19 APRIL NEW ZEALAND GAZETTE 905

16.3 An Accredited Employer within the Partnership Discount Plan may elect to be protected from liability in excess of the Limit (with the Manager being responsible for the excess). Such election is to be contained in the Accreditation Agreement or, if not in there, may be exercised by notice in writing to the Manager not less than 1 month before the commencement of the Cover Period to which it relates (such notice being irrevocable). However, cover will be conditional on the Accredited Employer paying the additional premium that then arises.

16.4 For the purpose of this paragraph 16:

(a) “Risk” means:

R = A x B

Where:

R = Risk (in dollars)

A = The premium (expressed as a percentage) that would have been payable in that year by the Accredited Employer if the Accredited Employer were not a member of the Accredited Employers Programme and if there was no safety management practices discount. For the avoidance of doubt the premium is to be calculated without allowance for rebates either under this Framework or performance rebates or discounts or otherwise and without allowance for penalties.

B = Total employee earnings paid by the Accredited Employer in the Cover Period that are liable to be included in the calculation of the premium amount.

(b) The Risk so covered is for the total of all statutory entitlements for which the Accredited Employer is liable arising from all work-related personal injuries of employees of the Accredited Employer in that Cover Period excluding:

(i) Case management expenses; and

(ii) Expenses that would, in any event, be payable by an employer in the same situation but who is not an Accredited Employer (including the first week’s compensation);

but including, where appropriate (for the avoidance of doubt):

(iii) Liabilities arising under paragraph 10.1(b).

16.5 If, in respect of any Cover Period, an Accredited Employer is or is likely to exceed the Limit it must immediately notify the Manager in writing of that together with full details of:

(a) Claimants;

(b) Payments made;

(c) Payments anticipated to be made;

(d) The amount of earnings already paid in the Cover Period and the amount of earnings expected to be paid in the remainder of that Cover Period (being earnings that are used to calculated “B” in the formula in paragraph 16.4(a)); and

(e) Any special circumstances giving rise to the Limit being, or being likely to be, exceeded,
together with such further information as the Manager may, from time to time, thereafter require.

16.6 For the purposes of calculating if the Limit is or is likely to be exceeded for Accredited Employers in the Full Self Cover Plan, future liabilities are to be calculated in the same way as is set out in paragraphs 10.2, 10.3 and 10.5.

16.7 Notwithstanding that the Manager is notified that the Limit is or is likely to be exceeded:

(a) The Accredited Employer must remain liable up to the Limit and is to continue to be responsible for case management for the remaining Claim Management Period; and

(b) If the claims expenses then incurred by the Accredited Employer (being expenses that are included in the calculation of the Limit) exceed the Limit then, at the end of the Claim Management Period or such earlier date as may be agreed between the Accredited Employer and the Manager, the Manager must reimburse the Accredited Employer for any expenses over the Limit for which it is liable within one month of being provided with satisfactory evidence that such expenses have been actually incurred.

16.8 The Accredited Employer must agree that the Manager may, at any time, require a certificate from the auditor of the Accredited Employer as to any of the matters set out in paragraphs 16.4(a) (definition of “B”), 16.5 16.6 and 16.7(b) and that the Accredited Employer will then provide such certificate or, failing that, may remain liable to make the payments required by the Accreditation Agreement as though the provisions of this paragraph 16 do not apply.

17. Incompatibility of Private Insurance

17.1 An important concept behind the Accredited Employer Programme is that Accredited Employers are to have a direct financial interest in maintaining their standards of workplace safety and in integrating injured employees back into the work force. For an Accredited Employer to enter into a private insurance agreement or a reinsurance agreement or a guarantee or other instrument which removes from the Accredited Employer any of the risks it has under its Accreditation Agreement is inconsistent with the objectives of the Accredited Employers Programme. Accordingly, an Accredited Employer must agree not to enter into any contract or arrangement which removes all or any part of the financial responsibility such Accredited