395Movement from scheme insurance to self-insurance

395 Movement from scheme insurance to self-insurance

(1) When applying for approval as a self-insurer in accordance with section 376(2)(a) or (c) or (3), an employer may elect to assume the liability for, and the responsibility for management of, its tail claims.

S. 395(2) amended by No. 44/2014 s. 24(17).

(2) An employer who—

(a) makes an election under subsection (1); and

(b) gives the Authority a guarantee in accordance with section 399 in respect of its tail claims on or before the approval of the employer as a self-insurer takes effect under section 382(1)—

assumes liability for, and responsibility for management of, its tail claims.

If a self-insurer assumes liability for its tail claims, the self-insurer may exercise its powers and functions under this Act or the Accident Compensation Act 1985 in relation to the injury or death to which a tail claim relates as if the injury or death were one to which section 391 applies.

(3) If an employer that is approved as a self-insurer has not made an election under subsection (1), the Authority—

(a) retains the liability for, and the responsibility for management of, the tail claims of the employer; and

(b) if the employer—

(i) is the holding company of an eligible subsidiary that is a self-insurer; and

(ii) ceases to be a self-insurer—

assumes the liability for, and the responsibility for management of, the tail claims of the eligible subsidiary.

former self-insurer means an eligible subsidiary of an employer that was a self-insurer before it became an eligible subsidiary of the employer;

tail claim, of an employer, means a claim, whenever made—

(a) in respect of an injury or death incurred or suffered—

(i) by a worker employed by the employer, or an eligible subsidiary of the employer, before the date on which the approval of the employer as a self-insurer takes effect under section 382(1); or

(ii) by a worker employed by a former self-insurer before it became an eligible subsidiary of the employer; or

(iii) if the employer makes an election to assume the tail claims of a former self-insurer, by a worker employed by the former self‑insurer before the transfer date or before the date on which a former self-insurer ceased to be a self-insurer, which ever first occurs; or

(iv) if the employer does not make an election, by a worker before the Authority assumed the tail claims of a former self-insurer under section 403;