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Compensation Law FAQ

Compensation Laws are complex and often confusing. The following questions and answers detail the most frequently asked questions that our clients as us every day. To see the answers, please click on the appropriate question below.

FAQ 1: DO I HAVE A CLAIM?
FAQ 2: ARE THERE TIME LIMITS?
FAQ 3: WHAT ARE MY RIGHTS TO COMPENSATION?
FAQ 4: WHAT DO I NEED TO PROVE?
FAQ 5: HOW IS THE COMPENSATION PAID, IE, PERIODICALLY OR IN A LUMP SUM?
FAQ 6: HOW LONG WILL MY CLAIM TAKE?
FAQ 7: WILL I HAVE TO GO TO COURT?
FAQ 8: IS MY CLAIM LIKELY TO BE SETTLED?
FAQ 9: WHO PAYS THE LEGAL COSTS?
FAQ 10: WHAT COSTS WILL I HAVE TO PAY?
FAQ 11: WILL I HAVE TO PAY TAX ON THE COMPENSATION I RECEIVE?
FAQ 12: WHAT WILL THE INSURER PAY WHILST THE CASE IS BEING PREPARED?
FAQ 13: CAN I GO BACK TO WORK?
FAQ 14: WHAT IF I LOSE?
FAQ 15: WHAT IF I AM HELD TO BE PARTIALLY TO BLAME FOR THE incident?
FAQ 16: WILL I HAVE TO SEE ANY DOCTORS?
FAQ 17: IS THE INSURANCE COMPANY LIKELY TO FOLLOW ME AROUND AND SPY ON ME?
FAQ 18: HOW OFTEN WILL I NEED TO SEE YOU?

Compensation FAQ 1: Do I have a claim?

Motor Vehicle Incident
If you have sustained personal injuries in a Motor Vehicle Incident and can prove that the incident was caused by the driver of a motor vehicle (even if the identity of that vehicle is unknown, for example, hit and run) even if you were partly responsible for the incident yourself, you are entitled to receive compensation or 'damages'.

Public Liability (Slip & Fall)

Public Liability compensation is awarded when you have suffered injuries which was not a motor vehicle or work incident. You may be entitled to receive compensation (i.e. damages) if you can prove that the incident was caused by negligence of a person or corporation, even if you were partly responsible for the incident.

Work Incident

Workers Compensation is awarded if you have been injured at work or have become ill because of your working conditions. As a consequence of this, you may be able claim compensation to cover both your time off work and your medical expense bills. If your injuries are found to be permanent, you may also be able to claim some lump sum compensation and possibly further lump sums for pain and suffering.
You may also have a claim for damages if your employer or another individuals negligence is responsible for your incident.

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Compensation FAQ 2: Are there time limits?

Motor Vehicle Incident
Ye, in motor vehicle compensation cases a completed signed claim form must be sent to the relevant insurer within 6 months of the incident. It is possible to submit your claim this time period in certain circumstances. However, it is important to submit the claim form in time, if possible.

Public Liability (Slip & Fall)
For public liability compensation claims, there is no need to submit a claim form, but it is advised you give a written notice to the person/company at fault as soon as possible. Court proceedings regarding public liability must be commenced within 3 years.

Work Incident
Yes. work incident claims require you submit a compensation claim within a specified time limit. Under s261 of the Workplace Incident Management and Workers Compensation Act 37714, a claim for workers compensation is to be made within 6 months of incident or of first becoming aware of the incident.

However, if your claim is made over 6 months after but within 3 years of when the injuries were sustained, your claim may still be accepted if you can explain why your claim was not made within 6 months. Your reason must be valid and must be reasonable. The claim can sometimes be made after 3 years if it is a death claim or claim for serious and permanent disablement of the worker. There are also instances where the claim can be accepted after the 3 year time limit.
A claim for damages must be made within 3 years of the date of incident, although there are some exceptions to that time limit depending on circumstances.

Compensation FAQ 3: What are my rights to compensation?

Public Liability (Slip & Fall)
Public Liability compensation is awarded when you have suffered injuries which was not a motor vehicle or work incident. You may be entitled to receive compensation (i.e. damages) if you can prove that the incident was caused by negligence of a person or corporation, even if you were partly responsible for the incident.

