Everything you need to know about compensation

by adminMarch 20, 2020

Voiced by Amazon Polly

The English language is complex, with many words, including compensation, often having more than one meaning. In this instance, were going to discuss compensation in the context of personal injury law.

What is compensation?

Compensation is something, typically money but can be anything of value awarded to a victim or their dependent in recognition of a personal injury, death, financial loss or suffering.

Some commonly used synonyms of compensation include;

  • recompense
  • repayment
  • payment
  • reimbursement
  • remuneration
  • requital
  • indemnification
  • indemnity
  • redress
  • satisfaction
  • damages
  • reparations
  • compo
  • guerdon
  • meed
  • solatium

Compensation falls under both common and statutory law. Although always in the form of money, payments can be small weekly payments or bigger lump sums.

How does compensation work?

In Australia compensation works in a number of different ways depending on an individuals situation and how it’s being claimed.

Statutory claims

Usually, only minor injury claims fall under statutory law.

Under statutory law, compensation is designed to bridge the gap between injury and recovery. Generally, statutory claims made against an insurer supplement a person’s wages and medical bills while they are unable to work or work in the same capacity. Once a person has recovered, payments stop, they return to work and the case is closed.

Generally, under statutory law, there is no option to make a claim for any future damages.

Common law claims

Generally, all no-fault injury claims which meet a required threshold fall under common law.

Under common law, compensation is designed to put a plaintiff in a position they were in before having an accident and are often in the form of a lump sum.

Who’s eligible?

Under common law, anyone who has been injured or harmed due to someone else negligence is entitled to be compensated. This means that if an individual can not prove that somebody else was wholly or at least partially at fault, they may not be able to recover damages. However, under statutory law, individuals in many instances can still make a claim, even if they were at fault for the accident which caused their injuries.

How to get it?

Compensation can be claimed by yourself or with the help of a legal representative via no win no fee.

In most cases, minor claims which fall under statute law do not require legal representation unless a dispute arises. To make a statutory claim, you simply need to liaise with the insurer and follow their protocol.

Any type of claim which falls outside of the above is most commonly pursued by plaintiffs with the help of a solicitor. Common law claims can be complex and require a deep understanding of both prior cases and regulations imposed by statute.

How long does it take?

Again, this depends whether an individual is making a statutory claim for compensation or a common law claim. Generally, claims made under statutory law are paid almost instantly and may come on the form of a one-off help payment or weekly benefits, such as wage replacement.

Common law claims generally take anywhere between 1 and 3 years to settle. An insurer will generally not pay out until a plaintiff’s injuries have fully healed.

What are the different types of compensation?

  • Road traffic accident
  • Clinical negligence
  • Workplace injury
  • Public liability
  • Criminal injuries
  • insurance policy

How much compensation can an individual claim?

Under common law, there are numerous heads of damage, however, the bulk of a claim is made up of economic loss and non-economic loss.

Non-economic loss

Non-economic loss refers to compensation to make up for any pain and suffering. There are numerous Acts in each state and territory that impose several limits on the amount of compensation a plaintiff can receive for non-economic loss arising from personal injury or death.

Economic loss

Economic loss refers to lost income whether that be past or future lost earnings, medical expenses, travel coats or care.

Did you know that we have developed an industry-leading tool that can accurately calculate the amount owed to individuals for different types of accident and injuries?

Claiming compensation for a road traffic accident

Different states have different legislation, however, claimants injured in road accidents may have a statutory claim, a common law claim or both.

Broadly speaking the following generally falls under statutory law in most states.

  • Minor injures below 7% wpi regardless of fault
  • At-fault victims with catastrophic injures

Anything outside of the above is governed by common law such as;

  • No-fault njuries categorised above 7% wpi
  • Fatalities

Note: Only a practising solicitor in your jurisdiction can make this determination.

Facts about weekly benefits and lump sum compensation for work injuries

As with road accident victims, employees who have suffered a work injury may have the option to make both types of claims simultaneously or separately.

Work injury compensation is a little simpler in the fact that a plaintiff can only make a common law claim of they can prove employer negligence.

Statutory WorkSafe or WorkCover weekly payments are often paid without any resistance, however, in some cases, employees find it difficult accessing their entitlements. More often though problems and disputes arise after a claim is accepted such as;

  • Employees being pressured to return to work to soon
  • weekly payments being cut-off early
  • unfair dismissal

Clinical negligence compensation

Claims for medical negligence fall under common law only.

Public liability damages

As above, public liability also falls under common law.

Do you need to make a claim for compensation?

If you believe that you or a loved one is entitled to compensation but wondering where to start, speak to the experts at Millner and Knight. We can quickly help you undertand your rights and entitlements along with providing you with free and impartial advice on what to do next.

To speak with a member of our team who specialises in cases like yours call 1800 106 107. All calls are free, confidential and there will be no pressure to proceed with things after our initial conversation.