Interim Impairments That Become Final Impairments
Where interim impairments under section 25 are later assessed for deterioration, and it is found that deterioration has not occurred, how is non-economic loss for the impairment then calculated?
In this case, there is simply a terminology alteration, with the interim impairment simply becoming the final impairment.
However, it should be noted that, for the purposes of determining a non-economic loss payment, calculations under section 27 should be determined using the statutory rates applicable at the date of final assessment.
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Example |
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An employee's permanent impairment is assessed in 1995, when it is determined that a further deterioration to the current percentage loss of 10% will occur. |
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The employee is awarded an interim impairment payment. |
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When re-assessed for deterioration in September 1997, it is found that the initial impairment has not deteriorated and it is the doctor's opinion that no further loss will occur. |
As re-assessment occurred in 1997 with a final percentage determined, irrespective of change or otherwise to the impairment level, impairment statutory rates for 01/07/1997 will apply to the non-economic loss portion, in line with when that final assessment was determined
Regard must also be had to any pre-existing component to an employee's impairment. NEL in this case must be assessed solely on the compensable component.
This percentage split should have been identified as part of the examination conducted to gauge the overall percentage impairment.
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Example |
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An employee has a combination of a pre-existing condition and subsequent compensable aggravation. |
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If the employee's overall percentage impairment is quite high (say 50% whole person loss), but the compensable component is relatively minimal (say 10% whole person loss), it may be difficult for the employee to establish that ratings for NEL for the compensable component is anything greater than 0 or 1. |
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However, consideration should also be given to the impact any aggravation may have had on pre-existing conditions. |
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It may be that a work-related aggravation has “tipped the scales” and changed a previously manageable condition into one which is of much greater severity, even though the contributing compensable factor is small. |
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-thirteen-permanent-impairment/part-four-non-economic-loss/interim-impairments-become-final-impairments