Impairment Benefits
What does ‘impairment’ mean?
Impairment is the loss or derangement / alteration / change of a body part or function that may result after an injury.
Some examples of impairment are:
- An amputated thumb as a result of a laceration
- Decreased cognitive function as a result of a closed head injury
- Spinal nerve damage as a result of a disc prolapse back injury
Impairment may result in temporary or permanent changes to a body part or function.
An impairment is considered ‘permanent’ when there is little change in the injury following a period of recovery with or without medical treatment. In some instances recovery may lead to a return to normal function and as a result there may be no permanent impairment.
What is an impairment benefit?
Workers who have a permanent impairment directly resulting from a work-related injury or illness covered by WorkSafe may be able to receive a monetary lump sum entitlement called an ‘impairment benefit’. This payment is separate from any weekly payments and medical and like services a worker may receive.
In order to decide whether a worker is able to receive an impairment benefit, a worker must have their permanent impairment assessed in order to meet or exceed a minimum percentage score.
Guidelines for assessing impairment
When measuring impairment, WorkSafe and WorkSafe agents follow Victorian legislation called the Accident Compensation Act 1985. This outlines who is eligible for impairment benefits, how and when WorkSafe must conduct assessments, and when and how much WorkSafe can pay.
The legislation provided in the Accident Compensation Act 1985, states that when assessing workers for the purposes of determining their level of permanent impairment, the “American Medical Association Guides to the Evaluation of Permanent Impairment, 4th Edition” is to be used.
These guides provide specific assessment instruction in orderto measure how much a work-related injury or illness has affected the body part or function involved. Each injury is given a percentage score, based on the level of impairment. This is described as the ‘degree of impairment’ and is provided as a percentage score.
Who assesses the permanent impairment?
Assessments of impairment are conducted by doctors called ‘Independent Impairment Assessors’
These doctors are specially trained in how to apply the “American Medical Association Guides to the Evaluation of Permanent Impairment, 4th Edition” to a worker’s injury.
Workers who have lodged an impairment benefit claim are required to attend an impairment examination with an Independent Impairment Assessor. If a worker has more than one work related injury from the same incident at work he or she may need to attend more than one impairment examination.
Who is eligible to receive an impairment benefit?
Any person who is a worker and has an injury on or after 12 November 1997 as a result of a workplace incident may be eligible to claim for an impairment benefit. For definition of ‘worker’ please refer to the section on “Who is a worker?”
There are minimum impairment scores that have to be met before a worker can receive an impairment benefit. If your claim is accepted and you are assessed with a degree of physical impairment of 10% or more, and/or a psychiatric impairment of 30% or more as a result of the one workplace incident you may be entitled to receive a lump sum benefit.
For further information:
Independent Impairment Assessors – For information regarding the role and requirements of an impairment assessor please follow the following link, Independent Impairment Assessors’
Legal Practitioners – For information regarding the S98C/E Impairment Benefit protocols, please refer to the following link Section 98C & E Impairment Benefit Protocols
Further Information:
For further information to assist your query in relation to S98C/E Impairment Benefits, please contact WorkSafe at:
• info@worksafe.vic.gov.au or
• Advisory Service
