Document name

Disaster Reserve

Document number

PRO 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

The Workers’ Compensation Board (WCB) has approved POL 12/2014, Disaster Reserve.
This procedure provides rules on how to apply POL 12/2014.

PROCEDURE

An employer may incur high claim costs from a disaster. The WCB can charge a portion of the claim costs to the Disaster Reserve.
The Disaster Reserve will be charged costs based on the net costs of a claim. In determining the net costs, Operations staff will consider all relevant:
1. Recoveries (for example, third party recoveries), or
2. Relief under the Second Injury and Re-employment Reserve or the Occupational Disease Reserve.
For one claim:

The WCB claims computer system will transfer costs 10 times above the maximum wage rate at the time of injury to the Disaster Reserve.

For an incident resulting in injury to two or more workers of the same employer:

Information Technology Services (ITS) and Operations staff will find and link claims caused by the same incident. The computer system will transfer costs 20 times above the maximum wage rate at the time of injury to the Disaster Reserve.

The WCB will provide the maximum amount of cost relief to the employer. When the calculation under Point 4 does not benefit the employer, the WCB will consider cost relief for the individual claims.
Operations staff will advise the employer, in writing, of all decisions regarding cost relief.
When the WCB provides cost relief, an employer may request to have their previous years’ experience rating reviewed by a Quantitative Research Analyst (POL 27/2016, Experience Rating Program – Discounts or Surcharges).