Work Incident
You have been injured at work or have become ill because of your working conditions. As a consequence you may be eligible to claim compensation to cover your time off work and to pay for your medical expenses. If your injuries are found to be permanent, you may also be able to claim some lump sum compensation and possibly further lump sums for pain and suffering.
You may also have a claim for damages if your incident has been caused by the negligence of your employer or someone else.

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Compensation FAQ 4: What do I need to prove?

Motor Vehicle Incident
If you can prove that the incident was caused by the negligence or fauly of a person/corporation, even if you were partly responsible for the incident, you may be entitled to receive compensation. The onus is on you (by us) to prove all aspects of your claim, on the balance of probabilities. The insurance companies do not have to prove anything except for the extent to which you may have been the cause of the incident.

Public Liability (Slip & Fall)

IF you can prove that your personal incident was sustained as a result of another person/corporation's negligence, you may be entitled to receive compensation (i.e. damages). Even if you were partly responsible for the incident, you may still be able to claim personal incident compensation.
The onus is on you (by us) to prove all aspects of your claim, on the balance of probabilities. The insurance companies do not have to prove anything except for the extent to which you may have been the cause of the incident.

Work Incident
That your employment has been a substantial contributing factor to your incident.

Compensation FAQ 5: How is the compensation paid, ie, periodically or in a lump sum?

Motor Vehicle Incident
Compensation will be paid in a once and for all lump sum, which will be tax free.

Public Liability (Slip & Fall)
Compensation will be paid in a once and for all lump sum, which will be tax free.

Work Incident
A combination of periodic payments and lump sum payments.

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Compensation FAQ 6: How long will my claim take?

Motor Vehicle Incident

The amount of time your compensation claim will take is dependent on the severity of the injuries and the type of claim. Your compensation claim will not be finalised until your injuries have stabilised and a long term prognosis can be made.
Most personal incident compensation claims should take less than 2 years. If the injuries stabilise reasonably quickly and a long term prognosis can be made, your claim can be finalised more quickly.

Public Liability (Slip & Fall)
This depends on the severity of the injuries you sustained and the type of compensation claim. Your claim will not be finalised until your injuries have stabilised and a long term prognosis can be made. Generally claims conclude within 2 years of the date of the incident. Of course, if the injuries stabilise reasonably quickly and a long term prognosis can be made, your claim can be finalised more quickly.

Work Incident
The length of time that will be involved in obtaining your personal incident compensation depends on a lot of factors. If your claim is not disputed, you will be paid the weekly benefits quickly. Any claim for permanent incident cannot be started until the incident has stabilised (this could take anything from weeks to years) depending on the nature of the incident. Once an incident has become permanent, and a claim can be made, it could take anywhere between 2 months and 9 months for a payment to be received, depending on whether agreement can be reached easily with the insurer, or whether your entitlements have to be determined by a hearing in the Workers Compensation Commission.
A claim for damages cannot be commenced until any dispute about permanent impairment is resolved. It will then normally proceed to mediation.

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Compensation FAQ 7: Will I have to go to court?

Motor Vehicle Incident
Over 85% of personal incident compensation cases settle without going to Court. In fact most claims settle without Court proceedings even being commenced. If liability has been admitted by the insurance company it is likely that your claim, if not settled, will be assessed by an assessor.

Public Liability (Slip & Fall)
Over 85% of personal incident compensation cases settle without going to Court. In fact most claims settle without Court proceedings even being commenced. If liability has been admitted by the insurance company it is likely that your claim, if not settled, will be assessed by an assessor.

Work incident
Probably not. If your claim is disputed, the compensation claim will be assessed by a WorkCover medical specialist or by an Arbitrator appointed by the Workers Compensation Commission. A claim for damages will probably be referred to mediation.

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Compensation FAQ 8: Is my claim likely to be settled?

Motor Vehicle Incident
Yes

Public Liability (Slip & Fall)
Yes

Work Incident
Yes

Compensation FAQ 9: Who pays the legal costs?

