DRCA and MRCA compensation payments include incapacity payments for economic loss, permanent impairment (PI) payments for non-economic loss and a Special Rate Disability Pension (SRDP) payment (under MRCA).

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MRCA

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If you have an injury or disease which is accepted as related to your ADF service (i.e. an accepted condition) then you may be entitled to receive compensation from DVA if:

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• you have a resulting impairment; and

• the impairment is likely to continue indefinitely; and

• your injury or disease has stabilised.

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PI compensation is paid in respect of any permanent physical and/or mental impairment in combination with any lifestyle restrictions resulting from your accepted conditions.

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All accepted conditions are combined, using a combined values table, to arrive at a total impairment rating on a scale from zero to 100 points. The impairment rating will then be combined with a lifestyle rating, from zero to seven, to determine the compensation payable.

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An interim payment of compensation for permanent impairment can be made where the impairment is 10% or more but a final assessment of the degree of impairment has not been made (e.g. because the degree of impairment is not yet stable).  An interim payment of permanent impairment (PI) compensation can be made under section 75 of the MRCA

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NOTE: Section 69 of the MRCA requires that PI compensation is not payable unless a person's WPI constitutes 10 IPs. IPs from more than one accepted condition can be combined to meet the 10 IP requirement.

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DVA strongly recommends that you seek advice from a suitably qualified financial adviser and lawyer, especially if you have a determination of 50 impairment points.

 

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DRCA

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Compensation is payable for an impairment resulting from an injury which is permanent. In the DRCA, “permanent” means “likely to continue indefinitely” (subsection 4(1) of that Act).  For the purpose of determining whether an impairment is permanent under the DRCA, DVA must have regard to all of the matters in subsection 24(2) of that Act, namely the following:

• the duration of the impairment;

• the likelihood of improvement in the employee’s condition;

• whether the employee has undertaken all reasonable rehabilitative treatment for the impairment;

• any other relevant matters.

 

An impairment will generally be regarded as permanent when the recovery process has been completed, that is, when the full medical treatment has been achieved.

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The principles of assessment are:

• Impairment and

• non-economic loss 

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Evaluation of whole person impairment is a medical appraisal of the nature and extent of the effect of an injury or disease on a person’s functional capacity and activities of daily living.  Therefore, the impairment tables in Division 1 are based on the concept of “whole person impairment”, which is drawn from the AMA Guides.

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Multiple impairments: A single injury may give rise to multiple loss of function. When more than one table in Division 1 applies to a single injury, separate scores are allocated to each functional impairment.   The scores are combined using Table 14.1 (Combined values chart). This is also in relation to a Double assessment.

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Provision may be made under subsection 25(1) of the DRCA for interim assessment and payment of compensation.  Assessment for an interim payment will apply mainly in cases undergoing active treatment where the final outcome of the treatment is not known but a minimum permanent impairment can be measured.  Ensuring that further treatment will not reduce the impairment, which must be at least 10%.

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The concepts of “employability” and “incapacity” are not included in the assessment of impairment and non-economic loss. Incapacity is influenced by factors other than the degree of impairment and is compensated by weekly payments which are in addition to these payments.

 

Payment of a lump sum amount of compensation under the DRCA for permanent whole person impairment does not affect other compensation entitlements under DRCA. For example, compensation entitlements for incapacity for work, household and attendant care services and medical expenses related to a compensable injury can still be paid after such a lump sum is awarded.  You might also be entitled to a further lump sum payment of compensation under the DRCA if the degree of permanent impairment increases after an earlier lump sum is paid.

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There are ‘offsetting’ provisions to prevent your being compensated under the DRCA and also under the VEA for the same incapacity or service-related death of a member. Any lump sum you may receive under the DRCA might affect any Disability Compensation Payment or Income Support Pension you receive under the VEA.

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Additional

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When DVA advises you of an entitlement to permanent impairment compensation, you will be provided with an election form enabling you to indicate your choice to institute action for damages under Common Law. Under limited circumstances, if permanent impairment compensation (non-economic loss) becomes payable to you, you will receive a DVA letter asking for you to advise the Department in writing if you intend to institute an action or proceeding against the Commonwealth for damages for that non-economic loss. There are restrictions that may affect your outcome with this payment.

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DVA provides detailed and further claims information.  This is NOT the full content.  This is just a brief overview to direct you in the right direction and to have a basic understanding of the permanent impairment information.  Please use all the links to the full context of information and to see other claimable components and assessments.  

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This is not a guide for advice.  You should always seek advice from a qualified and insured financial advisor, advocate or lawyer.