XN000022-1985-11-20 — Page 8

WEDNESDAY, NOVEMBER 20, 1985

SINCE THE PRESENT LEVELS HAD BEEN IN FORCE SINCE JULY 1983, A FURTHER REVISION WAS NOW DUE, HE SAID.

+TO GIVE INSURERS SUFFICIENT TIME TO MAKE ADJUSTMENTS TO THE IR RATES OF PREMIUM, IT IS PROPOSED TO BRING THE REVISED LEVELS OF COMPENSATION INTO FORCE ON JANUARY 1, 1986,+ HE NOTED.

MR HENDERSON SAID THE BASIS FOR THE PROPOSED 23.5 PER CENT WAS THE 15.6 PER CENT INCREASE IN OVERALL WAGE RATES, ACCORDING TO THE CENSUS AND STATISTICS DEPARTMENT, BETWEEN MARCH 1983 THE DATE AGAINST WHICH THE PRESENT LEVELS OF COMPENSATION WERE SET- AND MARCH 1985,

HE ADDED: +THE PRESENT LEVELS OF COMPENSATION WERE SET ON THE BASIS OF CALCULATIONS MADE SEVERAL MONTHS BEFORE THEIR INTRODUCTION WHICH UNDERESTIMATED THE INCREASE IN WAGE RATES IN THE MEANTIME.

+ALLOWING THEREFORE FOR AN ADJUSTMENT TO CORRECT THIS UNDERESTIMATION AND ASSUMING A FURTHER FIVE PER CENT INCREASE IN OVERALL WAGE RATES BETWEEN MARCH 1985 AND JANUARY 1986, COMPENSATION LEVELS SHOULD BE SET, WITH EFFECT FROM JANUARY 1986, 23.5 PER CENT HIGHER THAN AT PRESENT.+

MR HENDERSON SAID ACCORDINGLY, IT WAS PROPOSED TO RAISE THE MAXIMUM AMOUNTS OF COMPENSATION FOR DEATH AND FOR PERMANENT TOTAL INCAPACITY FROM $242 000 TO $299 000- AND FROM $276 000 TO $341 000 RESPECTIVELY; AND THE MINIMUM AMOUNTS FROM $81 000 TO $100 000 AND FROM $92 000 TO $114 000 RESPECTIVELY.

COMPENSATION FOR THE NEED FOR CONSTANT ATTENTION WOULD ALSO BE RAISED FROM $111 000 TO $137 000.

A SIMILAR INCREASE WAS PROPOSED IN THE MAXIMUM PAYMENTS TO BE MADE BY AN EMPLOYER TOWARDS THE COSTS OF SUPPLYING AND FITTING A PROSTHESIS OF A SURGICAL APPLIANCE AND FOR ITS REPAIR OR RENEWAL.

THE PRESENT AMOUNTS OF $10 000 AND $30 000 WOULD ACCORDINGLY BE RAISED TO $12 000 AND $37 000, MR HENDERSON NOTED.

HE SAID THE MAXIMUM DAILY RATES PAYABLE BY THE EMPLOYER FOR, RESPECTIVELY, HOSPITAL STAY AND OUT-PATIENT TREATMENT FOR AN EMPLOYEE RECEIVING MEDICAL TREATMENT ALSO REQUIRED ADJUSTMENT TO TAKE INTO ACCOUNT RECENT INCREASES IN THE DAILY CHARGES OF GOVERNMENT AND SUBVENTED HOSPITALS.

+THESE RATES HAVE NOT BEEN ADJUSTED SINCE 1977 AND ACCORDINGLY A RATHER HIGHER LEVEL OF INCREASE IS PROPOSED, FROM $20 TO $30 FOR EACH DAY OF STAY IN A HOSPITAL AND FROM $10 TO $15 FOR EACH DAY OF OUT-PATIENT TREATMENT.

/+THE REVISED