WorkCover WA has released a position statement on what it
described as an "emerging demand by principals in large
scale projects seeking broad workers' compensation policy
extensions to the traditional 'upward indemnity' from
contractor to principal" in major project contracts.
WorkCover WA was concerned at the proliferation of 'sideways
indemnities' being demanded on such projects by way of mutual
indemnity and hold harmless schemes, accompanied by waivers of
rights of subrogation, where the intention was for each party to a
contract to bear the cost and not seek recovery or contribution
from the other parties.
It noted that the Workers' Compensation and Injury
Management Act 1981 (WA) contained specific insurance
obligations for common law rights and certain statutory rights of
recovery and said it considered mutual indemnity agreements of the
nature described above were not contemplated by the Act and so
threatened the viability of the WA workers'
