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5.2 Entitlement to Permanent Impairment Compensation

Under section 68 of MRCA, the Commonwealth is liable to pay PI compensation to a person if:

  • liability has been accepted for one or more conditions;
  • a claim for PI compensation has been lodged;
  • as a result of the accepted condition(s), the person has suffered an impairment which constitutes a minimum number of IPs;
  • the impairment is likely to continue indefinitely; and
  • the condition has, or, if more than one condition has been accepted, all of the conditions have, stabilised.


There is also a general rule of law which provides that a claimant must not unreasonably refuse treatment that will lessen the degree of impairment they suffer (see Fazlic v Milingimbi Community Inc (1982) 150 CLR 345).