Change to the Coal Industry Act 2001 (NSW)

Published: 25/09/2018

Change to the Coal Industry Act 2001 (NSW)

The Coal Industry Amendment Bill 2018 (NSW) was approved in NSW Parliament to amend the Coal Industry Act 2001 (NSW)(the "Act").

The amendments to the Act are intended to ensure employers obtain standardised workers compensation cover under the Coal Mines Insurance Scheme for all workers who engage in mining activities in the coal industry.

What has changed?

The Act requires employers in the coal industry to have workers compensation insurance in place for any of their employees who work in or about a coal mine or engaged in mining activities in the coal industry. The company that arranges for this insurance is Coal Services Pty Limited trading as Coal Mines Insurance ('CMI').

The amendments to the Act ensure that employees working in the coal industry, who were previously insured only under the general workers compensation insurance scheme, are now insured with CMI. CMI provides coal industry workers with greater benefits and a wider range of health and safety services.

When do the amendments come into effect?

The amendments to the Act came into effect on 1 July 2018.

There is a transition period, running from 1 July 2018 to 30 September 2018, for employers to comply with the amendments to the Act.

From 1 October 2018, employers of coal industry workers will be required to hold a certificate of currency from CMI for a policy that insures their coal industry workers.

Do I need a policy with CMI?

Employers are required to have a policy under the CMI scheme if:

  • their employees work in or about a coal mine and are engaged in mining activities in the coal industry; or
  • their employees are engaged in mining activities in the coal industry but do not directly work in or about a coal mine. For example, employees who work in mine operator administration offices and workshops.

Employers do not need to hold a policy with CMI if the employees work is not directly related to coal mining. For example, making deliveries, servicing office equipment or office consulting.

In this instance, the employer may need to arrange for insurance with another workers compensation insurer to cover their employees who work outside of the coal industry.

How Coverforce can help

If you are an employer in the coal industry and would like to find out more about arranging workers compensation cover for your employees, contact Coverforce and speak to one of our experienced insurance brokers today.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances please contact Coverforce directly.

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