Carver

Petitioner William Carver seeks review of a decision of the Workers’ Compensation Appeals Board (Board) that the California Insurance Guarantee Association (CIGA) is not liable for a 10 percent increase in benefits awarded against Homeland Insurance Company (Homeland) pursuant to Labor Code section 5814. For the following reasons, we annul the decision of the Board.

On August 24, 1982, petitioner was injured at work. His employer, Western Kawasaki, was insured for workers’ compensation liability by Homeland. Permanent disability advances due from August 17, 1983, through June 4, 1984, were not paid. (Lab. Code, § 4650 [permanent disability payments due on fourth day after injury becomes permanent or date of last payment of temporary disability, whichever first occurs].)

On July 27, 1984, petitioner filed an application for adjudication of claim with the Board. On May 24, 1985, petitioner filed a petition for penalty pursuant to Labor Code section 5814, based on Homeland’s failure to advance permanent disability benefits. On October 30, 1985, defendants Western Kawasaki and Homeland stipulated that the permanent disability advances from August 17, 1983, through June 4,…