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20.23 No payment if entitlement Redeemed

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Sections 30 of the SRCA and 49 of the 1971 Act both provide that, when an entitlement to weekly compensation falls below a certain amount and this appears likely to continue indefinitely, the weekly entitlement should be 'redeemed' by payment of a lump sum. Where these qualifying conditions are met, redemption is voluntary under the 1971 Act but mandatory under the SRCA. The amount of the lump sum is determined by formulae that take into account the clients age, expectation of life and previous entitlement. Payment of that lump sum is in lieu of further weekly payments.

 

See 20.28 that deals with redemption payments in some detail.

 

However for the present circumstances (i.e. determining eligibility for payment) receipt of a redemption lump sum means no further weekly payments may be made.

 

The one exception relates to rare cases where a redeemed client subsequently becomes totally and permanently incapacitated for all work. Therefore Delegates considering a determination in respect to weekly payments should first check whether the client has ever received a lump sum redemption of his/her incapacity entitlement and whetehr to apply section 31 to calculate the amount of compensation.