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12.7.4 Determining the compensation factor

Last amended 
18 December 2014

In transitional cases, delegates will likely encounter situations where the conditions being assessed arise from a combination of both peacetime and warlike/non-warlike service.

In determining the relevant compensation factor in these situations, delegates will need to apply the ‘Combined Ratings’ formula in Chapter 23 of GARP M.  This is commonly referred to as the weighted compensation factor.

How are VEA and DRCA conditions treated for the purpose of determining the weighted compensation factor?

It is not explicit in Chapter 23 or Chapter 25 of GARP M that impairment arising under VEA and DRCA be treated a particular way when determining the weighted compensation factor. This may be as a result of Chapter 23 being drafted based on simple MRCA-only scenarios, and is reflected in the simple example provided in Chapter 23, where only one condition arose from warlike service and only one condition from peacetime service. This example would reflect the exception rather than the norm, as most claims for MRCA PI involve more than one condition accepted under the service differentials.

The agreed methodology is as follows:

  • conditions accepted under the VEA should be treated as if they relate to warlike/non-warlike service, and
  • conditions accepted under the DRCA should be treated as if they relate to peacetime service, or
  • where a condition is accepted under both the VEA and the DRCA, treat the condition as if it were related to warlike/non-warlike service.

In bringing across VEA and DRCA conditions, it may be necessary to apply apportionment under Chapter 20 of GARP where the client has two or more conditions accepted under two different Acts which affect the same body system.  As per a single Act situation, apportionment is used to establish the separate contribution each condition makes to the overall functional impairment. It may be required in some cases to determine the appropriate impairment rating and the relevant compensation factor to be applied.