Victorian Current Acts Victorian Current Acts(1) On and from the date that an employer's approval as a self-insurer takes effect and until such time as the Authority assumes liability for the tail claims of the employer under section 407, the employer must—
S. 393(1)(a) amended by No. 44/2014 s. 15.
(a) ensure that there is in force at all times a guarantee in respect of liabilities incurred by the Authority by reason of the failure of the employer to meet its liabilities under this Act or the Accident Compensation Act 1985 or by reason that the employer has ceased to be an approved self-insurer; and
(b) have in force at all times a contract of insurance in respect of its contingent liabilities in accordance with the Ministerial Order made under section 380(3) and no other contract of insurance in respect of those liabilities.
(2) A guarantee referred to in subsection (1)(a), must—
(a) be given by an ADI to or in favour of the Authority; and
(b) be in a form approved by the Authority; and
(c) guarantee payment of amounts not less than—
(i) one and one-half times the assessed liability of the employer; or
(ii) $3 000 000—
whichever is the greater.
(3) For the purposes of subsection (2)(c)(i), the assessed liability of an employer means—
(a) the sum of the actuarial value of the current, non-current and contingent liabilities of the employer in respect of injuries and deaths for which the employer is liable under section 391 to pay compensation or make other payments; and
(b) the following amount—
(i) the sum of the actuarial value of the current, non-current and contingent liabilities of the employer for claims expected to arise in the 12 months after the assessment in respect of injuries and deaths for which the employer would be liable under section 391 to pay compensation or make other payments; less
(ii) the total amount expected to be paid by the employer and its eligible subsidiaries in relation to compensation payable under section 391 and compensation in respect of tail claims assumed by a self-insurer under section 395, 396, 397 or 398 in the 12 months after the assessment.
Note
In the event that the amount referred to in subparagraph (ii) exceeds the amount referred to in subparagraph (i), the amount referred to in paragraph (b) is $0.
(4) For the purposes of subsection (3), an assessment of the liabilities of the employer must be carried out at intervals of not more than one year—
(a) by an actuary approved by the Authority; and
(b) in accordance with guidelines made by the Authority under section 410(1) .
(5) For the purposes of an assessment under subsection (4), the employer must—
(a) make provision in its accounts for current, non-current and contingent liabilities in respect of injuries or deaths referred to in subsection (3)(a); and
(b) permit an actuary appointed by the Authority to inspect the books of the employer.
(6) In this section, "tail claim "means—
(a) any claim for which an employer has assumed the liability for, and the responsibility for management of, under section 395 or 396; and
(b) any claim of a body corporate that becomes an eligible subsidiary of an employer for which the employer has assumed liability for, and responsibility for management of, under section 397; and
(c) any claim of a self-insurer that becomes a subsidiary of another self-insurer for which the second-mentioned self-insurer has assumed liability for, and management of, under section 398.