The following table provides an example of how ratings for non-economic loss translate into a dollar figure. Figures are based on 1995 payments.
|
RATE |
TYPE OF LOSS |
||||
|
P & S |
M, SR & RA |
OTHER |
LIFE |
||
|
0 |
$0 |
$0 |
$0 |
$0 |
|
|
1 |
$685.57 |
$832.21 |
$1373.14 |
$1373.14 |
|
|
2 |
$1373.14 |
$1664.41 |
$2746.28 |
$2746.28 |
|
|
3 |
$2059.17 |
$2496.62 |
$4119.42 |
$4119.42 |
|
|
4 |
$2746.28 |
$3328.83 |
$5492.56 |
$5492.56 |
|
|
5 |
$3432.85 |
$4161.03 |
$6865.71 |
$6865.71 |
|
After assessing the NEL claim, there may be many issues that result in a rating being raised or lowered.
This, in turn, will increase or decrease the amount of payment to be awarded to the employee under section 27 of the Act.
Particular regard should be had to the employee's history of injury or illness and the effects the impairment has had on the employee's life.
Often, an employee may consider his or her impairment to have an effect that is more severe than is reasonable for the condition. This is quite a natural perception.
If interviewing the employee, explain, using examples of levels of severity, what is considered to be appropriate to each of the ratings.
As a safeguard, become familiar with the claim before interviewing the employee.
Permanent impairment and NEL calculations are done together. There is an Excel calculator attached to this volume. This automatically calculates what an employee's total entitlement will be. Only the assessment figures need to be entered.
However, it is still important to understand the rationale behind how calculations are made.