Independent MPs have made counterproposals aiming to break the deadlock over the NSW government’s workers’ compensation reforms.

In a letter to the Labor government last Thursday – after a state upper house committee rejected draft legislation – they request “support for a compromised position”, adding: “It is our duty as elected representatives to make [the scheme] financially sustainable so that it can protect injured workers, deliver affordable premiums and safeguard taxpayer funds.”

The government’s plan to raise the whole person impairment threshold for accessing mental injury benefits and damages is among the most contentious in the draft legislation. 

The independent MPs said: “Our proposed thresholds are fairer … To reduce premium increases next year, our proposal would support an increase in whole person impairment thresholds for weekly payments after 130 weeks for workers with primary psychological injuries.”

Another of the MPs’ proposals is directed at insurers.

“Unions report that insurers aggressively pursue claimants, initiating action in the commission, tribunal or courts that has little chance of success or costs more to prosecute.

“We understand the aim is to intimidate claimants and it is costing the system. Before any claim can commence, our amendments would require insurers to provide a statement from their lawyer verifying that the matter has a reasonable prospect of success and that the cost of legal action is proportionate to the claim.”

The government has signalled it is receptive to the MPs’ suggestions.

“Their proposals are constructive,” Treasurer Daniel Mookhey said. “We will engage with them seriously. 

“I look forward to further engaging with the Labor caucus and cabinet, the crossbench, the opposition, union movement, business community and not-for-profit sectors about the detail of these specific proposals.”