How do I apply to transfer my WorkCover to

							                   WCRA Industry Cover
FREQUENTLY ASKED QUESTIONS 2008/09

What is WCRA Industry Cover?
Waste Contractors and Recyclers Association is the peak industry body
representing waste contractors and recycling businesses in New South
Wales.      WCRA Industry Cover is a workers compensation program
specifically designed with insurance experts for the members of WCRA.

WCRA has been active in lobbying government to achieve changes to the
workers compensation scheme, premium reforms and tariff reductions.

Building on these successes, WCRA is now launching an innovative industry
solution for the management and administration of workers compensation
designed to give our members real competitive advantage.

WCRA has entered into business partnerships with Allianz Australia and
Hunter Premium Funding to support WCRA Industry Cover, its new workers
compensation program.

Why should I join WCRA Industry Cover, the new WCRA workers
compensation program?
Small to medium enterprises (SMEs) are often too busy running their
businesses to fully manage their workers compensation. Unlike large
corporations and national employers they may not have the benefit of in-
house resources including insurance managers, risk managers, rehabilitation
staff and dedicated OHS personnel.

In the past SMEs may have sought assistance from their insurance brokers
who now are often less involved in workers compensation following their
removal from the new scheme in 1987 by the New South Wales government.

In response to member concerns about the cost and administrative burden of
workers compensation WCRA looked to develop an effective solution.

WCRA Industry Cover aims to provide a tailored and managed program
specifically aimed at SMEs offering a higher level of service, improved claims
management and OH&S services with the objective of reducing workers
compensation costs to WCRA members.

The Industry Cover program is uniquely designed for SMEs within industry
groups and is the first scheme of its type to be launched in New South Wales.




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                    WCRA Industry Cover

What are the advantages of joining WCRA Industry Cover?
There are eight key member benefits of joining the WCRA workers
compensation program.

Your own Business Account Manager
Most importantly, you will enjoy a higher level of service by having a
dedicated Business Account Manager under the program not normally
available to SMEs. Your Business Account Manager is there to support you
in all workers compensation matters by following up your enquiries, co-
ordinating services and acting as your single point of contact.

Program Support Centre
WCRA Industry Cover provides you with a dedicated Program Support Centre
operating from 8.30 a.m. to 5.30 p.m. Monday to Friday for notification of any
workplace injury or enquiries concerning membership, claims, policy, premium
or funding. Whenever you have a workplace injury this is the number you
need to immediately ring.

Your call to the Program Support Centre will automatically trigger four
important responses designed to assist you:

   •   First report to Allianz who will waive your claim excess should a claim
       eventuate (note you must report the injury within five days).
   •   Notification to your Business Account Manager who will:
           o Arrange for a claim kit to be sent.
           o Liaise with the Case Manager to initiate three point contact with
               the employer, injured worker and treating doctor.
           o For significant injuries, liaise with the Case Manager to ascertain
               whether a provisional liability determination is required to fast
               track benefit payments (up to 12 weeks) and medical treatment
               (up to $ 7,500) to assist your injured employee even before a
               claim form may have been completed.
   •   Earliest possible referral of significant injuries to the program’s injury
       management providers to assess the injury, monitor treatment, initiate
       rehabilitation and determine an early return to work program.
   •   For serious accidents, referral to the program’s legal advisers to
       assess compliance issues and provide preliminary advice on the
       potential for or management of a WorkCover prosecution.

The Program Support Centre service is designed to assist you, support you,
protect you and save you real money on claims when they occur.

Full program management
Only those businesses paying less than $10,000 in annual premium are fully
protected from the impact of claims on their premium.

For all other employers the cost of claims remains the only component of
premium that you can control.



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                   WCRA Industry Cover
Further, the sizing or ‘S’ Factor in the premium formula determines how much
claims will impact on your premium. For many larger employers this can
mean paying more in premium over three years than the actual cost of claims.
These employers are effectively cross-subsidising smaller employers, other
industries or underwriting the cost of those claims generally excluded from
premiums (e.g. journey claims, recess claims, claims above the $150,000
cap). The larger your business the more this occurs.

That’s why it is so important that under WCRA Industry Cover, your claims
and premium history will be monitored, managed and benchmarked against
similar employers, industries and the New South Wales Scheme.

This will be a new management tool providing an invaluable measure of your
performance. WCRA and its insurance advisers, in conjunction with Allianz,
will review the performance of the program every quarter to assist poor
performing members and identify workers compensation problems, risk
management issues and OH&S trends in order to recommend or develop
appropriate management strategies and solutions.

This type of program management by Scheme Agents is not normally offered
to SMEs who are not part of any industry-based portfolio.

Financial Options
A key feature of the program is a low cost option to have your 2008/09 annual
premium funded by Hunter and payable by monthly instalments rather than
annually or by statutory instalments. Members whose annual premiums are
above $3,000 will automatically be eligible for premium funding up to
$100,000 per annum without the need for financial statements or credit
checks.

For SMEs this provides two important financial advantages - improving
business cash flow and, because Hunter pays your premium, you no longer
risk losing instalments rights and incurring statutory penalty interest for late
premium payments.

