Injured government workers short-changed in their workers compensation payments due to Comcare miscalculations do not currently have access to an appropriate means of redress, a Commonwealth Ombudsman investigation has revealed.

Releasing the findings today, Acting Ombudsman Mr Ron Brent referred to the cases of ‘Ms A’ and ‘Mr B’, who suffered significant financial hardship because Comcare did not discover its miscalculations for 10 years and 13 years respectively.

‘Due to their work-related injuries, claimants can be particularly vulnerable and not in the best position to assess the accuracy of Comcare’s calculations at the time of payment,’ Mr Brent said. ‘They should be able to trust that Comcare will detect fundamental errors and that they will do so within a reasonable timeframe.

‘However, even though Mr B raised concerns with Comcare several times throughout the 13 years that he was underpaid, Comcare did not review its calculations because he did not put the concerns in writing.

‘The problem was exacerbated because neither Comcare nor the Department of Finance and Deregulation (Finance) has in place a direct mechanism to compensate people in such circumstances, or even to pay interest on the funds owed.’

Mr Brent explained that the legislation under which Comcare operates does not allow its clients to make claims under the Compensation for Detriment caused by Defective Administration (CDDA) scheme, which covers most Australian Government agencies. Nor are they eligible to apply to Finance for an act of grace payment.

‘However, there are some circumstances in which it is entirely reasonable to expect a person to be able to seek compensation outside the confines of the review options currently available,’ he said.

As a result of the Ombudsman’s investigation, Comcare has determined the value of the loss suffered by Ms A and arranged for her to be compensated via her original employer.

Mr B’s situation is more complicated, but based on independent actuarial advice regarding his financial loss, he will be compensated through various means, including a discretionary payment under the Public Service Act 1999.

Further, Comcare and Finance have undertaken to work together to establish a scheme similar to CDDA that will allow authorities in a legislative position similar to Comcare to deal with claims for compensation arising from defective administration.

Mr Brent commended the two agencies for the positive action they have taken in response to the Ombudsman’s investigation and recommendations.

Download the report: 04|2010 — Comcare and Department of Finance and Deregulation: Discretionary payments of compensation, March 2010

Media contact: Media 02 6276 3759

Date of release: 24 March 2010

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      24 Mar 2010: Underpaid Comcare clients entitled to reparation

      Injured government workers short-changed in their workers compensation payments due to Comcare miscalculations do not currently have access to an appropriate means of redress, a Commonwealth Ombudsman investigation has revealed.

      Releasing the findings today, Acting Ombudsman Mr Ron Brent referred to the cases of ‘Ms A’ and ‘Mr B’, who suffered significant financial hardship because Comcare did not discover its miscalculations for 10 years and 13 years respectively.

      ‘Due to their work-related injuries, claimants can be particularly vulnerable and not in the best position to assess the accuracy of Comcare’s calculations at the time of payment,’ Mr Brent said. ‘They should be able to trust that Comcare will detect fundamental errors and that they will do so within a reasonable timeframe.

      ‘However, even though Mr B raised concerns with Comcare several times throughout the 13 years that he was underpaid, Comcare did not review its calculations because he did not put the concerns in writing.

      ‘The problem was exacerbated because neither Comcare nor the Department of Finance and Deregulation (Finance) has in place a direct mechanism to compensate people in such circumstances, or even to pay interest on the funds owed.’

      Mr Brent explained that the legislation under which Comcare operates does not allow its clients to make claims under the Compensation for Detriment caused by Defective Administration (CDDA) scheme, which covers most Australian Government agencies. Nor are they eligible to apply to Finance for an act of grace payment.

      ‘However, there are some circumstances in which it is entirely reasonable to expect a person to be able to seek compensation outside the confines of the review options currently available,’ he said.

      As a result of the Ombudsman’s investigation, Comcare has determined the value of the loss suffered by Ms A and arranged for her to be compensated via her original employer.

      Mr B’s situation is more complicated, but based on independent actuarial advice regarding his financial loss, he will be compensated through various means, including a discretionary payment under the Public Service Act 1999.

      Further, Comcare and Finance have undertaken to work together to establish a scheme similar to CDDA that will allow authorities in a legislative position similar to Comcare to deal with claims for compensation arising from defective administration.

      Mr Brent commended the two agencies for the positive action they have taken in response to the Ombudsman’s investigation and recommendations.

      Download the report: 04|2010 — Comcare and Department of Finance and Deregulation: Discretionary payments of compensation, March 2010

      Media contact: Media 02 6276 3759

      Date of release: 24 March 2010