Chapter 25 of GARP M 2026 only applies to MRCA PI claims lodged from 1 July 2026. It prescribes the method for calculating the compensation payable under the MRCA for the PI claim by:
Working out the notional amount payable under the MRCA in respect of all service-related conditions (regardless of the Act they were originally accepted under), and
Reducing that amount by the notional amount payable in respect of the baseline impairment rating.
The amount of MRCA PI compensation payable for the PI claim is subject to prescribed offsets of impairment compensation payments under the DRCA and/or the VEA, as well as permanent impairment amounts paid under the MRCA.
Step 1
Step 1 requires the delegate to use the GARP M 2026 to assess, as at the date of the MRCA PI determination, the combined effect of all service-related conditions, to work out the notional MRCA PI weekly in respect of those conditions. This will be undertaken, where possible and appropriate, using contemporaneous medical evidence.
For Step 1, ‘old DRCA accepted conditions’ are treated as peacetime and ‘old VEA accepted conditions’ are treated as warlike/non-warlike, when applying Chapter 23 and working out the compensation factor.
In respect of ‘old DRCA accepted conditions’ that are also ‘old VEA accepted conditions’, delegates must only assess the ‘old VEA accepted conditions’ and treat them as warlike/non-warlike.
Step 2
Step 2 requires delegates to compare the baseline impairment rating (worked out using Chapter 26) with the impairment rating used at Step 1, to assess whether there has been an increase in impairment by 5 points from the baseline impairment rating.
If there has been an increase by 5 points, delegates can proceed to Step 3. If there has not been an increase by 5 points, the MRCA PI claim is rejected.
Step 3
Subject to Step 2, Step 3 requires delegates to use the GARP M 2026 to work out the MRCA PI weekly that would be payable for the baseline impairment rating.
At this step, delegates should use the lifestyle rating that is the higher of the ‘shaded area’ in accordance with Chapter 23 of GARP M 2026.
Step 4
Step 4 requires delegates to reduce the MRCA PI weekly amount at Step 1, by the MRCA PI weekly amount at Step 3 for the baseline impairment rating.
Step 5
The MRCA PI weekly amount identified at Step 4 is the provisional MRCA PI weekly amount payable for the PI claim, subject to Steps 6 and 7.
Step 6
At Step 6, the delegate is deciding whether the amount of compensation already received for all accepted conditions exceeds the maximum MRCA PI weekly amount.
Step 6 asks the delegate to add the following amounts together:
the amount worked out at Step 4, plus,
the amount of disability compensation payment under Part II or IV of the VEA, plus,
Any previous MRCA PI weekly compensation amounts paid, plus,
the weekly equivalent of PI lump sums paid under the DRCA.
If the total of these amounts exceeds the maximum MRCA PI weekly rate, the delegate must proceed to Step 7. Alternatively, if the total of these amounts is less than the maximum MRCA PI weekly compensation rate, the amount payable is the amount worked out at Step 4.
Step 7
The delegate has already established that the total amount worked out at Step 6 exceeds the maximum weekly compensation amount payable under MRCA.
At Step 7, the delegate is working out the amount payable under MRCA by subtracting the MRCA PI excess from the amount worked out at Step 4.
MRCA PI excess equals:
- the amount worked out in Step 6(b), plus,
- DRCA converted lump sums to periodic payments, plus,
- Step 4 amount, plus,
- Any previous MRCA PI weekly compensation amounts paid, minus,
- maximum MRCA PI rate.
Therefore, the final amount of MRCA PI payable is:
- The amount worked out at Step 4, minus
- MRCA PI excess.