settlement of a workers' compensation claim
Liability Disputed
If your workers' compensation claim is disputed because of factual, medical, or legal issues, and your case could go either way, you should probably settle your claim for a lump sum at a conciliation conference. This is especially the case with bullying claims.
If you went to arbitration, you could lose, especially for a reason you did not see coming, and get nothing. You will then regret not taking the insurer's best offer when it was on the table.
Worker Has Returned to Work
If your claim was accepted, but you have returned to work, ideally in your pre-injury duties, and you have been paid wages or salary instead of income compensation for several months, you should have your permanent impairment assessed to see if you are entitled to a lump sum payout.
If you don't have a common law claim and you haven't exhausted the general limit for income compensation you could be eligible for a permanent impairment payout depending on the part of the body impaired.
If you don't have a common law claim and you haven't exhausted the general limit for income compensation you could be eligible for a permanent impairment payout depending on the part of the body impaired.
It usually takes at least a year from the date of injury or the date of your last surgery to determine your permanent impairment. Sometimes it might take up to three years, or even longer when there are multiple injuries or surgeries.
You will have to be assessed by an approved permanent impairment assessor. This usually costs from around $2,000 to $2,500 depending on the complexity of the assessment.
You will usually have to pay this fee up-front to your assessor, but then the fee is claimable as a miscellaneous expense from the insurer if your claim is already accepted and also "open" from the insurer's point of view. You should always seek legal advice before having an assessment, especially if it has been several years since the date of your injury. For back injuries from 1 July 2025, permanent impairment entitlements could be ('WPI' means whole person impairment):
5% WPI - $17,076.25 (No surgery)10% WPI - $34,152.67 (Typically a discectomy, where there is no or little pain)15% WPI - $51,229.25 (Typically a discectomy, where there is still pain)20% WPI - $68,306 (Typically a fusion or disc replacement, where there is no or little pain)25% WPI - $85,382.92 (Typically a fusion or disc replacement, where there is still pain)
For neck injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI - $18,783.88 (No surgery)10% WPI - $37,567.75 (Typically a discectomy, where there is no or little pain)15% WPI - $56,351.63 (Typically a discectomy, where there is still pain)20% WPI - $75,135.50 (Typically a fusion or disc replacement, where there is no or little pain)25% WPI - $93,919.38 (Typically a fusion or disc replacement, where there is still pain)
For shoulder injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI - $20,495.50 (No surgery, but some restricted range of motion)10% WPI - $40,983.40 (Surgery, but moderate restricted range of motion)15% WPI - $56,351.63 (Surgery, very restricted range of motion)20% WPI - $81,996.00 (Shoulder replacement, restricted range of motion)25% WPI - $102,457.50 (Shoulder replacement, very restricted range of motion
For knee injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI -$23,906.75 (No surgery)10% WPI - $47,813.75 (Surgery)15% WPI - $71,721 (Surgery, restricted range of motion)20% WPI - $95,628.50 (Knee replacement)25% WPI - $119,536.25 (Knee replacement, restricted range of motion)
Injuries that occurred in previous years will have lower entitlements.
If you need more specific information about your own personal permanent impairment, please contact us for a free no-obligation consultation.
You will have to be assessed by an approved permanent impairment assessor. This usually costs from around $2,000 to $2,500 depending on the complexity of the assessment.
You will usually have to pay this fee up-front to your assessor, but then the fee is claimable as a miscellaneous expense from the insurer if your claim is already accepted and also "open" from the insurer's point of view. You should always seek legal advice before having an assessment, especially if it has been several years since the date of your injury. For back injuries from 1 July 2025, permanent impairment entitlements could be ('WPI' means whole person impairment):
5% WPI - $17,076.25 (No surgery)10% WPI - $34,152.67 (Typically a discectomy, where there is no or little pain)15% WPI - $51,229.25 (Typically a discectomy, where there is still pain)20% WPI - $68,306 (Typically a fusion or disc replacement, where there is no or little pain)25% WPI - $85,382.92 (Typically a fusion or disc replacement, where there is still pain)
For neck injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI - $18,783.88 (No surgery)10% WPI - $37,567.75 (Typically a discectomy, where there is no or little pain)15% WPI - $56,351.63 (Typically a discectomy, where there is still pain)20% WPI - $75,135.50 (Typically a fusion or disc replacement, where there is no or little pain)25% WPI - $93,919.38 (Typically a fusion or disc replacement, where there is still pain)
For shoulder injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI - $20,495.50 (No surgery, but some restricted range of motion)10% WPI - $40,983.40 (Surgery, but moderate restricted range of motion)15% WPI - $56,351.63 (Surgery, very restricted range of motion)20% WPI - $81,996.00 (Shoulder replacement, restricted range of motion)25% WPI - $102,457.50 (Shoulder replacement, very restricted range of motion
For knee injuries from 1 July 2025, permanent impairment entitlements could be:
5% WPI -$23,906.75 (No surgery)10% WPI - $47,813.75 (Surgery)15% WPI - $71,721 (Surgery, restricted range of motion)20% WPI - $95,628.50 (Knee replacement)25% WPI - $119,536.25 (Knee replacement, restricted range of motion)
Injuries that occurred in previous years will have lower entitlements.
If you need more specific information about your own personal permanent impairment, please contact us for a free no-obligation consultation.
Worker Is Unemployable
Liability recently accepted
If your claim has been accepted, and it is apparent after only 6 months to a year that you will likely be on income compensation until you exhaust the general limit, the insurer may be willing to pay you out the remainder of the general limit, but with the tax taken out. The insurer receives the "benefit" of not paying income tax on your behalf. Workers who want to have an early retirement, or plan on moving away from Western Australia, or don't want the headache of dealing with their employer or the insurer anymore often find this option attractive.
Income compensation close to running out
However, if you have received income compensation for several years, and have not been able to return to any work, and you have around 6 months to a year of income compensation left, why would you settle your claim? You are going to receive that money even if you don't settle.
You are just letting the insurer off the hook. You are better off receiving income compensation until you have been paid 75% of the general limit and then consider applying for additional income compensation, which is currently an additional $204,990.
If your evidence of unemployability is compelling such as using a cane to walk around, being homebound, and relying on your friends and family to do cleaning and shopping for you, the insurer will likely offer you close to the maximum extension, but with income tax taken out, which is often around $100,000 to $130,000.
If your evidence is less compelling, for example you can still do your own cleaning, shopping, and travelling, and you are still relatively mobile, but you can't find an employer who will take you on because of your injury, the insurer will likely offer you $30,000 to $50,000 to settle your claim after you have been paid the general limit for income compensation.
If your evidence of unemployability is compelling such as using a cane to walk around, being homebound, and relying on your friends and family to do cleaning and shopping for you, the insurer will likely offer you close to the maximum extension, but with income tax taken out, which is often around $100,000 to $130,000.
If your evidence is less compelling, for example you can still do your own cleaning, shopping, and travelling, and you are still relatively mobile, but you can't find an employer who will take you on because of your injury, the insurer will likely offer you $30,000 to $50,000 to settle your claim after you have been paid the general limit for income compensation.
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