5.7.1 Compensation for Non-Economic Loss

Key Points

• A veteran who is entitled to PI compensation under section 24 is also entitled to NEL compensation under section 27 in respect of the injury.
• Each injury must be assessed separately under section 27 and delegates must determine the NEL that a veteran suffers as a result of the specific injury being assessed.
• NEL assessments are made in accordance with the PI Guide taking into account the ‘Principles of Assessment’ in the PI Guide.
• NEL scores in relation to one injury cannot be ‘offset’ against the NEL scores determined for a separate injury.

For more information on the definition of NEL see Chapter 3.5.1.

Calculation of NEL compensation

Section 27(2) sets out the formula for calculating the amount of NEL compensation payable, as follows:

($15,000 x A) + ($15,000 x B)

Note: The NEL compensation amount is indexed in accordance with section 13 of the DRCA.

Part A is the percentage determined by MRCC under Section 24 to be the degree of permanent impairment of the veteran from that injury, and

Part B is the percentage determined by MRCC under the PI Guide to be the degree of non-economic loss suffered by the veteran from that injury.

'Part B' is determined by assessing the NEL suffered by the claimant against the scores set out in the tables in the PI Guide. These tables require an assessment of NEL suffered by the claimant in relation to:

• Table 1              Pain and Suffering
• Table 2              Loss of Amenities
• Table 3              Other Loss
• Table 4              Loss of Expectation of Life

The scores in Tables 1 to 4 are then combined in accordance with Tables 5 and 6.

For more information about historical payment rates, see Historical Payment Rates.

For more information about the assessment of NEL Part B Scores, see Chapter 5.8. NEL Tables 1-5 and Questionnaire.