OHS Compliance Assessment
The program is also supported by a quarterly strategic review with WCRA, its
insurance advisers, Allianz and the program service providers aimed at
identifying member’s recurring claims issues, injury trends and possible
prevention strategies.

Of particular importance is the program’s OH&S toolkit designed to self-audit
each member’s level of compliance with legislative requirements and identify
key OH&S or training requirements. These program services are provided as
part of the program management and supported by OH&S professionals at
WCRA and the preferred program service provider, WorkOptions.




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                  WCRA Industry Cover

OHS and Injury Management Support Line
Members have the benefit of a dedicated OHS Support Line supported by the
program’s injury management and OHS professionals, WorkOptions.

This support line also operates from 8.30 a.m. to 5.30 p.m. Monday to Friday
to answer OHS enquiries, obtain preliminary advice, source safety materials
and seek professional risk management assistance about workplace incidents
and accidents.

Through the support line, WorkOptions will also assist with any enquiries
regarding injury management strategies or return to work obligations.

Service Standards
To protect members, WCRA has imposed on its business partners certain
strict service standards through Service Level Agreements in relation to
workers compensation administration, premium funding and claims
management. Members get the full benefit of the Service Level Agreements
which are not usually available from claims agents to SMEs on an individual
basis.

Quality Assurance
WCRA Industry Cover is a WCRA program. Our endorsement of the
business partners, Allianz and Hunter, and selection of preferred program
service providers is both strategic and valued.

With your current Scheme Agent you are most likely a ‘small fish in a large
pond’. Your status as an WCRA member now provides significant leverage
with these partners and service providers.

Members not only enjoy the on-going quality assurance of program services
by WCRA on their behalf but can readily escalate any service issues directly
with their Business Account Manager or, ultimately, with WCRA.

Who are the preferred program service providers and why were they
selected?

Allianz is the appointed Scheme Agent managing the WCRA Industry Cover
program and is supported by the WCRA preferred service providers for injury
management (Work Options) and legal services (Leitch Hassan Dent).

Work Options is a specialist injury management provider in New South Wales
experienced in working with Industry Associations and employer groups in the
Industry Cover program. It has an enviable record in return to work results,
offers the full range of injury management and OHS services to support
members.

Leitch Hassan Dent are specialist lawyers in workers’ compensation and CTP
already acting for a large number of peak bodies, industry associations,
employer groups and self-insurers in New South Wales.


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                   WCRA Industry Cover

What if I already have my own preferred provider arrangements?

Larger businesses sometimes have arrangements with particular service
providers on their workers’ compensation by arrangement or in agreement
with their Scheme Agent.

You may retain those preferred arrangements when joining WCRA Industry
Cover if your providers:
- Are under existing provider arrangements or contracts.
- Agree to be bound by the same performance measures, service
   standards and kpi’s set by WCRA on its preferred program providers to
   ensure quality, performance and cost-effectiveness.
- Provide the same value-added and agreed services as the program
   providers including program management and program protocols.

In the absence of any existing preferred provider arrangements, WCRA
Industry Cover will use the WCRA preferred service providers.

Will my service providers change if I am already an Allianz client?
As the program manager Allianz will continue to use its regular panel
providers where a participating member is an existing Allianz client.

What are my obligations under the new program?
You will be required to complete a simple Program Application form.

The are three aspects of the Program Application form:
- You will need to formally change Scheme Agent to Allianz.
- You need to authorise the release of your policy, claims and premium
   data to WCRA, its insurance advisers and program service providers to
   enable them to manage the portfolio and assist you.
- You may select the premium funding option and pay premium monthly.

You will need to provide a copy of the premium renewal notice or premium
adjustment notice issued by your current Scheme Agent with the completed
Program Application.

How do I apply to transfer my workers compensation to WCRA Industry
Cover?
You simply need to need to complete the Program Application form.

A copy of the form can be downloaded from the WCRA website at
www.wcra.com.au.

Alternatively, contact the WCRA Business Account Manager, Wayne Highfield
at Allianz on 1300 20 40 11 or email wcraindustrycover@allianz.com.au.




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                   WCRA Industry Cover

What does it cost to participate in WCRA Industry Cover?
There is no cost to transfer your workers compensation to the WCRA workers
compensation program.

Those members electing to pay premiums monthly will incur a small funding
cost. WCRA has negotiated preferential terms and funding rates from Hunter
and these costs are fully tax deductible.

What happens when you receive my Program Application?
Your Business Account Manager will contact you within three working days.

Your previous Scheme Agent will be advised on your behalf and you will
receive a complete Information Pack from Allianz as your new Scheme Agent.

If you have requested the premium funding option, your Business Account
Manager will ensure your premium is paid on your behalf and put in place a
monthly deduction without the need for a separate funding proposal.

Your Business Account Manager will then provide you with written
confirmation of insurance cover and premium funding approval for the
2006/07 policy year.

How do I qualify to participate in the program?
You need to be a financial member of WCRA.

If you are a member of an affiliated Industry Association or a WCRA business
partner or industry supplier you should contact WCRA to determine your
eligibility to join WCRA Industry Cover.

