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A correction is necessary where an earlier calculation of PI compensation was incorrect and a new, correct amount has been calculated. This could occur, for example, where:
- a reconsideration of an original determination results in a different calculation of compensation entitlement
- a mistake has been made in an earlier calculation
- a change of policy or a Court decision results in recalculation of a client's compensation for permanent impairment, or
- an assessment of compensation for permanent impairment in a pre-1988 case was made without awarding a S27 payment for non-economic loss (NEL) as required by the Federal Court case of Schlenert v Australian and Overseas Telecommunications Corporation (1994) (for claims for NEL before 7 December 2000).
A deduction for a correction should be distinguished from a deduction for:
- a prior 'interim payment'
- an overpayment, or
- a DVA clearance.
It is important not to describe an amount as a correction when it arises from a miscalculation of another form of compensation, e.g. incapacity or reimbursement of medical expenses. Errors of this nature should be treated as overpayments.
There are two ways in which a PI case that requires correction may be assessed:
- where there is no existing PI calculation – by entering the case as new assessment in the usual way. If any previous payment amounts are required to be deducted, the relevant amount can be entered as a correction into the Debts screen. That amount will then be deducted from the total assessed amount of compensation. Ensure there are appropriate case notes made.
- where there is a pre-existing PI calculation – by undertaking an investigation of the previous assessment, entering the correct details in place of the existing assessment. If any previous payment amounts are required to be deducted, the relevant amount can be entered into the reassessment details. That amount will then be deducted from the total assessed amount of compensation. Ensure appropriate case notes are entered.