0% Permanent impairment and review rights

Q-COMP often receives applications for review from injured worker's who receive a notice of assessment with a zero degree of permanent impairment.  The worker may be aggrieved by an insurer's "decision" to cease their entitlement to compensation.

This summary is provided as a guide to Q-COMP's position in relation to these applications for review.

Notice of Assessment and degree of permanent impairment

Under section 179 of the Act, an assessment of permanent impairment requires three determinations-

• is there an impairment
• is the impairment a permanent impairment
• and, if so, the degree of permanent impairment

If the assessment under section 179 results in no or nil or zero degree of permanent impairment, then this is an assessment that the worker has not sustained a degree of permanent impairment from the injury.

The worker's entitlement to lump sum compensation is linked to the degree of permanent impairment from the assessment. If, under section 187, the worker has an entitlement to lump sum compensation, insurers must include an offer of lump sum compensation in the notice of assessment.

The entitlement to lump sum compensation depends on an assessment that the worker has sustained a degree of permanent impairment, see section 178(2).

Under section 187, the offer is one that must be capable of acceptance by the worker so as to give rise to an obligation by the insurer to pay the worker the amount of lump sum compensation.  Where the worker has not sustained permanent impairment, the worker is not entitled to a payment of lump sum compensation. The notice of assessment will not include an offer of lump sum compensation as there is no entitlement and there is nothing to offer.

Section 190(2) will not apply to a worker who has not sustained permanent impairment from the injury as there has been no offer made to the worker.  The time limit of 20 business days does not apply.  There is no offer capable of being accepted or rejected by the worker.

For a worker who has been assessed as not having sustained permanent impairment from the injury, the worker may or may not have an ongoing entitlement to payment of compensation or for other expenses.

The management of the workers' compensation claim continues in the normal manner. If the claim is one for cessation or termination of the worker's entitlements, an insurer should issue written reasons for decision terminating the worker's entitlement pursuant to sections 144A and 144B.

If an insurer ceases to pay a worker's entitlements after a notice of assessment with a zero degree of permanent impairment has been issued, then Q-COMP will treat this as an implied termination of the worker's entitlements.

At review, whilst Q-COMP cannot review the issuing of the notice of assessment or the percentage of permanent impairment, we can review the implied decision to terminate entitlements.