Insurance and Care NSW (icare) has announced that it will review the payments to Dust Disease Care participants after finding an issue with its historical payment practices.

According to icare, the historical payment practices in question pre-date the agency and reflect decades-old legal interpretations of the 1942 and 1987 NSW Workers’ Compensation Acts.

“We're working to identify and address these issues as quickly as possible to ensure we deliver the support required to the injured people we serve,” icare said in a statement.

icare first received legal advice regarding the issue in May 2020 to clarify the Dust Disease Care legal interpretation issue when preparing for an internal system change. It then sought a second opinion, receiving its final legal advice in November 2020. In early December 2020, the icare board was notified of the issue. The Treasurer, State Insurance Regulatory Authority (SIRA), and other relevant government agencies were also notified in the same month.

In 2020, icare appointed a new chair and chief executive officer, with a remit to undertake the reform required to provide better outcomes for injured workers and employers in NSW.

In January 2021, icare engaged with PwC to seek advice on any potential remediation options. After developing a proposed approach with PwC, the agency now seeks final assurance from independent third-party experts in wage remediation matters to ensure the best outcome for the Dust Disease Care participants. Remediation will immediately commence as soon as the advice is finalised.

icare offered assurances that the issue will not impact everyone in the scheme, nor do the Dust Disease Care participants need to do anything because the agency will contact every impacted person or estate. It also confirmed no changes to existing arrangements as of writing.

“As this work continues across icare, it is likely other matters will be identified which require remediation, and they too, will be expeditiously actioned,” icare said.