The Financial Undertaking (also known as a bank guarantee) provides the Board with security from an approved financial institution should you be unable to meet your workers compensation obligations. In this event, the Nominal Insurer will seek to recover the necessary funds by calling on the Financial Undertaking.
A Financial Undertaking generally needs to be secured after you have been granted provisional approval.
The amount of the Financial Undertaking to be provided is determined using an approved methodology.
About the approved financial institution
An approved financial institution must be:
- registered by the Australian Prudential Regulation Authority as an Authorised Deposit Taking Institution
- an authorised Deposit Taking Institution for the purpose of the Banking Act 1959.
What to submit
Submit the Financial Undertaking form (DOC, 38.5 KB)
Completing the Financial Undertaking
The approved financial institution you use must complete the details in Schedule 1 of the Financial Undertaking as follows:
- Item 1: insert the ABN of the approved financial institution
- Item 2: insert the branch address of the approved financial institution
- Item 3: insert the title of the person at the approved financial institution that the Financial Undertaking would be served to if called on
- Item 4: insert your full name, ABN and address
- Item 6: insert the full amount of the Financial Undertaking.
The Financial Undertaking must be signed and dated by the person with the necessary authority at the approved financial institution. Schedule 1 must be initialled by the authorised person. It is advised that a draft copy of the Financial Undertaking be provided to WorkCover for approval prior to execution.
The Financial Undertaking must be reviewed annually by a certified actuary.
The actuarial report must be submitted to the Board within 3 months of the conclusion of your financial year.
The Board will advise if the amount of the Financial Undertaking is insufficient and if a new one needs to be secured.
Following each annual review, you must submit the Financial Undertaking via the online WorkCover Information Management System (WIMS) within 3 months of the conclusion of your financial year. See the WIMS user manual for details.