If your injuries have been assessed as non-minor and you weren’t the driver at fault, you’re entitled to claim a lump sum. A lump sum claim is the only way to get support beyond 24 months after your accident, and these lump sum payments can be substantial.
Before you claim a lump sum, take some time to understand how the claim process works, to make sure you give your application the best possible chance of success. Then, when you’re ready, follow our step-by-step guide to lodging a lump sum claim.
Many injuries get worse over time, and psychological injuries can take some time to develop. So if your injuries have been assessed as minor but you believe your condition has worsened or you’ve developed symptoms of psychological injuries, you should consider claiming a lump sum. For example, you may have suffered a minor whiplash injury, but the pain medication you’ve been taking has started to cause you digestive issues, which are regarded as non-minor.
Even if you’ve previously lodged a dispute with the PIC on your personal injury benefits claim, and it was ruled against you, if your injuries are re-classified as non-minor then you can still lodge a lump sum claim.
Please call our free advice line if your injuries have deteriorated and you would like to have them re-assessed.
Lump sum claims include compensation for:
|Lump sum payment||
|Future income loss||
|Pain and suffering||
Here’s an example of how a future income loss lump sum claim could run.
Firstly, the twelve weeks Joe had off for medical treatment and rehabilitation will be paid to Joe as part of his personal injury benefits at 95% of his pre-accident earnings. So his past lost earnings are:
12 weeks off work @ $1500 per week @ 95% = $17,100.
Joe will be able to claim a further lump sum to cover the reduction in his future earnings capacity.
Based on a retirement age of 68, Joe’s future lost earnings are:
1 day a week x 18 years = $280,800.
Please note that this is a basic formula and the final calculation is more complicated, indexing Joe’s earnings for inflation and also taking into account the severity of the injury. But we have used this as an example to illustrate the basis of how lost earnings are calculated.
To give yourself the best possible chance of success, you should talk to a specialist CTP lawyer before you lodge your claim for a lump sum, or if you disagree with the insurer’s decision on the value of your future earnings. Call 1800 888 529 for free legal advice.
Lump sum payments for pain and suffering are based on a fixed scale that specifies how much you’ll get depending on the injury you’ve sustained. However, in most cases the actual amount you receive will be reduced depending on the extent of your injury, on a sliding “partial” scale.
For example, the scheme provides a substantial payment for the loss of use a limb, so if you’ve suffered a partial loss of use, the payment will be reduced accordingly.
This is where it gets very subjective, and a specialist CTP solicitor will argue your case based on what’s reasonable and get the best outcome for you.
The biggest mistake you can make is to submit your own lump sum claim for pain and suffering and simply accept the insurer’s decision – if you do, you’ll almost certainly be a lot worse off than if you have a solicitor arguing your case. Keep in mind that your solicitor’s fees will be paid out of your settlement, so as long as the solicitor caps their fees at a reasonable rate you’ll be better off financially.
If you’ve looked at the SIRA website or any of the insurers’ websites, you may have noticed that there’s very little information on how to actually lodge a claim for a lump sum, and no information on how to increase your chances of success.
We’ve taken the best tips from our CTP specialists and summarised them into one article – so if you’re ready to proceed with a claim, you can follow our step-by-step guide to lodging a lump sum claim.
If you’re ready to proceed, you can follow our step-by-step guide to lodging a lump sum claim.
Don’t delay, as strict time limits apply.
Call our free advice line if you have further questions.