Third party recoveries

Published: 12 August 2019
Last edited: 12 August 2019

In certain circumstances, workers compensation insurers are able to recover compensation payments, or ensure other negligent parties contribute to the costs of a worker’s compensation claim.

Insurers are expected to identify and manage recoveries in a timely and efficient manner. They should invest resources to proactively screen claims for recovery potential.

Screening for recovery should occur within 21 days of receipt of the claim so that claims with potential recovery can be identified and referred for investigation.

S6. Recoveries
Claims will be screened early to determine whether any third-party recoveries are to be pursued.

Types of recovery actions

If a worker’s injury is caused, wholly or in part, by the negligence or breach of statutory duty of a person other than the employer, then the insurer may recover compensation payments from that other person (‘the third party’).

A right of recovery can arise in different circumstances including but not limited to:

  • accidents involving motor vehicles
  • labour hire
  • public liability claims – slips, trips and falls
  • occupier claims - off-site incidents
  • Australian Consumer Law Claims (see Commonwealth Competition and Consumer Act 2010)
  • assaults by a third party (other than a fellow employee).