Lump Sum Impairment Benefits WorkCover lump sum payments WorkCover, WorkSafe & Workers Compensation Workers compensation is a type of insurance that provides benefits to Australian workers who are injured or contract illnesses arising from their job. In Victoria, this insurance is known as WorkCover and is managed by WorkSafe. Commonwealth employees are covered under a different scheme known as Comcare. Confused? You’re not alone. Workers compensation claims can be complex and dealing with Government authorities can be daunting, especially at a time when you are trying to cope with the trauma and consequences of being injured at work. Getting independent legal advice prior to making a claim is a smart idea and helps remove a lot of the stress and anxiety associated with the process, including any disputes which may arise. Understanding the permanent impairment benefit An impairment benefit can be pursued as a lump sum claim if you have a work related physical injury that has left you with a permanent impairment. To be eligible to receive an impairment benefit for physical injury you must show that you have suffered at least a 10% whole person impairment for a physical injury or a 30% whole person impairment for a psychological injury. You can be assessed for impairment benefit compensation 12 months after the date of your injury. Due to a recent change in the law, after 31 March 2024 you will also need to show that you have suffered a permanent impairment in excess of 20% to remain on weekly payments after 130 weeks. This is a very high threshold and means that it is a difficult test to meet. We strongly recommend you seek immediate legal advice from one of our qualified lawyers even if your weekly payments have stopped. Your degree of impairment is assessed based on a set of guides and instructions applied by independent medical examiners. These guides take into account factors like range of motion and loss of function. Mental injuries can also be assessed. Your degree of impairment will be given a particular percentage in accordance with these guides and instructions. As a general guide the amount of a lump sum payment is arrived at by determining whether your injury meets the impairment percentage threshold. The higher the percentage of impairment, the greater your entitlement. WorkCover impairment benefit payments are available in addition to any other workers compensation payments or services you may be receiving and may even be claimed after you return to work. WorkCover payouts for spinal injuries One of the most common body parts to be injured at work is the spine. Many workers suffer from slipped, ruptured or bulging disc injuries. Workers with these types of injuries should make an impairment benefit claim. At Arnold Thomas & Becker we have extensive experience in WorkCover payouts for spinal injuries and a proven track record in winning significant settlements. Total and permanent disability If you are unable to work due to a medical condition, including a psychological or mental health condition, you may be able to make a claim for Total and Permanent Disablement (TPD) benefits. You may have a TPD benefit in addition to your accumulated account balance held with your superannuation fund.Our experienced TPD lawyers can offer you legal advice if you are unable to work due to a mental health condition and you have a TPD benefit with your superannuation fund. Why you need the best workers compensation lawyers in Melbourne With over 50 years experience in helping Victorian workers get the maximum compensation for their injuries, Arnold Thomas & Becker is a legal firm you can trust. For more information call our helpline on 1300 333 300 and talk directly to a lawyer. Frequently asked questions How is the amount of Impairment Benefit compensation assessed for a physical injury? An independent doctor with specialist training will assess you with reference to the Guides to the Evaluation of Permanent Impairment (4th Edition). These Guides set out criteria that must be considered by the doctor. For example, the doctor might ask you to perform tests to measure the range of motion of your affected body part. The doctor then describes and verifies your complaints or symptoms which in turn are categorized into estimated whole person impairments. There are special provisions for musculoskeletal injury (injury to the spine) which must be 5% or greater. The amount of compensation for physical impairment where you have above a 5% (for spinal injury) or 10% whole person impairment can range from $15,550 to $741,000. The amount of compensation for your impairment benefit is calculated by applying the assessed percentage of your impairment to a mathematical formula. The formula is set out in the Workers compensation legislation and includes a table with corresponding percentage figures; the higher the percentage the higher the compensation amount. This amount per % increases for every whole person impairment and is currently capped at $741,000 for an impairment between 81-100% (these amounts are indexed yearly) How is the amount of Impairment Benefit compensation assessed for a psychological injury? To be eligible to receive an impairment benefit for psychiatric injury you must show that you have suffered a 30% whole person impairment. So what is a 30% whole person impairment? An independent psychiatrist will assess you with reference to the table for the evaluation of psychiatric impairment. To be in the range of 25% to 50% whole person impairment you will need to be assessed as having at least a moderate to severe impairment to your mental functions across various areas such as intelligence, thinking, perception, judgement, mood and behavior. Can I take my own material to the examination? Your medical history and any medical reports from treating doctors should be made available to the doctor doing your assessment. You are therefore not usually required to take anything to the examination other than at the direction of your lawyer. I have a psychological symptoms arising from my physical injury, will this be included in my impairment rating? In assessing the degree of impairment there is no allowance for any psychological injury arising as a consequence of or secondary to a physical injury. Under Workers compensation law in Victoria there is a distinction between primary and secondary psychological injuries. An example of primary psychological injury is if you witnessed a traumatic accident at work and as a result you are diagnosed as suffering from PTSD. An example of secondary psychological injury is if you injured your back at work and as a consequence of your back injury you are diagnosed as suffering from depression. When calculating your permanent impairment, only your primary psychological injury is taken into account and any secondary psychological injury is disregarded and not included in the final impairment calculation. How will the calculation of my percentage of impairment be added up? If you have suffered multiple injuries in a single work related incident the assessment for each impairment is calculated by using the Combined Values Chart. The combining of the different impairments is not the same as adding them up. Our lawyers are trained to review and advise you in situations where you may have multiple body parts. Maximizing the amount of your compensation for an impairment benefit payout is our priority. Why is my pain not calculated as a percentage of my impairment? The impairment percentages found in the AMA4 Guides make allowance for the pain that may accompany a physical injury and so it is not separately calculated. Once my impairment claim is finalized what other types of compensation can I claim? You may be entitled to a lump sum payment for your pain and suffering and past and future loss of earnings. In order to be successful you must demonstrate that you have a Serious Injury and that another party, such as your employer, was negligent in causing your injury. You may also be entitled to a Total and Permanent Disability claim if you are unable to work again.You may also challenge any termination notices issued by the Workcover agent such as a decision that stops your weekly payments. My percentage of impairment was less than 10% – can I make any other claim for compensation? Yes, it is possible to make a lump sum claim in negligence even if your injury is below the 10% threshold for and impairment benefit.