Document name
Disaster Reserve
Document number
POL 12/2014

Effective date: December 1, 2014

Approved date: September 2, 2014

Application: Applies to all new injury claims on or after the effective date.

Policy subject: Employer accounts – Claims costs adjustments and cost relief

Purpose:

To establish guidelines for the Disaster Reserve.

BACKGROUND

Policy section content
Section detail
  1. Under Section 20 of The Workers’ Compensation Act, 2013 (the “Act”), the Workers’ Compensation Board (WCB) will determine:
    1. Whether a condition or death was a result of an injury, and
    2. Whether an injury has arisen out of or in the course of employment.
  2. Section 145 of the Act allows the WCB to create a fund to help meet the demands of any disaster or other circumstances that might unfairly burden employers. The Disaster Reserve serves this purpose.

POLICY

Policy section content
Section detail
  1. The Disaster Reserve has two parts:
    1. Part 1 covers the less severe disasters that would fall under Point 3(a).
    2. Part 2 covers the rare severe disasters that would fall under Point 3(b).
  2. Each part of the Disaster Reserve is set at 1 per cent of benefit liabilities (POL 14/2017, Funding).
  3. The WCB will charge a portion of a claim’s costs to the Disaster Reserve.
    1. For one claim:
      1. The WCB will charge the portion of costs exceeding 10 times above the maximum wage rate at the time of injury to the Disaster Reserve.
    2. For an incident resulting in injury to two or more workers of the same employer:
      1. The WCB will calculate the total costs of the claims. The WCB will then charge the portion of costs 20 times above the maximum wage rate at the time of injury to the Disaster Reserve.
  4. The WCB will provide the maximum amount of cost relief to the employer. When the calculation under Point 3(b) does not benefit the employer, the WCB will consider cost relief for the individual claims.

Conditions

  1. The WCB will charge costs to the Disaster Reserve after considering:
    1. Recoveries (for example, third party recoveries), or
    2. Relief under the Second Injury and Re-employment Reserve or the Occupational Disease Reserve.

Exceptions

  1. An industry or rate group may incur costs that are less than those in 3(a) or (b). The industry or rate group can apply for cost relief. If accepted, the WCB will assign the costs to the Second Injury and Re-Employment Reserve.

Experience Rating

  1. When the WCB provides cost relief, an employer may request to have their previous years’ experience rating reviewed (POL 27/2016, Experience Rating Program – Discounts or Surcharges).

Policy references

Policy reference content

Section heading

Legislative Authority

Section detail

The Workers’ Compensation Act, 2013

Sections 20, 145

Section heading

Document History

Section detail

(1) POL 10/1999, Disaster and Occupational Disease Reserve (effective February 1, 1999 to November 30, 2014).

(2) Board Order 74/80, Application of the Disaster Reserve Fund (effective January 1, 1979).

(3) Board Order 08/73, Disaster Reserve Fund (effective January 1, 1973).

(4) Board Order 43/70, Disaster Reserve (effective December 3, 1970).

Section heading

Complements

Call to action
Two people signing documents
Two people signing documents

Looking for the full policy manual?

Click here to download the WCB’s current Policy and Procedure Manual.

Call to action button
Download full manual