Motor Vehicle Incident
If your claim is successful the insurance company will pay most of the legal costs. You will pay the difference between what the insurance company has to pay and the actual costs. As a rule of thumb the difference is about one third. If you choose Stacks/Goudkamp as your legal representation, we will pay all the disbursements (e.g. fees for medical reports) and be reimbursed at the end of the case. In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements. The insurance company may however seek to recover its costs from you.

Public Liability (Slip & Fall)
If your claim is successful the insurance company will pay most of the legal costs. You will pay the difference between what the insurance company has to pay and the actual costs. As a rule of thumb the difference is about one third. If you choose Stacks/Goudkamp as your legal representation, we will pay all the disbursements (e.g. fees for medical reports) and be reimbursed at the end of the case. In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements. The insurance company may however seek to recover its costs from you.

As a result of the Civil Liability Act 37741 the following applies:

(a) If the verdict you receive from the Court is $100,000.00 or less, the maximum allowance for legal services provided to you by us or by a barrister, which the insurer must pay is 20% of the verdict or $10,000.00, whichever is the greater sum, e.g. if you receive a verdict from the Court of $20,000.00 the insurer will only have to pay legal costs, including barrister's fees, of up to $10,000.00.

(b) Costs for legal services do not include disbursements e.g. interpreter's fees, fees for medical reports, witnesses expenses.

(c) The restrictions on legal fees do not apply to the amount of costs payable by you, over and above the costs recoverable from the insurer (pursuant to our Costs Agreement). This means that if the total legal costs in successfully concluding your claim exceeds 20% of the verdict (or $10,000.00, whichever is greater), you will have to pay the difference. Fortunately we expect that we will be able to recover most of the legal costs from the insurer on the successful conclusion of your claim

(d) We cannot commence Court proceedings in your case unless we believe that your claim has reasonable prospects of success. We actually have to certify to the Court that we have this belief. This provision will make no material difference to the way we conduct cases because we never commence Court proceedings in a case unless we believe the claim has reasonable prospects of success.

Work incident (workers compensation)
By law, you are protected from paying any fees for your lawyers' work on your case, with the exception of cases of fraud. Your lawyer will be paid for his or her work by the insurance company if your case succeeds. If you lose your case, and it is determined that the whole of the claim was a fraud or sham, the insurance company is entitled to seek an order that you pay its costs for the claim, and your own lawyer may also choose to ask the court for an order that you pay his or her fees. Your own lawyer should tell you in advance whether it is his or her policy to seek an order for payment of costs in a case of fraud.

Work incident (damages)
If your claim is successful the insurance company will pay most of the legal costs. You will pay the difference between what the insurance company has to pay and the actual costs. As a rule of thumb the difference is about one third. We will pay all the disbursements (e.g. fees for medical reports) and be reimbursed at the end of the case. In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements. The insurance company may however seek to recover its costs from you.

Compensation FAQ 10: What costs will I have to pay?

Work incident (workers compensation)
Generally, nothing. We will pay for all medical reports required to prove your case. We will be reimbursed for those costs by the insurance company.
You are protected, by law, from having to pay any fees for your lawyers' work on your case, with the exception of cases of fraud. Your lawyer will be paid for his or her work by the insurance company if your case succeeds.
If you lose your case, and it is determined that the whole of the claim was a fraud or sham, the insurance company is entitled to seek an order that you pay its costs for the claim, and your own lawyer may also choose to ask the court for an order that you pay his or her fees. Your own lawyer should tell you in advance whether it is his or her policy to seek an order for payment of costs in a case of fraud.

Work incident (damages)
If your claim is successful the insurance company will pay most of the legal costs. You will pay the difference between what the insurance company has to pay and the actual costs. As a rule of thumb the difference is about one third.
We will pay all the disbursements (e.g. fees for medical reports) and be reimbursed at the end of the case.
In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements. The insurance company may however seek to recover its costs from you.

Compensation FAQ 11: Will I have to pay tax on the compensation I receive?

Motor Vehicle Incident
Compensation will be paid in a once and for all lump sum, which will be tax free.

Public Liability (Slip & Fall)
Almost identical to above.

Work Incident
Tax is payable on weekly compensation payments but not on lump sum payments.

Compensation FAQ 12: What will the insurer pay whilst the case is being prepared?

