A motor vehicle accident can severely impact your lifestyle and ability to support yourself financially. This is why insurance schemes like Compulsory Third Party or CTP insurance are there to offer assistance to drivers recovering from an accident.
If your accident was particularly severe then you may be eligible for a lump sum compensation payout to help support you as you recover from and live with your injuries. There are two main types of lump-sum compensation claims you might be eligible for if you have been involved in an accident an sustained non-minor injuries:
- Compensation for Past and Future Income Loss: This lump sum is calculated based on your earnings before the accident, and the extent that your injuries have affected your past earnings and have the potential to affect your future earnings. In order to be eligible for this lump-sum your injury must be diagnosed as non-minor, which means that they need to be a fracture, nerve damage, organ damage, PTSD, depression or equivalent injury. You must also not be at fault for the accident to be eligible.
- Compensation for Pain and Suffering: Lump-sum payments for pain and suffering are intended to compensate individuals that have experienced a reduced quality of life due to a motor vehicle accident. In addition to not being at fault for the accident and having injuries that are considered non-minor, you will also need to prove that your whole person impairment is 11% or more as determined by a trained medical assessor.
What are the most common reasons for a lump sum claim to be rejected?
You were deemed at fault for the accident
If you were deemed at fault for the accident then unfortunately you are not eligible for lump-sum compensation. If you were partially at fault for the accident then you may be eligible for a reduced lump-sum payment, reduced to account for the ‘contributory negligence’. Remember that while you may not be eligible for a lump-sum payment, you may still be eligible for other benefits like compensation for medical and treatment expenses.
Your injuries were determined to be minor
In order to claim either Past and Future Income Loss or Pain and Suffering your injuries must be assessed as non-minor. Minor injuries are things like soft tissue damage to muscles, ligaments, fat or fibrous tissue. They might also include feelings of guilt, anger, fear or sadness that have not been diagnosed as a psychiatric illness. Sometimes however injuries that start off as minor might develop into non-minor injuries over time, therefore if you believe that your injury has become more serious it may be worthwhile to try to get them reassessed. If they are reassessed as non-minor then you may be eligible for a lump sum payment.
You were assessed as having a whole person impairment of less than 11% when applying for Pain and Suffering
In order to claim Pain and Suffering compensation, you must have a whole person impairment of 11% or more. If a trained medical assessor determines that you have an impairment of less than 11% you will not be eligible for the pain and suffering lump-sum payout. The only way to become eligible is if you can have the assessment changed, which can be difficult if you don’t have assistance from a trained compensation lawyer.
You did not make your claim in time
Lodging your claim for a lump-sum payout must be made within a strict timeframe after the accident. In order to successfully lodge your claim you must apply within three years of the accident. If you have a whole person impairment of less than 11% then you must lodge between 20 months and 3 years, while if you have a whole person impairment of 11% or more then you can lodge at any time.