It has been two years since COVID hit Australia, bringing with it ever-changing restrictions and overall uncertainty. But there was a silver lining to the pandemic for Josh Day, founder of...
In the blink of an eye, your entire world could dramatically change. You could receive a lucrative new client or even win the lottery. However, you could also find yourself in a traumatic work-related incident that has a significant impact on your ability to continue to work.
We all love to dream about how our life would positively change if we did receive a new opportunity or win the lottery. But despite hearing constant stories of accidents and incidents occurring in the workplace or at home, we may think, “That won’t happen to me”. It may even surprise you that, according to Safe Work Australia, there were 4.6 fatalities per 100,000 labourers in 20171. This means that you have a better chance of experiencing a work-related incident as opposed to winning a share in the Australian Powerball Jackpot lottery at a 1 in 76,767,600 chance2.
From slipping on tiles to falling from ladders, workplace injuries are sometimes unavoidable. While safe work practices can be implemented to minimise the risk of injury on the job site, many plumbers still find themselves the victim of injury. These injuries could result in a loss of income or business, should you find yourself unable to work. In fact, Safe Work Australia reported that in 2014-2015 the median compensation paid to labourers as a result of serious claims was $9,800, representing a 123% increase since 2000-20013. So, how can you avoid finding yourself in hot water (sorry - that was too easy), should a serious injury or accident unfortunately occur?
A Personal Accident and Illness policy may provide peace of mind in the event of workplace injuries or illness. Such policies could minimise the financial burden caused by a long-term absence from work. Should an incident occur, your income may be protected with a specified weekly benefit, generally equating to 75% of your normal income. Depending on your chosen policy, you also have the option of either a 52 or 104 week benefit period to provide enough coverage in the event that workplace accidents or illnesses result in long term absenteeism from the job site. Like any policy, waiting periods and exclusions may apply. It is advised that you read the PDS and discuss your individual needs with our brokers prior to taking out cover. While some individuals may think they can rely on their superannuation to help ease the financial pressure if they unexpectedly become victim to a workplace injury or illness, it is important to be aware that this is only the case under the provision that such protection is incorporated within their superannuation. If such assistance is attainable through one’s superannuation, it is mandatory to meet one of the strict conditions of release as per the Superannuation Industry (Supervision) Act 1993 in order to qualify for payment. Comparing Expert also suggests that if these conditions are met, there is a possibility that you may be underinsured, meaning that you may not be sufficiently covered during your time off work4.
Even more pertinent, as the financial year draws to an end, you may not be aware that you can generally claim the cost of the premiums that you pay for a Personal Accident and Illness Insurance policy against the loss of your income, as advised by the Australian Taxation Office5. In saying this, a deduction cannot be claimed for a policy that provides compensation for a physical injury or if the policy is taken out through superannuation. You should check with your tax agent to confirm.
In the blink of an eye, your whole world could dramatically change. However, you could be covered for Personal Accident and Illness by Masters Plumbers Insurance Brokers. For more information or a quotation, please contact us on 1300 300 511.
1 https://www.safeworkaustralia.gov.au/book/ work-related-injury-fatalities-key-whsstatistics- australia-2018
2 https://www.sbs.com.au/news/one-mathslecturer- on-whether-you-should-enterpowerball
3 https://www.safeworkaustralia.gov.au and search workers compensation statistics 2015-16
4 https://www.comparingexpert.com.au/ income-protection/through-super/
5 https://www.ato.gov.au/individuals/incomeand- deductions/deductions-you-can-claim/ other-deductions/income-protectioninsurance/
Notice: Master Plumbers Insurance Brokers (Aust) (MPIB) is a trading name of Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369). MPIB arranges the insurance and is not the insurer. This article contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Advantage on request. The Master Plumbers and Mechanical Services Association of Australia (MPMSAA) receives a financial benefit when a policy is arranged by Marsh Advantage, enabling it to continue to provide further services to the plumbing industry. LCPA: 18/0074