If you’ve been injured at work in Queensland, you might be offered compensation to help cover your losses. However, understanding the differences between a statutory lump sum offer and a common law lump sum settlement is crucial in deciding which path to take. Both types of compensation aim to assist you financially, but they operate differently.
Statutory Lump Sum Offer
A statutory lump sum offer is made under the Queensland workers’ compensation scheme. After you’ve reached maximum medical improvement (MMI)—meaning your condition is stable and not expected to improve further — WorkCover Queensland or your employer’s insurer will assess your level of permanent impairment (PI). Based on this assessment, you may be offered a lump sum payment.
This type of offer is based on a set formula and is designed to provide compensation for the permanent injury you’ve sustained. It’s a straightforward process, and accepting this payment is often quicker. However, it’s important to note that once you accept a statutory lump sum offer, you generally forfeit your right to pursue further compensation through a common law claim, even if your injury worsens over time.
Common Law Lump Sum Settlement
A common law lump sum settlement, on the other hand, allows you to seek compensation by filing a negligence claim against your employer. This type of claim considers the broader impact of your injury, including pain and suffering, loss of earnings, future earning capacity, and medical expenses. Unlike the statutory offer, a common law settlement is not capped by a formula, which can lead to a potentially larger payout, especially if your injury has significantly affected your life and ability to work.
Pursuing a common law claim is a more complex and time-consuming process, often requiring legal representation and medical evidence. However, it provides an opportunity to receive compensation that more accurately reflects the full extent of your losses.
Making the Right Choice
Choosing between a statutory lump sum offer and pursuing a common law lump sum settlement is a significant decision that can impact your financial future. Before making a choice, it’s advisable to seek legal advice to understand the potential benefits and drawbacks of each option. A lawyer can help you navigate the process and ensure you make an informed decision that best suits your circumstances.
In summary, while a statutory lump sum offer provides a quicker resolution, a common law settlement offers the potential for a more substantial compensation amount. Understanding the differences between the two can help you make the best decision for your recovery and financial well-being.