Motor Vehicle Incident
If liability has been admitted, pay your ongoing medical expenses, although insurers often don’t conduct themselves as they should.
Once liability has been admitted, wholly or in part, pay your ongoing reasonable and necessary medical expenses, as incurred. In serious cases, pay for care provided on a commercial basis (e.g. Dial-An-Angel), home and transport modifications etc. Note the insurer does not have to pay your lost wages/income.

Public Liability (Slip & Fall)
The insurer is not obliged to make any payments before the claim is concluded e.g. it won't pay your medical expenses.

Work incident

1. Weekly Payments: If the insurance company does not commence your weekly payments of compensation within 7 days of lodgement of your workers compensation claim form your solicitor can lodge an Application for Interim Payment Direction with the Workers Compensation Commission on your behalf. The Registrar of the Commission will generally order that the insurance company should commence payment of your weekly compensation benefits for a period of not more than 12 weeks unless the Registrar feels that the claim does not have good prospects of success, you have returned to work, your incident was not reported as required or there is insufficient medical evidence available. At the expiration of the 12 week period, you can apply for another interim payment order which will last for another twelve weeks. You can apply for as many interim payment directions as you require until you have come to some sort of agreement with the Insurance Company or the Workers Compensation Commission hears your case.
2. Medical Expenses: If the insurance company does not commence payment of your medical expenses within 21 days of lodgement of your claim form an Application for an Interim Payment Direction can be made by your solicitor, the same as for wages, however, you are restricted to a maximum amount of $7,500.00 being paid per payment direction. If you need more than $7,500.00 paid for your treatment expenses and the insurer does not agree then you will need the assistance of a Solicitor to lodge an Application for Resolution of a Dispute in relation to same and the Workers Compensation Commission will appoint an Arbitrator to hear your case and make a decision concerning the Insurance Company's liability in relation to the expenses.

Compensation FAQ 13: Can I go back to work?

Motor Vehicle Incident
If you can return to work, you should, provided your doctor certifies you to be fit to return to work.
If you were working at the time of the incident or if you had the potential to earn income and your injuries have stopped you from working or from realising your potential you are entitled to claim the loss of income e.g. wages - except for the first 5 days from the date of the incident.
The claim includes loss of income or income earning potential from the date of the incident (except for the initial 5 day period) and for as long as your injuries will continue to affect your ability to work.

Public Liability (Slip & Fall)
If you can return to work, you should, provided your doctor certifies you as fit to return to work. If you were working at the time of the incident or if you had the potential to earn income and your injuries have stopped you from working or from realising your potential you are entitled to claim the loss of income e.g. wages - except for the first 5 days from the date of the incident.
The claim includes loss of income or income earning potential from the date of the incident (except for the 5 day period) and for as long as your injuries will continue to affect your ability to work.

Work Incident
If you can return to work, you should – provided your doctor certifies you as fit to return to work. Your employer and workers compensation insurer should assist you in returning to suitable work.

Compensation FAQ 14: What if I lose?

Motor Vehicle Incident
In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements. The insurance company may however seek to recover its costs from you.

Public Liability (Slip & Fall)
In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements we have paid. The insurance company may however seek to recover its costs against you.

Work incident (workers compensation)
You are protected, by law, from having to pay any fees for your lawyers' work on your case, with the exception of cases of fraud. Your lawyer will be paid for his or her work by the insurance company if your claim succeeds.

Work incident (damages)
In the unlikely event that your case is lost we will not charge any fees or seek reimbursement of disbursements we have paid. The insurance company may however seek to recover its costs against you.

Compensation FAQ 15: What if I am held to be partially to blame for the incident?

Motor Vehicle Incident
If you were partly responsible for the incident the amount of compensation you receive will be reduced by the level of your responsibility(e.g. 50% your fault means a 50% reduction in compensation.)

Public Liability (Slip & Fall)
If you were partly responsible for the incident the amount of compensation you receive will be reduced by the level of your responsibility(e.g. 50% your fault means a 50% reduction in compensation.)

Work incident (workers compensation)
It does not matter.

