New South Wales Consolidated Acts

WORKERS COMPENSATION ACT 1987 - SECT 87EA

87EA Preconditions to commutation

(1) A liability in respect of an injury may not be commuted to a lump sum under this Division unless the Authority is satisfied that, and certifies that it is satisfied that:

(a) the injury has resulted in a degree of permanent impairment of the injured worker that is at least 15% (assessed as provided by Part 7 of Chapter 7 of the 1998 Act), and

(b) permanent impairment compensation and pain and suffering compensation to which the injured worker is entitled in respect of the injury has been paid, and

(c) a period of at least 2 years has elapsed since the worker’s first claim for weekly payments of compensation in respect of the injury was made, and

(d) all opportunities for injury management and return to work for the injured worker have been fully exhausted, and

(e) the worker has received weekly payments of compensation in respect of the injury regularly and periodically throughout the preceding 6 months, and

(f) the worker has an existing and continuing entitlement to weekly payments of compensation in respect of the injury (whether the incapacity concerned is partial or total), and

(g) the injured worker has not had weekly payments of compensation discontinued under section 52A or reduced under section 38A.

(2) The Authority may give directions as to the circumstances in which it will be considered that all opportunities for injury management and return to work for an injured worker have or have not been fully exhausted.

(3) For the purposes of determining the degree of permanent impairment of an injured worker, the Authority may refer the matter for assessment under Part 7 of Chapter 7 of the 1998 Act. That Part applies in respect of such an assessment as if the matter referred for assessment were a dispute.

(4) The Authority may delegate to an insurer any of the Authority’s functions under this section in respect of an injury that is an injury for which the insurer is liable to pay compensation.

(5) This section does not apply to the commutation of a liability in respect of compensation under the former Act.