Case Summary : Decision-Making Process

Employer departure premium

An employer decided to cancel its voluntary WSIB insurance coverage after more than 27 years with no lost-time injuries. The WSIB applied a departure premium based on the employer’s entry into the system in 1965.

The employer was concerned with the lack of notice about the premium. The WSIB’s departure premium policy was implemented in December 1997 but was not sent to employers currently in the system.

The employer was also concerned about how the premium was calculated. The calculation was prepared using the 1965 entry date rather than 1997 when the policy came into effect. The departure premium was almost double the employer’s annual premium.

The Commission made inquiries with the employer’s account advisor, the revenue specialist, the assistant director of policy and the sector director.

The sector director was concerned about the lack of notice. The director compared the cost of the premiums paid by the employer since 1965 to the employer’s accident costs, concluded it was unfair to charge the departure premium, and cancelled it.

(November 2007)