6.3.31 Payment of Private Insurance Benefits

Any payments received via lump sum settlement of private insurance matters will not affect a person's entitlement to either permanent impairment or incapacity compensation under the MRCA. There is no requirement to “offset” these payments against any MRCA benefits (as occurs with payments for common law damages). Similarly income protection insurance is not earnings from employment and should not be considered in the calculation of actual earnings.

Refer to Chapter 2.2.9 of the MRCA policy manual “Claims” for more information on the definition of private insurance benefits and the basis for excluding them from the recovery provisions contained in the Act.

Source URL: https://clik.dva.gov.au/military-compensation-mrca-manuals-and-resources-library/policy-manual/ch-6-incapacity-payments/63-general-rules-calculating-incapacity-payments/6331-payment-private-insurance-benefits