Compensation Settlement: The Final Step in Your Claim Process

A compensation settlement is the final step in your workers' compensation claim. Once you enter into a settlement, you will void any and all further entitlements to compensation under the Workers Compensation and Injury Management Act 1981 (the Act), and that includes all incapacity payments and medical expenses. The compensation settlement may include permanent impairment, medical expenses and weekly incapacity payments. Compensation settlements are sought on the basis of any type of personal injury that was caused by another person’s actions or inactions.

Individuals who have pursued common law actions against their employers may enter common law settlements, depending on the restrictions that apply to the damages.

A redemption agreement applies in the case of permanent partial or permanent total incapacity, where someone has received weekly payments for six months, your claim could be settled through a lump sum payment.  It may also include a lump sum to pay for future medical expenses, rather than ongoing payments.

An approved medical specialist will assess you before you can be approved for permanent impairment. Following this assessment, you can reach an agreement with your employer as to degree of impairment.

The compensation payable in the event of permanent impairment will be based upon the degree of impairment in relation to the prescribed amount. That amount is indexed annually under the  Act, which also sets a monetary limit for some types of compensation.

Your employer's insurer will agree on a settlement and the employer's insurer will likely prepare the required paperwork, which you will have to sign. The paperwork will then be lodged with the Director of Conciliation, who will then review the agreement to establish whether it is genuine. He will also ensure that there is no fraud or undue influence and that the settlement is not obtained by improper means. The amount payable will also be assessed to ensure that it is not excessive or inadequate. The director will then decide whether to record the agreement, or refer it to an Arbitrator for consideration.

By accepting a settlement, you may affect your entitlement to other benefits, so it is important to speak to your arbitrator before you accept any settlement. You should also speak to your private health insurance fund and the Australian Taxation office to find out whether any other possible implications exist. According to ATO, when you agree to a personal injury claim settlement, or if the court orders in your favour and grants you a lump sum payment or periodic structural payments, it may be tax exempt, provided that you meet certain conditions. Ideally, you should discuss it with the tax office.

When you are injured in a work accident or sustain any other type of personal injury, it is important to speak to a personal injury lawyer before you sign anything or accept any settlements.  When you sign an offer from your employer, you sign away any rights and entitlements that may be due to you.
 

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Dec 31st 1969 18:00. Viewed 0 times.

Share on APSense

Comments