If the effective start date of your existing MI policy is before 1 July 2023, you can remain on the existing MI with $15,000 coverage.
However, at your next policy purchase, renewal or extension, you must ensure your policy meets the following:
- Stage 1 requirements for all policies with start dates effective from 1 July 2023
- Stage 2 requirements for all policies with start dates effective from 1 July 2025.
If you have existing MI policies that are longer than a 2-year term, you must ensure that your workers are covered under:
- Stage 1 requirements by 30 June 2025
- Stage 2 requirements by 30 June 2027
Please see below for some examples:
Employer A signs an MI with $15,000 coverage effective on 1 May 2023. The MI is a 1-year plan, due for renewal on 30 April 2024.
In this case, Employer A may choose to remain on the existing $15,000 MI coverage until 30 April 2024. However, at the next renewal (i.e., from 1 May 2024 onwards), Employer A must purchase an MI policy that minimally complies with Stage 1 requirements since the effective start date of the policy is after 1 July 2023.
Employer B signs an MI with $15,000 coverage effective on 1 May 2023. The MI is a 3-year plan, due for renewal on 30 April 2026.
In this case, Employer B can choose to remain on the existing $15,000 MI in the interim, but must complete transition to Stage 1 requirement by 30 June 2025.