131Payment of premiums

131 Payment of premiums (1) Where, in respect of a policy of insurance or indemnity against liability under this Act: (a) the insurance or indemnity period is 12 months; and

Return to Work Act 1986 120 (b) the premium payable is more than $500 or, where some other amount is prescribed, more than that other amount, the employer may, in such manner as is agreed on between himself or herself and the insurer or, in default of agreement, as is prescribed, elect to pay the premium by 4 instalments, the several instalments being payable on dates that are 1, 3, 5 and 7 months after service on the employer of a demand or request by the insurer for payment of the premium. (2) An instalment referred to in subsection (1) in respect of a premium referred to in that subsection shall be: (a) due on the dates that are 1, 3, 5 and 7 months after service on the employer of a demand or request for payment of the premium; and (b) equal to 25% of the premium. (3) Where an employer: (a) has not elected under subsection (1) to pay a premium referred to in that subsection by instalments and fails to pay the full amount of the premium within one month after service on him or her of a notice that payment of the premium is due; (b) has elected under subsection (1) to pay a premium referred to in that subsection by instalments and fails to pay an instalment by the due date for the instalment; or (c) fails to pay an adjustment of a premium referred to in subsection (1) within one month after service on him or her of a notice that payment of the amount of the adjustment is due, then: (d) in the case referred to in paragraph (a) – the full amount of the premium referred to in that paragraph; (e) in the case referred to in paragraph (b) – the balance of the premium referred to in that paragraph unpaid or, where no instalment has been paid, the full amount of that premium; and (f) in the case referred to in paragraph (c) – the amount of the adjustment referred to in that paragraph, bears interest until payment is made (except to the extent that payment of interest is waived by the insurer) at the prescribed rate and is recoverable with interest as a debt due and payable.

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