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Dropping Your Ice Cream: The Workers Comp Equivalent




There’s nothing worse than a dropped ice cream.

But when I look at the Victorian WorkCover industry rates for 2018/19, there’s a sad sight.

The ice cream manufacturing industry rate has increased for the fifth year in a row. That’s bad enough. What makes it worse is that the Industry Claims Cost Rate (ICCR) has fallen for the third year in a row. Tragic.

Why is that a bad thing?

Well, the way Victorian WorkCover premiums work is that you have three main factors. The first is how much an employer pays in wages. The second is the industry rate of the industry they operate in. The third is how the employer’s claims performance compares against their industry. That is measured using the ICCR.

All things being equal, if an industry rate increases, but ICCR stays the same and the employer’s performance stays the same, their premium will go up a bit.

If the industry rate stays the same, and the employer’s performance stays the same, but the ICCR goes down, the premium will go up a bit. That’s because the employer’s performance will look worse compared to an improving industry.

When an industry rate goes up, and the ICCR goes down, and an employer’s performance stays the same, you get the worst of both worlds.

The premium equivalent of an ice cream dropped on the footpath.

It’s not overly common but has happened in the ice cream manufacturing industry for the last three years. It’s enough to make an ice cream lover cry.


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