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12.7.1.1 Methodology to apply to transitional cases where the claim for PI is made before 1 July 2013

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Last amended 
18 December 2014

The following table outlines the method contained within Chapter 25 of GARP M for calculating PI (including interim) compensation where a person has a condition accepted under the MRCA and a condition accepted under the VEA and/or the SRCA and the MRCA PI claim is made prior to 1 July 2013 and the date of effect of the PI is also prior to 1 July 2013.  Some of the steps are not listed in Chapter 25 of GARP M.  In the absence of specific instructions, the following steps have been extrapolated from the primary legislation and the legislative instrument.

 

Step

Action

Methodology to apply to transitional cases where the claim for PI is made prior to 1 July 2013

1

Determine the impairment points suffered as a result of the person’s VEA and/or SRCA conditions as at today’s date.  This entails conducting a new assessment of the person’s VEA and/or SRCA conditions under GARP M and excluding impairment suffered as a result of the person’s MRCA conditions as if these were non-accepted conditions.

2

Determine the impairment points suffered as a result of the person’s MRCA conditions as at today’s date.  This entails assessing the person’s MRCA conditions under GARP M, and excluding impairment suffered as a result of the person’s VEA and/or SRCA conditions as if these were non-accepted conditions.

3

Combine the two ratings arrived at in Step 1 and Step 2 on Table 18.1: Combined Values Chart.  This is the claimant’s “total impairment rating”.

4

Determine lifestyle points for all conditions using Chapter 22 Lifestyle Effects.

5

Determine the compensation factor to be applied using Chapter 23 Calculating Permanent Impairment Compensation.  It may be necessary to utilise the formula under the heading “Combined Ratings” in Chapter 23 to arrive at a weighted compensation factor.

In order to use this formula, conditions accepted under the VEA should be treated as if they relate to warlike/non-warlike service and conditions accepted under the SRCA should be treated as if they relate to peacetime service.  Where a condition is accepted under both the VEA and the SRCA, treat the condition as if it were related to warlike/non-warlike service.  Often, a notional assessment will have to be undertaken for each MRCA condition and each old condition using Chapter 20 Apportionment.

6

Multiply the compensation factor by the maximum MRCA PI compensation rate.  This amount is the gross MRCA PI compensation entitlement.

7

Subtract the VEA DP or the SRCA lump sum (converted to a current equivalent periodic payment) from the gross MRCA PI compensation entitlement.  The remainder is the gross MRCA periodic payment payable under Part 2 of Chapter 4 of the MRCA.  If previous MRCA PI has been paid in the form of a lump sum or is being paid as a periodic payment the gross MRCA amount is reduced by the periodic equivalent of the lump sum or by the periodic payment whichever is relevant to the client  (see 12.7.1.4)  The resulting net amount can be converted to a lump sum under section 78 of the MRCA.