Injured NT workers ‘bullied’ off compensation payments by ‘unscrupulous’ insurers, lawyers say

Workplace injury lawyers say dodgy insurance companies are ‘putting the wellbeing of injured Territorians and their families at risk’ by unlawfully cancelling payments for no good reason.

Workplace injury lawyers say they are concerned injured Territorians ‘are being denied their rights by unscrupulous insurers’.

Territorians are being ripped off by “unscrupulous” insurance companies that are arbitrarily cancelling compensation payments and costing injured works tens of thousands of dollars, according to lawyers specialising in the field.

Maurice Blackburn senior associate Amy Williams said the NT’s no-fault workplace injury compensation scheme meant sidelined workers’ fate was left in the hands of insurers.

Ms Williams said the scheme was supposed to ensure injured workers could quickly and easily access compensation and have their medical bills met while they get back on their feet, without the need for litigation.

But she said that meant Territorians’ access to their entitlements depended on insurance companies acting lawfully and ethically in the way they manage claims, with too many of them “not meeting that basic standard”.

Darwin teacher Nim Jayawardhana was forced to stop working after being assaulted by a student and had been on workers compensation until his insurer unexpectedly cut off his payments. Picture: Pema Tamang Pakhrin

Ms Williams said Maurice Blackburn had come across “many cases” in its NT practice in which claims managers were simply stopping payments without following any of the required steps, while sometimes telling workers there was nothing they could do.

“If insurers are incapable or unwilling to comply with their legislative obligations when it comes to claims management, it puts the wellbeing of injured Territorians and their families at risk,” she said.

“It raises a really serious question about whether profit-driven insurance companies should really have a role in administering our workers compensation scheme.

“We’re concerned that workers are being denied their rights by unscrupulous insurers who are shirking their obligation to let people know they have a right of review when the insurer decides to stop paying them — in some cases, this unlawful practice costs workers tens of thousands of dollars.”

Maurice Blackburn senior associate Amy Williams says insurers’ failure to comply with their obligations puts Territory workers at risk. Picture: Supplied

Ms Williams said the Territory’s workers compensation scheme “won’t make people rich” but “it should at least operate as some kind of safety net when people are doing it tough”.

“If insurance companies won’t comply with their basic legislative obligations, then the system can’t work, and NT workers are at real risk of mistreatment on the scheme,” she said.

Darwin teacher Nim Jayawardhana said he was forced to stop working after being assaulted by a student last year and had been on workers compensation until his insurer unexpectedly cut off his payments in June.

“They say ‘Oh we’re here to help you, ask us about anything’ but in reality, how they carry things out is quite adversarial and just essentially treating you like you’re scum who’s getting money for nothing,” he said.

“I actually know people across all different government departments who have been in situations where they’re effectively bullied off payments, or told they need to quit, or all different things just to avoid paying them out.”