Compensation for Non-Economic Loss

Compensation for Non-Economic Loss

Section 27(1) provides that a member to whom compensation is payable under s 24 is also entitled to lump-sum compensation in respect of non-economic loss suffered as a result of the injury or impairment:

27(1)Where an injury to an employee results in a permanent impairment and compensation is payable in respect of the injury under section 24, Comcare is liable to pay additional compensation in accordance with this section to the employee in respect of that injury for any non-economic loss suffered by the employee as a result of that injury or impairment.

The amount of compensation payable is dived into two equal amounts:

27(2)The amount of compensation is an amount assessed by Comcare under the formula:

($15,000 x A)  +  ($15,000 x B)

where:

Ais the percentage finally determined by Comcare under section 24 to be the degree of permanent impairment of the employee; and

Bis the percentage determined by Comcare under the approved Guide to be the degree of non-economic loss suffered by the employee.

The “B” amount is determined under Part B of the Guide and is based on the scores under the following Tables, combined in accordance with Tables 5 and 6:

Table 1 — Pain and Suffering

Table 2 — Loss of Amenities

Table 3 — Other Loss

Table 4 — Loss of Expectation of Life

Table 5 — Combined Value Calculation

Table 6 — Final calculation

Note that certain impairments which became permanent before 1 December 1988 may attract a non-economic loss payment under s 27 as a result of the Federal Court decision in Schlenert v AOTC (1994).  However, as a result of legislative amendment to s 27 by the Safety, Rehabilitation and Compensation and Other Legislation Amendment Act 2001, no entitlement to an NEL payment for a pre-1/12/88 impairment arises where the claim for NEL was made on or after 7 December 2000.

Historical rates – s 27(2) non-economic loss formula amounts

Formula amounts - s 27(2)