S21. Negotiation on degree of permanent impairment

Commencement date: 21 October 2019

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

Principle

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

ExpectationsBenchmarks
S21.1

Insurers are to provide workers with copies of all relevant reports and other evidence before negotiating the degree of permanent impairment, to allow for informed negotiation.

Reports and evidence are provided to the worker at least five working days before negotiations commence

S21.2

Before entering into an agreement regarding the worker’s degree of permanent impairment, the insurer is to be satisfied that the worker has obtained, or has waived the right to obtain, independent legal advice regarding the consequences of entering into the agreement.

Evidence on claim file

S21.3

Where the insurer and the worker agree regarding the degree of permanent impairment, insurers are to ensure that any agreement entered into satisfies the requirements of section 66A of the 1987 Act and the Workers compensation guidelines.

Evidence on claim file

Insurers and workers are not precluded from reaching an agreement on a worker’s degree of permanent impairment.

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

An agreed degree of permanent impairment must be confirmed through a complying agreement. Where a worker enters into a complying agreement, section 66A(3) of the 1987 Act gives power to the Workers Compensation Commission (the Commission) to award additional compensation subject to the provisions of section 66(1A) of the 1987 Act.

Email