NDIS Scheme – How it Helps Australians with Disabilities and Care Providers

People living with disabilities need support not just from their families but also from care providers who specialise in caring for them. In 2013, the Australian government rolled out the National Disability Insurance Scheme (NDIS), which continues to serve today by providing over $22 billion in funding to about 500,000 Australians living with disabilities, many of whom receiving support for the first time yet.

What is the NDIS?

The NDIS is designed to provide support through funding to eligible individuals, called participants, who have psychosocial, cognitive, sensory, physical, and intellectual disabilities. For children with developmental delay, the NDIS also offers early intervention supports. The scheme is not a welfare system, which means that it supports the beneficiaries so that their skills and independence develop over time.

Every NDIS participant has an individual plan that lists their desired outcomes with the kinds of supports they will use with the funding they have received. Care providers serve as the participants’ main contact points and deliver services that help participants carry out their plans.

Types of Support

The NDIS provides funding to participants for support and services aimed at increasing their independence, inclusion, and social and economic participation. The NDIS may fund the following types of supports falling under these three categories:

Core

A support that helps a participant complete daily living activities. (e.g., assistance with household tasks for them to maintain the cleanliness of their homes)

Capital

A support for an investment, such as assistive technologies, equipment and home or vehicle modifications, or funding for capital costs (e.g., to pay for Specialist Disability Accommodation).

Capacity Building

A support that helps a participant build their independence and skills. (e.g., transporting them to their workplace)

To learn more about the services and supports delivered under NDIS, visit this page.

How NDIS Helps Carers

Carers play a vital role in the care of people living with disabilities. They provide the emotional and practical care that enables participants to live their best life. As the best advocates for the disabled community, the NDIS recognises the importance of ensuring that carers also taken care of. The NDIS does this by allowing providers to receive funding for the use of facilitating respite.

Respite, or respite care, allows a primary carer to take breaks from their role while someone else steps in to continue performing their duties while they are away. This means that care providers can take better care of themselves physically, mentally, and emotionally to ensure that they perform their tasks and responsibilities in the best way possible (Learn more about Respite Care Services).

For a participant, this might mean:

• Joining a new community group
• Having a short stay out of home to try new things, make new friends or develop new skills.
• Temporary periods of extra personal supports so that the participant can remain at home when families and/or carers are not available
• Support to participate in community activities, resulting in a break for carers.

Insurance for NDIS Providers

The NDIS has enabled more Australians living with disabilities to engage the services and support of care providers. The latter must understand the risks associated with their job and get the right care provider insurance cover to protect them from the implications of these risks. Whether they are employed, self-employed, or running a business, they should take out the necessary insurance for protection.

• Public and Products Liability Insurance provides protection for legal defense costs and awards/settlements, if there is an allegation of negligence arising from a company’s business activities that led to an injury to a third-party or property damage.
• Professional Indemnity Insurance provides cover for alleged acts, errors or omissions arising from professional negligence or breach of duty that results in property damage, personal injury, and/or financial loss to the person cared for or a third party.
• Worker’s Compensation Insurance protects employees from work-related injuries and illnesses. If an employee is injured at work, this insurance covers their loss of earnings, medical expenses, and rehabilitation. It is compulsory for business owners in all states and territories in Australia to cover all their employees.
• Personal Accident Insurance provides cover for Individuals in the event they are unable to go to work due to an illness or injury. It is commonly purchased by individuals that are not eligible for Worker’s Compensation Insurance such as sole traders or working directors in states such as Queensland where they are not covered.

Businesses in this industry should also consider the following insurance:

• Cyber Liability & Privacy Protection Insurance provides protection from the financial impact of a cyber-attack, privacy breach or confidential data loss. With businesses relying on the internet for their processes and records, the risk for cyber exposure is real. It is important to consider cover for possible cyber-attacks.
• Motor Vehicle Insurance Provides financial protection against loss, damage or theft, property damage, towing costs, redelivery and theft recovery costs and many other liabilities related to motor vehicles. Carers who use vehicles in their care service will benefit from having this cover.
• Corporate Travel Insurance allows individuals to save on costs for purchasing policies individually. Compared to credit card travel insurance, this type almost always has broader coverage because it also includes cover for the personal travel of company managers and directors, including their spouse and children. This insurance is a cost-effective option since it covers all your travel insurance under one policy.
• Business Insurance provides cover for risks and eventualities such as fire and other perils, theft/burglary, machinery/electronic equipment breakdown, accidental damage of goods/stocks/property, and other events that may cause damage, loss in profit or business interruption.
• Management Liability Insurance is designed specifically for private companies and their directors and officers. Corporate governance and regulatory surveillance places immense accountability and pressure on business and company directors and officers to perform their duties thoroughly. This policy provides protection for allegations of company mismanagement and the exposure to potential claims and legal action.

What is an NDIS Independent Support Coordinator?

A NDIS Independent Support Coordinator is a support coordinator who works as a sole trader and is engaged by a NDIS provider as an independent contractor. Independent contractors are not covered by the provider’s Worker’s Compensation Insurance and so they should have their own insurance cover like Personal Indemnity and Public Liability insurance.

About Optimum Insurance

Optimum Insurance Services are insurance advisers dedicated to providing expert and tailored opinions, risk/need analysis, comprehensive insurance options, and top-notch service for all kinds of businesses from quote to claim. If you are interested in learning more about what we can do for you, let’s get in touch.