Understanding permanent impairment and lump sum payments in your personal injury case

While it doesn’t occur often, there are times when employees are injured during work. In most cases these injured employees recover without any permanent injury. However, if the instance occurs where the employee does not recover completely and is left with an ongoing injury, this is called a permanent impairment and can significantly impact a worker’s compensation claim.  

Permanent Impairments 

To determine if you are eligible for a lump sum payment, it first must be determined if you have reached maximum medical impairment. This judgement must be made by a medical professional. The following must be present for you to be eligible for a lump sum payment; 

• The injury has healed to the maximum extent possible 

• Your condition has stabilized 

• Your condition is not likely to improve any further 

• No amount of additional treatment will substantially change your condition 

• You are left with a level of residual disability  

If you are not sure if your injury is considered a permanent impairment, the first thing you need to do is be seen by a doctor who can evaluate your physical condition.  

How Do I Make a Claim for a Lump Sum Award? 

Once you have documentation that you have a permanent impairment, you need to file a claim for a lump sum award with the insurance company of record. This can be awarded to you in addition to the weekly benefits you are already receiving. 

What Does the Insurance Company Do with my Claim? 

The insurance company then has one month to review your claim and determine if they are going to accept liability and make you an offer of a lump sum award, or if they are going to deny your request and litigate the issue of permanent Impairment 

Additional Information Required 

If the insurer believes that additional information is required before they can make their determination, they have two weeks to provide you with a list of what is needed to properly assess your case and/or schedule an appointment for you to be examined by an impairment assessor.  

If the insurance carrier requests this of you, it is highly important that you comply with their request(s) so that a clear determination of permanent disability can be made. This will extend the insurance company’s timeline for deciding to offer a settlement or litigate the matter. The insurance company will have an additional 2 months to analyze the claim and decide. However, This 2-month period does not begin until you give them all the additional information requested. 

Offer to Settle 

If the insurance company makes you an offer of a lump sum payment, you or your solicitor can proceed with negotiating the final sum. If the insurance company files a denial to your request, it is best to consult with a solicitor who specializes in this area of litigation. 

While no one wants to have a permanent physical impairment, it is important for you to be compensated for your workplace injury and the resulting permanent disability you may be left with. Hence, if you find that your disability was not fully resolved, it is important to reach out to a solicitor who specializes in the area of awards for permanent work-related disabilities.  

If you need assistance, please contact the law offices of Owen Hodge Lawyers. At Owen Hodge, we are always happy to help clients understand the full ramifications of your legal needs. Please feel free to call us at your earliest convenience to schedule a consultation at 1800 770 780.