WSIB raises premium rates for 2003

TORONTO, (Nov. 22, 2002) –The Ontario Trucking Association says it has learned that the industry will be facing a 5.9 per cent increase in Workplace Safety Insurance Board (WSIB) premium rates for 2003 – from $5.61/$100 of assessable payroll to $5.94.

The announcement follows weeks of stakeholder consulations, in which the OTA vehemently opposed a discussed increase of 11 per cent. Although the anticipated rate has been cut nearly in half, OTA remains concerned over increased medical and administrative costs that have occurred in spite of a decrease in loss-time injury claims.

The WSIB cites lower than expected returns on equity investments and rising health care costs as two key external costs that are contributing to the increase. According to the board, health care costs have driven up the average cost of a loss-time injury from $12,223 in 2002 to $14,333 in 2003 – an increase of more than 17 per cent.

OTA says it will continue to pursue a review of the factors contributing to this most recent increase. At the very least, a review of medical and administrative costs should be conducted to ensure that the board, employers, and employees receive value for money. Coverage and revenue leakage concerns should also be discussed, the OTA says.