Why should I use Hunter Premium Funding?
Hunter is the largest premium funding organisation in Australia and one of the
few that funds workers compensation premiums.

The WCRA workers compensation program offers members with premiums in
excess of $3,000 per year five immediate premium benefits:

-   It enables you to pay your premiums monthly.
-   A preferential rate is applicable to WCRA members.
-   Any funding cost associated with this option is fully tax deductible.
-   Pre-qualification up to $100,000 annual premium (subject to no adverse
    credit history with Hunter).
-   Seamless integration into WCRA Industry Cover program




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                   WCRA Industry Cover

There are three further important features of the premium funding option that
assist WCRA members:

-   Because Hunter Premium Funding pays the premium on your behalf you
    are no longer at risk of losing instalment rights or incurring statutory
    penalty interest for late premium payments.
-   Your premium is normally adjusted upon expiry where you have
    movements in wages or claims experience during the year. Upon policy
    expiry you receive a premium adjustment notice at year end. This
    premium adjustment can also be funded by Hunter within the same
    facility.
-   Should you be randomly selected or targeted by WorkCover for a wage
    audit during the year and incur extra premium as a result, this extra
    premium can also be funded by Hunter within the same facility.

How is my premium paid?
Upon renewal of your policy, you will be offered the option to have Hunter
fund your 2006/07 premium. Hunter will begin paying your premium on your
behalf at the first due date on 1st October. You will then be billed monthly (in
10 instalments) by Hunter and can select either credit card or direct debit
payment methods.

What is the Industry Cover program interest rate for premium funding?

Members of WCRA enjoy a preferential program rate of interest for premium
funding of only 3.85%. This is a very competitive rate and is tax deductible.

When you offset this small funding cost with the available tax deduction plus
the interest earnings or time value of the money which you would have
otherwise expended on premium (but which is now available to your
business), premium funding makes real sense.

Can I retain my current insurance broker?
Yes. You are not required to change insurance broker upon joining WCRA
Industry Cover.

Your insurance broker is regarded as a key stakeholder in the WCRA
Workers’ Compensation Program and will also be contacted by your Business
Account Manager. Your broker will be introduced to the program and
periodically provided with copies of claims reports and policy documentation
to enable them to support you with professional advice and insurance
services.




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                   WCRA Industry Cover

If Allianz is currently my Scheme Agent, can I join the WCRA program?
Yes. This innovative workers compensation program offers specific benefits to
WCRA members including dedicated Business Account Manager, dedicated
support line, special premium funding arrangements, preferred funding rates
and program management aimed at improving claims performance, reducing
costs and thereby lowering premiums.

Accordingly, there are strong reasons to join the WCRA Industry Cover even if
you are already with Allianz.

I am currently with another Scheme Agent but my premium is already
funded by Hunter. Can I join the program?
Yes. There will be no change to your current funding arrangement until the
policy falls due for renewal. Upon renewal, if you elect to be premium funded
we will ask you to complete a proposal with Hunter.

Do I have to wait until renewal before I can transfer to the WCRA
workers compensation program?
Yes. In New South Wales you cannot transfer to another Scheme Agent until
your current policy expires.


Why did WCRA select Allianz as its business partner and preferred
Scheme Agent?
Allianz was recently awarded the largest market share in New South Wales by
the WorkCover Authority following a review of all potential Scheme Agents.
This is, clearly, a reflection of the confidence by the Regulator in Allianz.

WCRA acknowledges the outstanding record of return to work achieved by
Allianz which is significantly better than the NSW scheme average for claims
of continuous duration. Given that cost of claims is the only component of
premium within your control this makes return to work the major kpi in
selecting a preferred Scheme Agent.

Allianz operates in workers’ compensation nationally in all Australian
jurisdictions (other than Queensland and South Australia where monopoly
arrangements exist) and can provide Excess of Loss and Seafarers cover.

WCRA members with multi-state operations (or self-insured operations in
other States) have the opportunity to enjoy the benefits of consolidating with a
single insurer.

Why did WCRA select Hunter as its business partner and preferred
premium funder?
Hunter is Australia’s leading premium funding company and one of the few
able to offer premium funding in relation to workers compensation.

Hunter is a wholly owned subsidiary of Allianz enabling the premium funding
facility to be seamlessly incorporated into the WCRA Industry Cover program.


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                           WCRA Industry Cover

Where do I get further information?
Employers who are not currently members of WCRA may seek further
information from WCRA on telephone (02) 9604 7206 or the website
www.wcra.com.au.

Members of WCRA or their insurance brokers seeking further information on
the program should contact the WCRA Business Account Manager,
Wayne Highfield on telephone 1300 20 40 11 or
email wcraindustrycover@allianz.com.au




 WCRA Industry Cover Support Centre    1300 20 40 11
 OHS and Injury Management Advice Line 1300 55 07 70
                         Monday to Friday 8.30 a.m. to 5.30 p.m.


              Allianz Australia Workers Compensation (NSW) Limited ACN 003 087 545
     The information contained in this brochure is current as at June 2006 and applies to the 2006/07 policy year.




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