Work incident (damages)
If you were partly responsible for the incident the amount of compensation you receive will be reduced by the level of your responsibility(e.g. 50% your fault means a 50% reduction in compensation.)

Compensation FAQ 16: Will I have to see any doctors?

Motor Vehicle Incident
The insurer will make appointments for you to be medically assessed by its own medico-legal doctors.
You will need to:
1. Attend all medical appointments arranged for you, and co-operate with doctors who have been asked to assess you, whether they be doctors appointed by us or by the insurer or by the Motor incidents Authority
2. Keep us informed of your medical condition, progress, employment situation, change of address, change of circumstances. There is no need to phone us on a regular basis. Rather you should make a note of all the changes and bring us up to date at our regular meetings or pre-arranged phone conferences.
3. Forward all accounts, receipts, invoices etc in relation to medical expenses, including physiotherapy expenses, to us, in the self addressed, stamped envelopes provided, so that we can apply to the insurer for a refund for any payments you have made and also so we can prepare a schedule of your claim for medical expenses to present to the insurance company and/or to the assessor/Court in due course.
4. Get on with your life, if possible e.g. if you can return to work, you should, provided your doctor certifies you to be fit to return to work.

Public Liability (Slip & Fall)
The insurer will make appointments for you to be medically assessed by its own medico-legal doctors.
You will need to:
1. Attend all medical appointments arranged for you, and co-operate with doctors who have been asked to assess you, whether they be doctors appointed by us or by the insurer or by the Motor incidents Authority
2. Keep us informed of your medical condition, progress, employment situation, change of address, change of circumstances. There is no need to phone us on a regular basis. Rather you should make a note of all the changes and bring us up to date at our regular meetings or pre-arranged phone conferences.
3. Forward all accounts, receipts, invoices etc in relation to medical expenses, including physiotherapy expenses, to us, in the self addressed, stamped envelopes provided, so that we can apply to the insurer for a refund for any payments you have made and also so we can prepare a schedule of your claim for medical expenses to present to the insurance company and/or to the assessor/Court in due course.
4. Get on with your life, if possible e.g. if you can return to work, you should, provided your doctor certifies you to be fit to return to work.

Work Incident
The insurer will make appointments for you to be medically assessed by its own medico-legal doctors.
You will need to:
1. Attend all medical appointments arranged for you, promptly and co-operate with doctors who have been asked to assess you, whether they be doctors appointed by us or by the insurer.
2. Keep us informed of your medical condition, progress, employment situation, change of address, change of circumstances. There is no need to phone on a regular basis. Rather you should make a note of all the changes and bring us up to date at our regular meetings or pre-arranged phone conferences.
3. Get on with your life, if possible e.g. if you can return to work, you should, provided your doctor certifies you as fit to return to work.

Compensation FAQ 17: Is the insurance company likely to follow me around and spy on me?

Motor Vehicle Incident
Maybe, but there is nothing to fear if you act honestly and tell the truth at all times

Public Liability (Slip & Fall)
Maybe, but there is nothing to fear if you act honestly and tell the truth at all times

Work Incident
Maybe, but there is nothing to fear if you act honestly and tell the truth at all times.

Compensation FAQ 18: How often will I need to see you?

Motor Vehicle Incident
From time to time we’ll need to communicate with you to obtain updates in relation to your medical condition, etc.

Public Liability
From time to time we’ll need to communicate with you to obtain updates in relation to your medical condition, etc.

Work incident
From time to time we’ll need to communicate with you to obtain updates in relation to your medical condition, etc.

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If you are in need of legal advice, contact Stacks/Goudkamp today. Stacks/Goudkamp is a Sydney based law firm with Accredited Specialists in Compensation Law and Compensation matters. We are situated in the heart of the Sydney CBD and also have offices in Parramatta, Liverpool, Newcastle and Wollongong. Call us today on 1800 25 1800 or alternatively, fill out the form on the right.

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Do I have a claim?

If you have sustained personal injuries in a Motor Vehicle Incident and can prove that the incident was caused by the driver of a motor vehicle (even if the identity of that vehicle is unknown, for example, hit and run) even if you were partly responsible for the incident yourself, you are entitled to receive compensation or 'damages'... read more

Contact us now 1800 25 1800

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