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6.4 Settlements


6.4.1 General settlements information | 6.4.2 ICRP settlements | 6.4.3 Financial & legal advice | 6.4.4 Appendices


A settlement is a one-off lump sum paid to a worker for loss of earning capacity.

When a settlement is accepted and paid, a worker has no further claim to ongoing compensation for that injury, other than for medical and like expenses. Agents must ensure that the worker has accessed all other entitlements (such as impairment benefit) before a settlement is offered.

To be eligible for a settlement, a worker must satisfy threshold legislated criteria.

Three types of settlement

There are three types of voluntary settlements which are established mainly by reference to the date of injury:

Intensive case review program (ICRP)

Available to workers injured between 12 November 1997 and 19 October 1999.


WorkCare workers

Available to workers injured between 4pm on 31 August 1985 and 30 November 1992 - no longer applicable.


Other workers

Available to workers:


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Eligibility criteria apply throughout settlement process

Agents must ensure workers continue to meet the eligibility criteria for the relevant subdivision throughout the settlement process. If a worker is no longer entitled to weekly payments, they will not be eligible for a settlement. If a termination of the worker’s weekly payments on any grounds has occurred, decisions on whether to offer a settlement should be deferred until the completion of any dispute process (including resolution of conciliation and subsequent court action).

Settlement initiation

The Agent may initiate the settlement process to eligible workers.

A worker may also start the settlement process by approaching their Agent.

Voluntary process

The process is voluntary and the worker can withdraw from the process at any time before an offer for settlement is made.


Settlement amount not reduced by payments received

SettlementA lump sum payment that replaces an injured worker's right to ongoing weekly compensation. amounts are calculated using a statutory formula and are fixed by law. Settlement amounts are not reduced by any weekly compensation received during the time it takes to process and pay the settlement.

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