NRL says insurance plans in place before Alex McKinnon injury

McKinnon fractured his C4 and C5 vertebrae following an awkward three-man tackle while playing for the Newcastle Knights against Melbourne Storm in March.

The incident left the 22-year-old in a wheelchair and he is currently undergoing rehabilitation.

Plans for a new insurance scheme for career-ending injuries, which could see payouts worth up to one million Australian dollars, were agreed by the NRL and the league's 16 teams on Thursday.

The arrangement is in place until March, when a new long-term solution will be discussed.

Shane Richardson, chief executive of the South Sydney Rabbitohs, spoke of behalf of NRL teams and stated the plans were not a reaction to McKinnon's injury.

"The reality is we have been working on this with the players association and with the NRL for nearly 12 months now," he said.

"We have known that the current insurance scheme was inadequate and we have worked really hard with the insurers and with the players association to get to where we are at today.

"It isn't just about the unfortunate tragedy with Alex. It is about trying to go long term into the future with what we are going to do for player welfare and we have been working at this over a long period."

NRL CEO Dave Smith added: "These tragic accidents, let's face it, they happen very, very rarely but when they do we want to be there to support the family and the players wherever they play in rugby league.

"What this scheme recognises is a very significant step forward for the game to ensure that for this season we have the protections that we need, but this is about a permanent solution."