develop and implement a remediation plan.

In July 2022, SIRA was alerted to further concerns by the IRO and a worker’s legal representative.

Due to ongoing concerns, SIRA has imposed the following special conditions on Fletcher International Exports Pty Ltd’s workers compensation insurer licence under section 181 of the Workers Compensation Act 1987:

• The licensee is required to develop a remediation plan to improve injury and claims management compliance and implement SIRA’s Standards of Practice. The remediation plan must be submitted to SIRA for review and approval by 30 November 2022. The plan must contain specific remediation steps in relation to:
  • Updating any actions contained in the FIE corrective action plan submitted to SIRA in October 2021
  • The process for response to any enquiries or complaints raised by the Independent Review Office
  • The process of identifying when a claim for compensation has been received and the process and timeframes for responding to that claim
  • Ensuring appropriate supports for workers, claim decision making and payments to workers during plant shut down periods
  • The payment of entitlements to workers following a determination by the Personal Injury Commission, and
  • How the SIRA Standards of Practice will be incorporated into claims and injury management.
• The licensee must implement the Remediation Plan as approved by SIRA in accordance with the timeframes in the plan and provide SIRA with a monthly update on the implementation of the plan within 10 business days of the end of each month, until finalisation of the plan.
• The licensee must develop and implement a quality assurance program to monitor the effectiveness of its Remediation Plan and claims management compliance and performance. The licensee must provide SIRA with a monthly report of the quality assurance program results within 10 business days from the end of each month until advised otherwise by SIRA.

Failure to comply with a licence condition imposed by SIRA can result in further regulatory action including letters of censure, fines or civil penalties up to $50,000, suspension or cancellation of licences.

SIRA’s focus is for Fletcher International Exports Pty Ltd to achieve improved outcomes for workers while ensuring compliance with the legislation and will closely supervise the insurer’s performance and compliance with the licence conditions.