Compensation Payout Guide.
If you’ve been injured in an accident and incurred any treatment costs or had any time off work to recover, then it’s likely you’re entitled to a compensation payout. This guide explains how compensation payouts in NSW are calculated, and how to make sure you get the maximum compensation payout you’re entitled to.
Are you entitled to a compensation payout?
To understand whether you’re entitled to a personal injury compensation payout, ask yourself these three questions:
- Have you been injured or become ill while you were working, in a traffic accident, in a public place or through medical negligence?
- Have you had any medical or treatment costs?
- Have you had any time off work?
If you answered yes to question one and question two or three, then it’s likely you’re entitled to a compensation payout.
How is your compensation payout calculated?
Here’s how your injury compensation payout is generally calculated in NSW:
- If you’ve had time off work, you’ll be paid back for your lost wages
- If you’ve had medical or care expenses, these will be paid back to you
- Depending on the severity of your injuries, you may also be entitled to payments for future lost wages and pain and suffering
The actual compensation payout amount will take into account a range of factors including how you were injured, your age and the extent of your injuries.
If you’re making a CTP compensation claim, you can use this car accident compensation calculator to estimate your compensation payout entitlements.
What are some examples of compensation payouts?
Here are some of the more common personal injury compensation payouts.
Whole person impairment payout
Whole person impairment (WPI) is a scale used to measure the severity of your injuries – the higher your WPI, the higher your compensation payout. For example, if you’ve been injured in a car accident and have minor injuries with a WPI of less than 10%, then you’ll receive limited benefits. However, if you have non-minor injuries with a WPI over 10%, you can also claim lump sums for pain and suffering and future loss of earnings. This can amount to a substantial compensation payout.
Pain and suffering compensation payout
The majority of pain and suffering compensation payouts fall into the 0-$120,000 range, but some can run into the hundreds of thousands of dollars. Pain and suffering is a payment for the harmful impact the injury has had on your life, physically and mentally. It’s also referred to as general damages or non-economic loss.
Serious injury claim payouts
Serious injury claim payouts can run into the millions of dollars. Personal injury compensation payouts are to cover your losses, and if your injury is severe, this can include future loss of earnings (i.e. compensation for the earnings you would have made if you hadn’t been injured) and non-economic loss in the form of pain and suffering.
Back injury compensation payouts
Back injury compensation payouts can also be substantial, especially where the back injury prevents you from working. In severe cases, a back injury compensation payout may include payment for future loss of earnings and pain and suffering. Back injury compensation payouts for less serious injuries, for example where a full recovery is made, will generally be limited to economic losses such as lost wages, medical and treatment expenses.
PTSD compensation payouts
PTSD is a considered a psychological injury, and compensation payouts for PTSD can be substantial. In severe cases where PTSD is job-related and the sufferer cannot return to work, compensation payouts in Australia may be available through workers compensation as well as through total and permanent disability insurance policies connected with superannuation funds.
What’s a reasonable compensation settlement for pain and suffering?
The majority of pain and suffering compensation payouts fall into the 0-$120,000 range, but some can run into the hundreds of thousands of dollars.
Here are some simple guidelines to understand how much is a reasonable settlement for pain and suffering:
- If you’ve been in a motor accident and you’re making a CTP claim, you’re entitled to pain and suffering if you exceed the 10% WPI threshold – this is a measure of the permanent damage the accident caused, and your pain and suffering payout will be determined by a judge.
- If your injury was caused by an accident in a public place or by medical negligence, a judge will assess your WPI and award pain and suffering if your WPI is greater than 14% of the “most extreme case”.
How do you respond to a settlement offer?
Don’t be tempted to accept the first compensation payout settlement offer you receive. When you make a claim for compensation, you’re claiming against the insurer of the person who caused your injury, and it’s not in the insurer’s interest to pay out your maximum entitlements. Getting the right compensation advice from a specialist lawyer is essential. Even if you decide not to engage a lawyer, it makes sense to get free legal advice and understand your options.
How do you get the maximum compensation payout?
Here are some tips to make sure you receive the maximum injury compensation payout you’re entitled to:
- Make sure your claim is thorough and submitted on time. If you leave important details out of your claim, it can reduce your payout significantly and you may never know what you’ve missed out on.
- Be thorough with the evidence you submit. For example, if you’re claiming expenses, you need to submit evidence such as receipts for all the expenses you’re claiming.
- Make sure your injuries have been thoroughly assessed. This is really important – the injury from your accident could lead to additional injuries over time, and if it does, you’re entitled to additional compensation.
What’s the average compensation payout in NSW?
Compensation settlements vary significantly, but here are some NSW statistics on CTP and medical negligence compensation payouts:
- In the 19 months to June 30, 2019, the average compensation payout in NSW for a car accident injury was $10,984. A total of $179.5 million was paid out in benefits and 16,342 CTP claims were submitted*.
- According to data obtained by the Northern Daily Leader**, the average compensation payout by the Hunter New England Health Service in NSW between October 1, 2016, and October 1, 2018 was more than $650,000. However, this figure is considered high and it’s likely that the average across NSW is lower.
*Average CTP payout NSW data according to SIRA Green Slip scheme quarterly insights, June 2019.
Where can I get free legal advice on compensation payouts in NSW?
Law Partners Personal Injury Lawyers is Australia’s largest specialist personal injury compensation law firm, with legal teams that specialise in each area of personal injury law. They have 15 offices across Sydney and NSW.