It was reported recently that the Federal Government is reviewing key tests for psychological injury in Workers Compensation, moving from contributing to a "material degree" to a "significant contributing factor". The review was prompted by reports which showed that psychological injuries account for just 7% of claims but 27% of costs.

This change of definition would bring the Commonwealth closer into line with the States who currently have more robust definitions of psychological injuries.

The Workplace Relations Ministerial Council, which includes both Federal and State representatives, is also examining psychological injury issues along with a potential single definition of psychological injury to be used nationally.

While in past years stress claims had been prevalent largely in the Public Sector, the Australian Financial Review quoted in July '05 that Private Sector stress claims have increased by 78%. At the same time, the Australian Chamber of Commerce and Industry reported that costs associated with stress leave have increased by 29% in the Private Sector.

Clearly, when there is a significant rise in stress claims, accompanied by a significant rise in costs, the Insurance Agents administering Workers Compensation schemes require clear strategies to manage the injuries and work towards higher and faster return-to-work rates.

One of the key tools in managing stress claims over the duration of the claim, is a circumstance investigation. By providing an understanding of the events and factors leading up to the claim while facts are fresh and all parties are available, lays the foundation for a Case Manager to effectively manage the claim. These benefits flow through to the employer and injury management providers immediately and, potentially, to the Legal Panel firms in the future.