8KApproval of agreement—Schedule 3, clause 3(1)

8K Approval of agreement—Schedule 3, clause 3(1)

8K Approval of agreement—Schedule 3, clause 3(1)

(1) After receiving an application for approval of a pre-injury average weekly earnings agreement in accordance with clause 8J, the insurer is to determine whether to approve, or refuse to approve, the agreement.

(2) The insurer is to determine the application within 7 days after receiving the application (except as provided by subclause (3)).

(3) If the insurer has a reasonable excuse for not commencing provisional weekly payments of compensation, the insurer is to determine the application within 7 days after the earlier of the following—

(a) the insurer ceases to have a reasonable excuse for not commencing those weekly payments,

(b) the insurer accepts liability for weekly payments of compensation in respect of the injury.

(4) The insurer is to approve a pre-injury average weekly earnings agreement if satisfied that the agreed amount reasonably reflects the worker’s pre-injury earnings (excluding any earnings before or after the period of 52 weeks ending immediately before the date of the injury) and that the agreement is otherwise fair and reasonable.

(5) The insurer must not approve a pre-injury average weekly earnings agreement relating to a worker who is a person under legal incapacity.

(6) The insurer may decide to make weekly payments of compensation on the basis of the agreed amount of pre-injury average weekly earnings until the application for approval of the agreement is determined (an interim payment decision).

(7) For the avoidance of doubt, an interim payment decision is, for the purposes of clause 3 of Schedule 3 to the 1987 Act, a decision that is authorised to be made before the agreement can take effect.

Note.

Clause 3 of Schedule 3 to the 1987 Act provides that certain decisions authorised or required to be made by the regulations are taken not to be work capacity decisions for the purposes of Division 2 of Part 3 of that Act.

(8) The insurer is not to approve a pre-injury average weekly earnings agreement if, before the application for approval of the agreement was made, the insurer made a work capacity decision about the amount of the worker’s pre-injury average weekly earnings.

(9) The insurer is not to make a work capacity decision about the amount of the worker’s pre-injury average weekly earnings before the application for approval of the pre-injury average weekly earnings agreement is determined.