Commutations

Key information

Payment of the lump sum removes the insurers liability to pay future weekly payments and/or medical, hospital and rehabilitation expenses for the injury.

Eligibility

A commutation is only available when SIRA has certified that the following conditions have been met:

• you have an injury that has resulted in permanent impairment of at least 15%
• compensation for permanent impairment has been paid
• it has been more than 2 years since you first received weekly payments for the injury
• all opportunities for injury management and return to work have been fully exhausted
• you have received weekly payments regularly in the previous 6 months
• you have an existing and continuing entitlement to ongoing weekly payments
• weekly payments have not been terminated as a result of you not complying with any return to work obligations
• you do not have a ‘catastrophic injury’ as described in Part 9 of the workers compensation guidelines.

Application

After eligibility has been confirmed, you complete a commutation application.

Legal advice

Before entering into a commutation agreement, you must receive independent legal advice.

The legal adviser must certify in writing that you have been advised:

• on the full legal implications of the agreement
• that it is in your best interest to get independent advice about any financial consequences before entering into the agreement.

You will also be required to confirm in writing that you have received and understood this legal advice, as part of the agreement process.

Registration with the Personal Injury Commission

Once all parties agree to the commutation and the amount, and SIRA certifies that you have met the eligibility preconditions, the commutation agreement can proceed to registration with the Personal Injury Commission.

Once the commutation agreement is registered by the Personal Injury Commission, the insurer must pay the money:

• within 7 days of the registration, or
• within a longer period if the agreement specifies one.