icare workers compensation: Letter of Appointment

To ensure the privacy of employers and intermediaries Insurance and Care NSW (icare), acting on behalf of the Workers Compensation Nominal Insurer (the Nominal Insurer) requires employers and brokers acting on their behalf to agree to the terms in an updated letter of appointment.

National Insurance Brokers Association (NIBA) CEO, Dallas Booth said, “We at NIBA have some concerns with the wording of the proposed letter of appointment and have raised these concerns with icare.”

“In particular it is unclear how insurance brokers can provide an undertaking to comply with all privacy and health obligations that apply to the employer. This undertaking appears to be far too wide and NIBA has expressed willingness to be consulted further regarding this.”

icare has already communicated with brokers that:

  • Effective immediately, the updated letter of appointment template is required on all new appointments, especially those that will receive a cost of claims report
  • By 31 December 2020, all existing policies that currently receive a cost of claims report, will require a new letter of appointment form to be completed

The letter of appointment needed to updated as receiving inconsistent quality and detail in letters of appointments creates inefficiencies and potential privacy exposure, as further clarifications is required. The New South Wales workers compensation and state privacy legislative regimes place strict obligations on how insurers share information with third parties.

You can read more about the letter on the icare website.