How a licence application is considered

In considering a licence application the SRC Commission will look at information supplied in the written application along with information collected in the application evaluation process and any other matter that the SRC Commission considers relevant to the grant of a licence.

In considering whether an applicant should be granted a licence to self insure under the SRC Act, the SRC Commission will have regard to issues such as;

(a) resources, the interests of employees and the capacity of the applicant to meet standards set by the SRC Commission for claims management, rehabilitation and prevention.

(b) financial and prudential information such as the financial viability of the organisation, funding of liabilities and obtaining the required bank guarantee.

(c) claims management systems information including accurate and quick determinations and payments, ensuring equity of outcomes and the capacity to comply with the conditions of licence.

(d) the past performance of the applicant in complying with and conforming to applicable laws or statutory guidelines in relation to the health and safety of employees, rehabilitation of employees, premium payment and claims management obligations.

As part of the licence application process, Comcare undertakes, on behalf of the SRC Commission, a rigorous evaluation of the applicant. The activities undertaken by Comcare in assessing licence applications include:

• obtaining expert and independent financial advice on the financial viability of the applicant
• undertaking an evaluation of the applicant’s prevention, rehabilitation and workers’ compensation management systems
• seeking information from State and Territory regulatory authorities on the historical performance of the applicant in relation to prevention, rehabilitation and claims management.

The legislation does not stipulate a timeframe for the evaluation of self-insurance licence applications and it can vary depending on the complexity of the information provided.  The preparedness and capacity of the licence applicant to meet all of the requirements will enable the process to be undertaken in a timely manner.

The SRC Commission has adopted guidelines for the consideration of licence applications and renewals.  The guidelines are designed to bring clarity and openness to the application process, and set out a timetable for the lodgement of licence applications and comments from interested individuals and bodies.  The guidelines are avaliable from the SRC Commission website.

The applicant must pay a licence application fee which will reflect the costs involved in assessing the licence application.

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