You are here

5.8.3 Amount of interim permanent impairment payable

Under subsection 75(2) of the MRCA as it applied prior to 1 July 2013, the amount of interim compensation payable was the amount determined to be reasonable, based on a conservative estimate of the final PI rating suffered by the claimant once the impairments had stabilised.  When the estimated PI rating had been determined, the compensation factor was calculated, taking note that for interim PI no lifestyle effect was included in the calculation.

 

Under subsection 75(2) of the MRCA, as it applies from 1 July 2013, the amount of interim compensation is the amount determined to be reasonable, based on a conservative estimate of the final PI rating suffered by the claimant once the impairments have stabilised.  When the estimated PI rating has been determined, the compensation factor is calculated, taking account both of the level of PI and the lifestyle rating.

 

There is a number of factors that determine whether the lifestyle effect is to be included in the calculation of a person's interim PI payment.  These are explained in the following table:

 

Date of Determination

Lifestyle effect included:

Prior to 1 July 2013

No but see 5.8.3.1(below) in relation to recalculation of the rate to include the lifestyle factor for any period on or after 1 July 2013

On or after 1 July 2013

Yes, but only for any period on or after 1 July 2013.  To the extent that the determination relates to any period prior to 1 July 2013 no lifestyle effect is included in the calculation.

5.8.3.1 Recalculation of interim PI for claims determined prior to 1 July 2013

A person whose interim PI was determined prior to 1 July 2013 is to have the lifestyle factor for all conditions re-calculated to include a lifestyle factor for the person’s interim conditions on or after 1 July if they meet the following criteria:

· the person had not, prior to 1 July, chosen to convert the weekly payment to a lump sum; and

· the person’s conditions had not stabilised by 1 July.