But not everybody is taking no for an answer, with 714 public servants and other government workers taking legal action in the past financial year to try to get insurer Comcare to pay up.

The insurer's annual report reveals it has become a much tougher nut to crack with nearly one-in-three claims from public servants seeking workplace compensation knocked back.

The previous year, about four-out-of five claims were paid out and only 573 applicants pursued their claims to the Administrative Appeals Tribunal.

Claims were down overall in 2015-16 and, according to the report, the amount of money paid to claimants declined by nearly $12 million to $282 million and the notoriously stubborn rate of psychological injury among Commonwealth public sector employees came down slightly.

The latest result continues the dramatic turnaround for Comcare from the horror losses of more than half a billion dollars in 2012, later revised upward to a book loss of $670 million.

The scheme finished 2015-16 more than $250 million in the black.

Comcare has improved its financial position over the years through a get-tough policy on claims and a move to make public service departmental bosses financially liable, through the premium hits to their agency budgets, for workplace safety.

The resulting premium increases caused bitter resentment at the top of the cash-strapped Australian Public Service.

There have also been crackdowns on dubious claims for pharmaceuticals and treatments that have no proven therapeutic benefits.

In her notes to the annual report, Comcare's chief executive Jennifer Taylor did not dwell on the higher rate of rejections or the increasing number of legal actions.

Instead Ms Taylor wrote the insurer's improved performance was down to better case management and a greater focus on injury and illness prevention.

"Our current efforts in prevention and early intervention are seeing positive results. Through better engagement, we are supporting employers to make their workplaces safer," Ms Taylor wrote.

"The focus on early intervention efforts by employers is helping to improve recovery and return-to-work outcomes.

"Employers are detecting the indicators of injury earlier, while addressing more injuries through early intervention before they reach the claims and compensation stage."

The chief executive noted that, financially, Comcare continued to move in the right direction.

"Premium rates are falling, claim frequency is reducing and claim duration after injury is beginning to improve," she wrote.

"These trends are having a very positive impact on the financial position of the premium scheme, with the ratio of assets to liabilities increasing steadily and moving us towards a fully funded scheme ahead of target.

"Comcare has continued to refine claims management practices with a focus on early intervention and return to and recovery at work."