The Default Insurance Fund
About the Default Insurance Fund
The Default Insurance Fund (DI Fund) commenced on 1 July 2006. The Fund is
established under section 166 of the Workers Compensation Act 1951 (the
The DI Fund is the safety net mechanism in the Australian Capital Territory
to ensure that all privately employed workers who: ·
- suffer personal injury arising out of, or in the course of, their
- suffer personal injury on an employment-related journey,
- suffer personal injury on a journey between the worker’s home and
- contract a disease for which their employment was a significant contributing
- suffer an aggravation, acceleration or recurrence of a disease for which
their employment was a significant contributing factor; and
- have NO OTHER access to workers compensation benefits.
Role of the Default Insurance Fund
The DI Fund provides access to benefits for injured workers where:
- an employer did not hold a compulsory workers compensation policy; or
- an insurer collapses or is unable to meet the costs of claims against
the workers’ compensation policies.
The DI Fund combines the previous functions of the Workers’ Compensation
Supplementation Fund and the Nominal Insurer.
For injuries that were notified to the Nominal Insurer before 1July 2006, the
DI Fund can only make payments to an injured worker in whose favour a judgment
has been awarded by the courts.
Section 30 of the Act states that:
(2) … the DI Fund Manager need not indemnify an employer in relation to
weekly compensation payable in relation to an injured worker’s injury if –
(a) the injury happened before the commencement of the Workers
Compensation Amendment Act 2006; and
(b) the Nominal Insurer had been given an injury notice for the
injury or was otherwise aware that there was no compulsory insurance
policy that applied to the worker in relation to the injury.
For injuries where initial notification to the DI Fund took place on or after
1 July 2006, the DI Fund will assess the claim and may take on the role of
insurer if an employer defaults on payment. The injured worker may receive
entitlements such as:
- Weekly compensation
- Rehabilitation Medical and
- all other expenses specified under the Act.
Insurers unable to meet claims costs
For claims where an employer’s insurer cannot make the payments, for example
the insurer collapses, the DI Fund will take on the role of the insurer.
The funding for the Default Insurance Fund is made up of two components:
- Levies, which are imposed on all ACT approved workers’ compensation insurers and self-insurers currently in the market. These levies currently meet the cost of all uninsured employer claims and related administrative costs, and.
- Contributions are currently made by the Territory to cover the costs of claims and administrative costs, where an insurer is unable to meet claims costs.
Where an employer fails to maintain a compulsory insurance policy, the DI Fund is entitled to recover, up to three times the amount of:
- compensation paid to the injured worker; and
- the premium that would have been payable to an insurer.
The Default Insurance Fund acts to recover those monies from the liable employer and returns them to the levied insurers and self-insurers.
For More Information
For more information please contact the DI Fund:
GPO Box 158
Fax: (02) 6207 0301
Click here to email the DI Fund Manager
Click here to download our Privacy Charter in PDF format
Click here to download the Employee's Claim Form in PDF format
Click here to download the Employer's Claim Form in PDF format
Click here to download the Approved Medical Certificate in PDF Format
Click here to download the Approved Medical Certificate in Rich Text Format
Click here to download the Personal Information Access Request in PDF Format
DI Fund Bulletins
Click here to download the bulletin Functions of the DIF in PDF Format
Click here to download the bulletin Guidelines for Weekly Compensation Payments in PDF Format
Click here to download the bulletin Injury Management Obligations in PDF Format
Click here to download the bulletin Obligations for Uninsured Employers in PDF Format
ACT Workcover - Useful Links
Click here to view the ACT Workers Compensation Act 1951
Click here to open the Worksafe ACT website