An Injured Worker that has sustained a permanent impairment as a result of a work-related injury may be entitled to receive a lump sum payment as compensation if they have sustained an impairment of 11% Whole Person Impairment, or greater, in respect of a physical injury or 15% Whole Person Impairment, or greater, in respect of a psychological/psychiatric injury.

Permanent impairment lump sum compensation is in addition to weekly compensation payments and medical treatment expenses.

Once an Injured Worker’s claim for lump sum compensation has been agreed to or determined, this finalises the Injured Worker’s claim for lump sum compensation.

Generally, an insurer will rely on the agreed or determined degree of permanent impairment in the lump sum compensation claim when determining whether an Injured Worker meets the threshold to be eligible to other entitlements to compensation.

However, an agreement or determination with respect to the degree of permanent impairment in respect of the Injured Worker’s claim for lump sum compensation may not be determinative of other entitlements that may be available to them, if their condition has deteriorated since finalising their lump sum claim.

These other entitlements include:

1. Medical treatment expenses

  • If an injury has resulted in a degree of impairment agreed or determined to be 10% Whole Person Impairment or less, the entitlement period extends to 2 years commencing on the date on which the claim for compensation in respect of injury was first made or the date on which weekly payment of compensation ceased to be payable to the worker.
  • If an injury has resulted in a degree of impairment agreed or determined to be at least 11% but not more than 20% Whole Person Impairment the period is extended to 5 years and commences on the date on which the claim for compensation of injury was first made or the last date on which weekly payments of compensation ceased to be made.
  • No time limitation applies to an Injured Worker who is agreed or determined to have suffered from an impairment greater than 20% Whole Person Impairment.

2. Weekly compensation beyond 260 weeks (5 years)

  • After 260 weeks (5 years) there is only an entitlement to ongoing weekly payments if an Injured Worker is agreed or determined as having greater than 20% Whole Person Impairment.

3. Claim for Work Injury Damages

  • An Injured Worker may bring a common law claim against their employer if they have been agreed or determined as having 15% Whole Person Impairment or more.

Can a threshold dispute arise after finalising the permanent impairment lump sum claim?

Yes, a threshold dispute relating to any or all of the three entitlements referred to above may arise after an Injured Worker has finalised their lump sum claim.

What can be done if a threshold dispute arises after the permanent impairment lump sum claim has been finalised?

If a threshold dispute arises relating to any or all of the entitlements listed above and an Injured Worker’s injuries have deteriorated since finalising their lump sum claim, the degree of permanent impairment may be re-assessed and/or reconsidered to determine whether the injured Worker now meets the requisite threshold to be eligible to receive any or all of the entitlements listed above.

It is important to note, however, that if the permanent impairment lump sum claim was made on or after 19 June 2012, the Injured Worker will not be entitled to further lump sum compensation for any deterioration in their degree of permanent impairment.

Therefore, if an Injured Worker has made a claim for lump sum compensation on or after 19 June 2012, whilst the Injured Worker would have exhausted their right to one (1) claim for lump sum compensation, it does not necessarily mean that the degree of permanent impairment agreed or determined in relation to that claim is determinative of other valuable rights that may be available to the Injured Worker, if their condition has deteriorated.

Get in touch with us

We understand that being injured can be a stressful and overwhelming time. At Turner Freeman Lawyers, we are here to help you through the claims process and to relieve some of that stress and pressure from you. If you require our assistance, we encourage you to contact us on 13 43 63 for an obligation free case assessment.