Most injuries happen at home, not work
FOR ADVISER USE ONLY
The latest injury statistics are a stark reminder that accidents can happen anywhere, but are less likely to happen at work, making it critically important to hold comprehensive life insurance including income protection.
Income protection insurance provides invaluable financial protection against disability as a result of sickness or injury by paying a regular benefit to replace lost income if a person is unable to work.
It can offer superior coverage to Workers' Compensation because it is designed to pay a benefit even if the sickness or injury happens at work, the home or elsewhere (subject to product details and cover type).
Workers Compensation is governed by individual states and territories. In NSW, for Workers’ Compensation to be payable, there must be a real and substantial connection between employment and the accident or incident which resulted in the injury.1
This means that in NSW, if an employee is injured travelling to and from work, they will need to prove a real and substantial connection between the employment and the accident or incident out of which the personal injury arose, to be entitled to claim compensation. For exempt workers (e.g. police officer’s, paramedic’s and fire fighters) there is no requirement to establish a real and substantial connection2.
Under those narrow terms, many Australians may face financial disaster if they rely on Workers’ Compensation alone for protection, given the majority of major accidents and injuries occur in a person’s home or during their leisure time.
In 2021/2022, 3.5% of Australia’s working population (approximately 497,300 people) suffered a work-related injury or illness and only 31% of those (approximately 150,000 people) received workers’ compensation, according to the Australian Bureau of Statistics’ (ABS) Work-related Injuries Report.3
By contrast, of the 8.8 million Australians presented to emergency departments in 2022-23, more than half related to injuries that occurred in the home, based on data from the Australian Institute of Health and Welfare (AIHW).3
The most common injuries involved DIY home renovations such as falling from ladders and mishaps using tools and machinery.
Around nine Australians are admitted to hospital for DIY injuries per day. Patients are predominately men between the ages of 55 and 74.3
Other major causes of hospitalisation included motor vehicle accidents, and sports and recreation injuries.
While a record low number of sports and recreational injuries were reported in 2020, coinciding with COVID-19, sports-related injuries are on the rise again, with outdoor team sports recording the highest rate of injury and cycling reporting the highest number of hospitalisations.4
This is not surprising given 89% of Australians over age 15 (approximately 18.8 million people) play sport, according to the 2020-21 AIHW AusPlay Survey.4
The statistics are a stark reminder that accidents and injuries can happen anywhere, at any time, making it critically important to hold comprehensive life insurance including income protection.
Jenna and Zaneta’s stories
In 2022, Australian life insurers paid $3.7 billion in income protection insurance entitlements, representing a third of total claims paid of $11.2 billion.5
More than a third of Australians hold some income protection insurance and, every year, thousands of Australians receive income protection benefits.
Among them is Jenna from Queensland who learned she had a mass on her brain, during a routine medical check-up.
Jenna’s health deteriorated quickly and she had to stop working to undergo surgery and treatment. With a mortgage and a baby on the way, Jenna was fortunate that she had taken out an income protection policy years earlier, on the recommendation of her financial adviser.
Her insurance provided a regular income stream to relieve some of the financial pressure and enable her to focus on her health and recovery.
Similarly, Zaneta was forced to stop work due to complications arising from pregnancy. Zaneta also held income protection insurance, which she says saved her family from “financial disaster”.
Read about Jenna and Zaneta’s stories here.
Both Jenna and Zaneta would not have been covered if they had relied on Workers’ Compensation insurance, as neither were injured or became ill during the course of work.
For more information about ClearView ClearChoice Income Protection Insurance, please contact your Business Development Manager.
1. Workers Compensation Act 1987 (NSW) s 10 (3A)
2. https://www.icare.nsw.gov.au/injured-or-ill-people/workplace-injuries/payments/work-break-or-journey-payments#gref
3. https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/work-related-injuries/latest-release
4. https://www.aihw.gov.au/reports/injury/injury-in-australia/contents/about
5. https://www.aihw.gov.au/reports/sports-injury/sports-injury-in-australia/contents/sports-participation-and-injury-rates
6. https://cali.org.au/wp-content/uploads/2024/01/CALI-A5-Booklet-Digital.pdf
This document is prepared by ClearView Life Assurance Limited (ABN 12 000 021 581, AFSL 227682) (ClearView) and is for advisers only. The information is general in nature, it does not take into account your objectives, financial situation or needs. Before determining whether to apply for or hold the product(s) you should read the Product Disclosure Statement (PDS) and consider the appropriateness of the product(s) to your circumstances. A copy of the PDS can be obtained from 132 977 or on our website clearview.com.au/pds. If relevant, information about the Target Market Determination(s) for this product(s) is available at www.clearview.com.au/tmd.
ClearView ClearChoice is issued by ClearView Life Assurance Limited (ABN 12 000 021 581, AFSL 227682 and ClearView ClearChoice Super is issued by HTFS Nominees Limited Pty Limited ABN 78 000 880 553, AFSL 232500, RSE Licence L0003216 as trustee of HUB24 Super Fund, ABN 60 910 190 523, RSE R1074659 (Trustee). ClearView ClearChoice Super Rollover is issued by the Trustee. All benefits are paid in accordance with policy terms and conditions. Premiums, regardless of premium type, are not guaranteed and may be increased or decreased in the future. Please refer to the ‘Premiums and Other Costs’ section of the relevant PDS for more information. Any representations regarding past performance are not indicators of future returns and/or performance. This information does not in any way constitute tax, legal or health advice. Before relying on this information, you should seek independent expert advice. To the extent that law permits, ClearView, its directors, officers and employees do not make any representation as to the accuracy of any non-ClearView websites or articles referenced and excludes any liability to any person in relation to the document’s use or its content, including any modification, error or omission in the document however caused. This document is current as at the date of publication. ClearView can vary or withdraw this document at any time. You should always check with ClearView to confirm that this document is up to date.
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