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Standard 21 - negotiation on degree of permanent impairment

Seeking to reach agreement on the degree of permanent impairment can reduce time, costs and the likelihood of disputes.

Negotiation on degree of permanent impairment

Principle: Where appropriate, parties will be encouraged to consider negotiating and agreeing the degree of permanent impairment.

 ExpectationsBenchmarks
S21.1Insurers must provide workers with copies of all relevant reports and other evidence prior to negotiating the degree of permanent impairment, to allow for informed negotiation.Reports and evidence provided to the worker at least five working days prior to commencement of negotiations.
S21.2Before entering into an agreement regarding the worker’s degree of permanent impairment, the insurer must be satisfied that the worker has obtained (or waived the right to obtain) independent legal advice regarding the consequences of entering into the agreement.Evidence on claim file.
S21.3Where the insurer and the worker agree the degree of permanent impairment, insurers must ensure that an agreement is entered into that satisfies the requirements of section 66A of the 1987 Act and the Workers compensation guidelines.Evidence on claim file.