3Calculation of insurance premium payable by employer

3 Calculation of insurance premium payable by employer

3 Calculation of insurance premium payable by employer

(1) The premium payable by an employer for a policy of insurance is to be calculated by requiring the premium to be calculated for a period of insurance of not more than 12 months and:

(a) if the employer is a medium or large employer for the purposes of the policy, in accordance with the following formula:

(b) if the employer is a small employer for the purposes of the policy, in accordance with the following formula:

where:

P is the premium for the time being payable by the employer in respect of the period of insurance to which the policy relates, being:

(a) except as provided by paragraph (b) below, the initial premium so payable in accordance with this Order, or

(b) where adjustments are required to be made to that premium by reason of the operation of this Order, the premium so payable by reason of those adjustments.

T is the basic tariff premium for the employer, calculated with respect to the period of insurance in accordance with Schedule 3 to this Order.

S is the experience adjustment factor for the employer determined with respect to the period of insurance in accordance with Schedule 4 to this Order.

E is the experience premium, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 5 to this Order.

D is the dust diseases contribution, if any, for the employer.

Q is the premiums adjustment contribution, if any, for the employer.

I is the input tax credit adjustment, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 9 to this Order.

Y is the premium discount amount, if any, for the employer determined with respect to the period of insurance in accordance with Schedule 10 to this Order.

(2) However, where the basic tariff premium [T] for a policy of insurance whose total premium is to be calculated under subclause (1) (a):

(a) is less than $50,000 (or, if the period of insurance is to be less than 12 months, where the basic tariff premium [T] would be less than $50,000 were that period of insurance to be 12 months), the experience adjusted premium is not to exceed one and a half times the amount of that basic tariff premium , and