The target premium collection rate for 2018-19 is

3.35%

Pricing and calculation

Policy premiums are collected to cover the cost of claims and associated expenses when someone is injured at work.

The premium you pay for your workers compensation policy is determined by a number of different factors.

These include:

Calculating your premium

Your base premium is determined by multiplying your wages by your premium risk category rate. That premium is then adjusted for your size (based on your wage roll) and finally, discounted or increased based on how your claims experience compares to the other employers in your risk category.

Your premium calculation sheet that is sent with your renewal notice each year clearly sets out the premium formula and enables you to see how your performance compares to others in your premium risk category or categories. It also provides you with a clearer view of how your own injury prevention and injury management performance affects your final premium rate.

The minimum premium rate

The minimum premium rate ensures all employers pay their fair share of the Scheme’s administration costs. This includes the fixed costs of underwriting each policy and other non-claim related expenses.

For the 2018-19 policy year the minimum premium rate is set at 0.85 per cent.

Premium categories that reflect your risk

Coal Mines Insurance (CMI) allocates covered wages to six premium risk categories that best reflect the specific risk exposures associated with different activities undertaken across the coal industry.

As part of CMI’s continued commitment to provide a fair and sustainable scheme; we introduced multi-category policy options for all policies renewing on or after 30 June 2017. The multi-category policy model allows policyholders to declare wages in more than one premium risk category and have their final policy premium rate calculated on that basis. This means that your policy premium rate will be closely aligned to the overall risk profile of your business.

Questions to ask yourself when determining your risk category(ies):

  • What are my day to day business activities whilst on a coal mine?
  • Where on a mine site are my activities performed? e.g. underground, in the pit of an open cut mine, coal preparation plant, workshop, office etc.
  • If my business activities are performed in different areas of a mine site or both on and off a mine site, how much time do I spend on each activity?
  • What activities do I perform whilst not on a coal mine that is related to the coal mining industry?
CMI risk categories

 

Premium risk category Description
Open Cut Mine All activities undertaken by operators, contractors and labour hire in the pit and surrounding areas of an open cut mine site.

Activities include:

  • Repair, maintenance and inspection of open cut machinery and equipment
  • Dragline and excavator operations
  • Haul truck, water cart, dozer, grader, loader and light vehicle operations
  • Explosives/shotfiring activities
  • Blasting/drilling operations
  • Installation, maintenance and inspection of pumping systems
  • Engineering and mining technician activities
  • Installation, maintenance and inspection of electrical systems
  • Supervision and training of staff on open cut mines
  • Consultants who go onto mine sites to inspect, collect samples and provide advice
  • Mine site facility constructions
  • Site preparation and earth moving
  • Mine site rehabilitation
  • Open Cut not elsewhere classified (NEC) – activities conducted on an open cut mine NEC.
Underground Mine All activities undertaken by operators, contractors and labour hire in the pit and surrounding areas of an underground mine site.

Activities include:

  • Development mining operations
  • Longwall mining operations
  • Installation, maintenance and inspection of ventilation systems
  • Installation, maintenance and inspection of water and air systems
  • Installation, maintenance and inspection of pumping systems
  • Installation, maintenance and inspection of conveyor systems
  • Operation, repair, maintenance and inspection of underground machinery and equipment (not carried out in a workshop)
  • Installation, maintenance and inspection of electrical systems
  • Conducting drilling operations
  • Conducting shotfiring operations
  • Engineering and mining technician activities
  • Material handling operations
  • Supervision and training of staff on underground mines
  • Consultants who go underground to inspect, collect samples and provide consultancy
  • Mine site facility constructions
  • Site preparation and earth moving
  • Mine site rehabilitation
  • Underground not elsewhere classified (NEC) – activities conducted on an underground mine NEC
Onsite Operational Mining Services All activities undertaken in workshops, coal preparation plants, coal washeries, coal loaders ON a mine site and general activities listed below.

Activities include:

  • Coal preparation plant/washery operation
  • Coal preparation plant/washery repair and maintenance
  • Installation, maintenance and inspection of electrical systems
  • Operation, repair, maintenance and inspection of mining machinery and equipment in workshops, located on a mine site
  • Supervision activities in workshops, coal preparation plants, coal washeries, coal loaders
  • Coal transport – train drivers
  • Mine site facility constructions
  • General cleaning activities
  • General security services
  • Physiotherapy services to injured miners
  • Drug and alcohol testing pre-screen
  • Pest control services
  • Track maintenance and fencing services
  • Weed and feral management
  • Onsite Operational Mining Services not elsewhere classified (NEC) – activities conducted in an onsite workshop/coal preparation plant/coal washery NEC
Offsite Operational Mining Services All activities undertaken in workshops, coal preparation plants, coal washeries, coal loaders NOT ON a mine site and general offsite area activities listed below.

Activities include:

  • Coal preparation plant/washery operation
  • Coal preparation plant/washery repair and maintenance
  • Operation, repair, maintenance and inspection of mining machinery and equipment in workshops
  • Supervision activities in workshops, coal preparation plants, coal washeries, coal loaders
  • Pest control services offsite related to running a coal mine
  • Track maintenance and fencing services offsite related to running a coal mine
  • Weed and feral management offsite related to running a coal mine
  • Offsite Operational Mining Services not elsewhere classified (NEC) – activities conducted in an offsite workshop/coal preparation plant/coal washery NEC
Onsite Administration All activities undertaken in an office building ON a coal mine site.

Activities include:

  • Administration activities carried out in an office building on a mine site
  • Consultancy activities carried out in an office building on a mine site
  • Training activities carried out in an office building on a mine site
  • Information Technology activities carried out in an office building on a mine site
  • Project work carried out in an office building on a mine site
  • Onsite Administration not elsewhere classified (NEC) – activities conducted in an office building on a coal mine site NEC
Offsite Administration Administration activities undertaken in an office building NOT ON a mine site related to the running of a coal mine.

Activities include:

  • Administration activities carried out in an office building not on a mine site
  • Consultancy activities carried out in an office building not on a mine site
  • Laboratory and testing carried out in an office building not on a mine site
  • Information Technology activities carried out in an office building not on a mine site
  • Offsite Administration not elsewhere classified (NEC) – activities conducted in an office building not on a coal mine site NEC
Business activity exclusion list

Activities carried out on a coal mine site NOT required to hold a policy with CMI.

 Activities include:

  • Delivery services (e.g. fuel, equipment, general deliveries)
  • Servicing of office equipment (e.g. printers, photocopiers, computers, food vending machines)
  • Visits to a mine site (e.g. by insurance brokers, solicitors, accountants)
  • Heritage work conducted by Aboriginal land councils
  • Residential noise monitoring not related to running a coal mine
  • Environmental water monitoring not related to running a coal mine
  • National power line constructions through a mine site
Business activity list added since the change to the CI Act

Activities include:

  • Construction work on a mine site
  • Drilling Services, including exploration drilling
  • Mine site rehabilitation
  • Earth moving, Site Preparation, Excavation services
  • Coal Train Drivers/ Assistants
  • Erecting and Dismantling Scaffolding
  • Cleaning Services (admin building, Bath House, Lunch rooms Pit facilities)