If you have made a workers’ compensation claim after being injured at work, you will most likely go through a settlement process at some stage. Injured workers must understand their rights during the settlement process. We’ll walk you through the key things to know before finalising your claim, ensuring that you make informed decisions as it has the potential to affect your financial and legal well-being.
What is a Workers’ Compensation Claim Settlement?
A settlement finalises your workers’ compensation claim. It’s an agreement between an injured worker, their employer and their insurance to resolve their injury claim. It typically involves payment to compensate the injured workers for their lost wages, medical expenses and some other costs incurred due to the injury. A claim settlement aims to provide closure to both parties and allow the injured worker to move forward.
How to Settle Your Workers’ Compensation Claim
Every workers’ compensation claim is different, so there are multiple ways a claim can be settled. While these are all different methods, the process usually involves these steps:
- Negotiation: Either you or the insurer start negotiations to settle your claim.
- Reaching Agreement: Both parties must agree on the settlement terms (this includes when weekly payments and medical expenses will cease).
- Document Preparation & Signing: Necessary paperwork is prepared and signed by all parties, sealing the deal.
- Seeking Approval: The paperwork is then submitted to WorkCover WA for approval, ensuring the settlement complies with regulations.
- Receiving Compensation: Once approved, you should receive your lump sum compensation payment within a reasonable amount of time, effectively marking the end of the claim.
Both parties need to understand the terms and implications of the settlement before finalising it. This is why it is recommended you seek legal assistance when negotiating a fair settlement.
Workers’ Compensation Benefits and Payments
There are various forms of payment you can receive when settling a workers’ compensation claim. The benefits you receive when settling your claim depend on the nature of your injury and what you agree upon when negotiating. Benefits could include:
- Medical Expenses: Workers’ compensation usually covers any essential medical expenses related to your work-related injury or illness. This includes doctor appointments, surgery, medications, physical therapy etc.
- Weekly Compensation Payments: If your injury leaves you unable to return to work, you could claim for future weekly payments to compensate for your loss of income. This is rarely a full wage replacement but a portion of your lost future wages.
- Lump Sum Payment: If you are left with a permanent impairment and/or a continuing incapacity to work, you may be entitled to a schedule 2 lump sum payout. This is often used as the base of a settlement proposal and combined with weekly payments as well as medical expenses etc.
Things to Consider Before Settling a Workers’ Compensation Claim
There are a few key things to be aware of before finalising your claim. Considering the points below ensures you have a full understanding of your settlement terms.
Right to Future Compensation
If you decide to settle your workers’ compensation claim (and it is your decision despite what you may have been told) it will completely finalise your claim. You will not be able to claim any further compensation related to that injury from the party you enter into the agreement with. Any future time off work or medical expenses for that injury will need to be covered by you. The settlement will likely prevent you from making a common law claim against the employer or their insurer.
Medicare Cover
Before you receive your full settlement sum, Medicare needs to check whether they have covered any of your work injury medical expenses. Medicare will first retain 10% of your settlement sum and return it if you weren’t covered. You will need to repay any Medicare expenses from your payout before you receive it. You must also know of any implications with Social Security, Private Health or salary continuance insurance.
Seeking Legal Advice When Entering Into a Settlement
It is highly advisable to seek legal advice before negotiating a workers’ compensation claim settlement. An experienced workers’ compensation lawyer can provide guidance and expertise. They can help ensure that your settlement agreement includes an allowance for all the benefits you may be entitled to.
If you have been injured at work, contact Anvil Legal. Our experienced workers’ compensation lawyers can assist you from submitting your claim till settlement. Get in touch to have your claim reviewed by our qualified lawyers.