6.4.2.6 Calculate settlements
ICRP settlements
ICRP Intensive Case Review Program settlements need to be calculated and occasionally, amended. Settlement A lump sum payment that replaces an injured worker's right to ongoing weekly compensation. amounts can only be amended if the settlement has not yet been paid to the worker.
The settlement amount is calculated by applying the following formula:
A x B where:
- A is the net weekly payment rate
- B is the number in Column 2, alongside the number in Column 1, that corresponds to the worker’s age in years on their next birthday after the date when WorkSafe or the Agent received the worker’s EOI Expression of Interest.
Note: If the worker is not receiving weekly payments of compensation because of receiving a superannuation or retirement benefit lump sum or became eligible to receive weekly payments, the date from which the worker’s next birthday is calculated is the day after the preclusion period expires.
Example
The settlement amount for a worker who is approaching 40 years of age, with a weekly compensation rate of $500, is calculated this way:
A = 500 and B = 283
$500 x 283 = $141,500
Other settlements
Other settlements need to be calculated and occasionally, amended. Settlement amounts can only be amended if the settlement has not yet been paid to the worker.
The settlement amount is calculated by applying the following formula:
A x B where:
A is the net weekly payment rate
B is the number in Column 2, alongside the number in Column 1, that corresponds to the worker’s age in years on their next birthday after the date when the Agent received the worker’s EOI.
Note: If the worker is not receiving weekly payments of compensation because of receiving a superannuation or retirement benefit lump sum or became eligible to receive weekly payments, the date from which the worker’s next birthday is calculated is the day after the preclusion period expires.
Example
The settlement amount for a worker who is approaching 40 years of age, with a weekly compensation rate of $500, is calculated this way:
A = 500 and B = 74
$500 x 74 = $37,000
Recalculate settlements
Settlement amounts may need to be recalculated because the incorrect information was used in the calculation.
Note: Settlement amounts can only be amended if the settlement has not yet been paid to the worker.
If the Agent becomes aware that they have calculated an incorrect amount in the written advice sent to the worker, they must recalculate the settlement amount and notify the worker in writing.
See: Costs to obtain financial or legal advice
Reimbursement of financial & legal advice after an amended settlement
If the worker receives advice from the Agent notifying them of an amended settlement amount, then the Agent pays/ reimburses the cost of financial advice if the:
- worker has already obtained financial advice
- amended settlement amount is both:
- 5% greater or less than the previously advised settlement amount and
- $5,000 greater or less than the previously advised settlement amount.
- If the worker is advised of an amended amount:
- before they lodge an application for settlement, they have six months from the date of the amended response to lodge their application
- after they lodge an application but before settlement is paid, they have 42 days to seek fresh advice and confirm or deny their original application for settlement.