Costs of psychological injury
Cost of psychological injury
Psychological injury claims are a significant driver of workers’ compensation premiums.
In 2003-2004, Australian Government claims for psychological injury accounted for 7% of total workers’ compensation claims, though nearly 27% of total claim costs.
Costs of psychological injury claims are considerably higher than other injuries because they tend to involve longer periods of time-off work and higher medical, legal and other claim payments.
These costs do not take into account the organisational costs (such as the cost associated with absenteeism, labour turnover, workplace conflict and loss of productivity) or the impact on the psychological and physical well-being of individuals and their families.
Employers can influence these costs through a focus on prevention and early rehabilitation assistance.
Page last updated:November 14, 2007