The target premium rate has been set at 3.5%, slightly lower than the 2010-11 rate of 3.6%.

Premium rates have fallen from a high of 11.5% in 2002-03 to the current rate, Coal Services’ chief executive Mark Coyne said.

“A continued focus on occupational health and safety and durable return to work practices by NSW coal mine operators and contractors has contributed to a sustainable premium level,” he said.

“We have been working hard to improve our engagement and interaction with our stakeholders, and to demonstrate the value that a specialised insurer can offer to the industry.”

NSW Minerals Council CEO Dr Nikki Williams applauded the continued improvement in workplace safety at NSW coal mines.

“New South Wales mining companies and their employees are to be congratulated on continuing to improve workplace health and safety. It is heartening to see those improvements now beginning to be reflected in reduced workers compensation premium rates,” she said.

General president of the Construction, Forestry, Mining and Energy Union Tony Maher also expressed his support of the result.

“Our workers are our industry’s most important asset,” he said.

One of the initiatives in place to support improved occupational health and safety measures is the Premium Incentive Scheme operated by Coal Mines Insurance (a division of Coal Services).

A key component of the incentive scheme is for an employer to have their injury management systems reviewed.

Following this review, mine operators are provided with a report on how their operation is positioned, and evidence-based recommendations for improvement where appropriate are provided.

“Coal Services paid $6.8 million in incentive payments to policyholders last year. Participation by industry in the incentive scheme is a reflection of the commitment by mine operators to continually improve injury prevention and injury management systems within the industry for mine workers,” Coyne said.

The NSW Minerals Council and the CFMEU are both stakeholders in Coal Services.