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9.3 Total Incapacity Excludes Payment of Compensation

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Sections 12(1) and (1AA) of the 1930 Act prevented a lump sum payment for a 1930 Act impairment if the client had a total and permanent incapacity for work.

Section 12(1A) allowed a lump sum payment for a 1930 Act impairment, but, if paid, it made the client ineligible for incapacity payments for periods of incapacity for work as a result of the impairment. This referred to finite periods of incapacity for work and therefore did not apply where the incapacity was total and permanent.

Section 12(1), (1AA) and (1A) state:

12(1) Subject to this Act, where an employee sustains, by accident arising out of or in the course of his employment, any of the injuries specified in Part I of the Third Schedule to this Act, the compensation payable shall, when the injury results in incapacity other than total and permanent incapacity for work, be the amount of $12,000.

12(1AA) Subject to this Act, where an employee sustains, by accident arising out of or in the course of his employment, any of the injuries specified in the first column of Part II of the Third Schedule to this Act, the compensation payable shall, when the injury results in incapacity other than total and permanent incapacity for work, be the amount equal to such percentage of the amount specified in the last preceding subsection as is specified in the second column of that Part opposite the specification of the injury in the first column.

12(1A) Upon payment of an amount under this section the employee shall not be entitled to any payment in accordance with sub-paragraph (b) or sub-paragraph (c) of paragraph (1) of the First Schedule to this Act in respect of a period of incapacity for work resulting from the injury, but the amount payable under this section shall not be subject to any deduction in respect of any amount previously paid to the employee in accordance with either of those sub-paragraphs.

Where the client is aged 65 or more, and is not being paid weekly payments under the transitional provisions as a former employee, S12(1) does not have any effect because the client is no longer entitled to incapacity payments (S23(1) of the SRCA).