As workers compensation lawyers based in Sydney, on our website, we talk about your entitlements when you are injured at work, which are known as statutory benefits. One entitlement that you can claim, if eligible, is known as lump sum compensation for permanent impairment.
But what do these big words mean?
Say you are injured at work. Since the date of your injury, you have been getting treatment in the form of physiotherapy, general practitioner and specialist consultations, rehabilitation and been taking medication for your pain. Or, you have had surgery and have consulted your specialist who has told you that your injuries are now stabilised. This means that your condition has reached maximum medical improvement (“MMI”) – in other words, that you have recovered as much as you are going to, and your condition is not expected to improve significantly with further medical treatment.
Then what’s next?
This means that your injuries can be assessed for permanent impairment, also known as whole person impairment (“WPI”). Once your injuries are stabilised, we arrange a medical assessment on your behalf, where a specialised medical assessor will assess your injures and provide us with a report which includes a WPI rating. Based on this report and the medical evidence we obtain as part of your claim, we then submit the lump sum permanent impairment claim on the workers compensation insurance company on your behalf.
In order to receive lump sum compensation for your permanent impairment, you would need to be assessed at 11% WPI or over. There is no permanent impairment compensation payable for a degree of WPI of 10% or less.
How much is the permanent impairment payout in NSW?
It all depends on your assessed level of permanent impairment.
As detailed in section 66 of the Workers Compensation Act 1987 (NSW), the Workers Compensation Benefits Guide is a helpful guide that indicates what you would expect to be paid for your injuries. For example, if you were injured between 1 July 2024 to 30 June 2025, compensation amounts payable for an injury resulting in permanent impairment are as follows:
|
Degree of Permanent Impairment |
Payout Figure |
|
0 – 10 % |
$0 (no entitlement) |
|
11% – 30% |
Ranging from $28,840.00 – $100,470.00 |
|
31% – 50% |
Ranging from $106,560.00 – $224,550.00 |
|
51% – 55% |
$310,580.00 |
|
56% – 60% |
$396,570.00 |
|
61% – 65% |
$482,560.00 |
|
66% – 70% |
$568,550.00 |
|
71% – 74% |
$654,540.00 |
|
75% – 100% |
$740,550.00 |
(These are amounts payable for permanent impairment injuries received from 5 August 2015 onwards to date) Source: State Insurance Regulatory Authority, Workers compensation benefits guide, Table 37, as at October 2024
To put it in perspective, if you were injured on 1 July 2024, you have been assessed by a medical assessor at 21% WPI, you are expected to receive lump sum payment in the sum of $66,540.00.
But… is that it?
Yes…
If you are assessed by a medical assessor at 0% to 10% WPI, unfortunately, you are not eligible for lump sum compensation.
Maybe..
If you are assessed by a medical assessor at 11% to 14% WPI, you are entitled to lump sum compensation only.
No.
If you are assessed at 15 to 20% WPI, you are entitled to pursue a work injury damages claim and recover loss of earnings up to retirement age, which can be a very high amount.
If you are assessed at 21% WPI or over, you are considered a worker with “high needs”. Not only are you entitled to make a claim for work injury damages claim, which gets you are significant amount of money, you are also entitled to choose not to pursue a work injury damages claim and remain on the workers compensation scheme, where you will be paid your weekly payments until retirement age and medical treatment expenses for life.
Who pays the lump sum compensation payment?
The workers compensation insurer pays for it. It is also important to remember that the insurance company must first agree to your level of impairment before paying your lump sum compensation. They may decide to have you assessed by their own medical assessor. If a dispute arises in relation to your level of impairment, the matter may be referred to the Personal Injury Commission for a permanent impairment dispute. Whatever the outcome may be, we will guide you during the process and provide you with expert advice, assurance and support from the outset of your claim.
Am I eligible for lump sum payment for permanent impairment?
Yes, you are eligible for lump sum compensation payment if you are assessed at 11% WPI or over.
During the outset of your claim, the expert team at Trump Lawyers guides you as follows:
- Advise you on the workers compensation claims process and how it applies to the specific circumstances of your claim,
- Request updates from you in relation to treatment and recovery,
- Obtain medical evidence from your treatment providers and specialists,
- Arrange a medical legal examination and lodge a lump sum permanent impairment claim.
Do not take on workers compensation insurance on your own. Our experienced legal team has the skills and knowledge necessary to act on your behalf every single process of your claim. Please feel free to reach out to our expert team by contacting us on 02 9724 2549 or submitting the online form here.
Diana Joseph Solicitor P: 02 9724 2549
