Introduction to second edition of the Guide

1. Authority

2. Structure of this Guide

3. Application of this Guide

4. Whole Person Impairment (WPI)

5. Entitlements under the Seafarers Act

6. Non-economic loss

7. Compensation Payable

8. Interim and Final Assessments

9. Increase in Degree of Whole Person Impairment

10. Claims for Permanent Impairment

1. Authority

Division 4 of Part II (sections 39 to 42) of the Seafarers Rehabilitation and Compensation Act 1992 (the Seafarers Act) provides for payment of lump sum compensation for permanent impairment and non-economic loss resulting from a work related injury.

The amount of compensation payable (if any) is to be assessed by reference to the degree of permanent impairment or the degree of non-economic loss determined by employers under the provisions of the approved Guide:

"approved Guide" is defined by section 3 of the Seafarers Act as meaning:

Authority for this document rests therefore in subsections 42(1), 42(2) and 42(3) of the Seafarers Act, which provide that:

This document is the new Guide to the Assessment of the Degree of Permanent Impairment. It may be referred to as 'thisGuide' or 'second edition of the Guide'. This Guide is binding on employers, and the Administrative Appeals Tribunal (subsection 29 (4)).

2. Structure of this Guide

This Guidehas three divisions:

DIVISION 1	Division 1 is used to assess the degree of an employee's permanent impairment resulting from an injury;
DIVISION 2	Division 2 is used to assess the degree of an employee's non-economic loss resulting from impairment;
DIVISION 3	Division 3 is used to calculate the total entitlement based on the assessments completed in Divisions 1 and 2.

The Principles of Assessment and Glossary of this Guide contain information relevant to the interpretation and application of Divisions 1 & 2.

3. Application of this Guide

The Guide to the Assessment of the Degree of Permanent Impairmentprepared by the Seafarers Safety, Rehabilitation and Compensation Authority under subsection 42 (1) of the Seafarers Rehabilitation and Compensation Act 1992 and approved by the Minister for Transport and Communications on 17 June 1993 is referred to as the "first edition of the Guide".

Except as provided below, the first edition of the Guide is revoked in relation to determinations made under sections 39, 40 or 41 of the Seafarers Act in respect of claims under those sections received by employers after 28 February 2006. Claims under those sections received on or before 28 February 2006 will be determined under the provisions of the first edition of the Guide.

This Guide will apply on and from 1 March 2006 in relation to determinations made under sections 39, 40 or 41 of the Seafarers Act in respect of claims under those sections, received by employers after 28 February 2006.

Where a request by an employee (as defined in s4 of the Seafarers Act) pursuant to subsection 40 (1) of the Seafarers Act is received by an employer after the revocation date but relates to a claim under section 39 that was received by the employer on or before the revocation date, that request will be determined under the provisions of the first edition of the Guide.

Where a claim for compensation pursuant to subsections 40(4) of the Seafarers Act (in respect of a subsequent increase in the degree of permanent impairment) is received by the employer after the revocation date, that claim will be determined under the provisions of this Guide, notwithstanding that the initial claim for compensation for permanent impairment may have been determined under the provisions of the first edition of the Guide.

However, where the initial claim for compensation for permanent impairment was determined under the provisions of the first edition of the Guide, in determining whether or not there has been any subsequent increase in the degree of permanent impairment, the degree of permanent impairment or the degree of non-economic loss shall not be less than the degree of permanent impairment or degree of non-economic loss determined under the provisions of the first edition of the Guide unless that determination would not have been made but for a false statement or misrepresentation of a person.

In this Guide, "revocation date" means 28 February 2006.

4. Whole Person Impairment (WPI)

Prior to 1993, the Seamen's Compensation Act 1911(the 1911 Act) (repealed with the coming into effect of the Seafarers Act) provided for the payment of lump sum compensation where a seafarer (employee) suffered the loss of, or loss of efficient use of, a part of the body or faculty, as specified in a table of maims. The range of conditions compensated was exclusive and did not reflect the broad range of work-related injuries and diseases.

This Guide, like the first edition, is based on the concept of 'whole person impairment'. Subsection 39(5) of the Seafarers Act provides for the determination of the degree of permanent impairment of the employee, that is, the employee as a whole person. The whole person impairment concept, therefore, provides for compensation for the permanent impairment of any body part, system or function to the extent to which it permanently impairs the employee as a whole person.

Whole person impairment is assessed under Division 1 of this Guide.

5. Entitlements under the Seafarers Act

Where the degree of permanent impairment of the employee determined under subsection 39(5) of the Seafarers Act is less than 10 per cent, paragraph 39(7) of the Act provides that compensation is not payable to the employee under section 39 of that Act.

Subsection 39(8) of the Act excludes the operation of subsection 39(7) in relation to impairment resulting from the loss, or the loss of the use, of a finger or toe, or the loss of the sense of taste or smell.

6. Non-economic loss

Subsection 41(1) of the Seafarers Act provides that where there is liability to pay compensation in respect of a permanent impairment, additional compensation for non-economic loss is payable in accordance with section 41.

Non-economic loss is assessed under Division 2 of this Guide.

7. Compensation Payable

The maximum level of payment is prescribed in the legislation and indexed annually on 1 July in accordance with the Consumer Price Index. Compensation is calculated at the rate applicable at the time of the assessment (see Division 3 for calculation of total entitlement).

8. Interim and Final Assessments

On the written request of the employee under subsection 40 (1) of the Seafarers Act, an interim determination must be made of the degree of permanent impairment suffered and an assessment made of an amount of compensation payable to the employee, where:

• a determination has been made that an employee has suffered a permanent impairment as a result of an injury;
• the degree of that impairment is equal to or more than 10%; and
• a final determination of the degree of permanent impairment has not been made.

When a final determination of the degree of permanent impairment is made, there is payable to the employee, under subsection 40 (3) of the Seafarers Act, an amount equal to the difference, if any, between the final determination and the interim assessment.

9. Increase in Degree of Whole Person Impairment

Where a final assessment of the degree of permanent impairment has been made and the level of whole person permanent impairment subsequently increases by 10% or more, the employee may request, pursuant to subsection 40 (4) of the Seafarers Act, another assessment for compensation for permanent impairment and non-economic loss. Additional compensation is payable for the increased level of impairment only.

See section 3 above (Application of this Guide) as to assessments of the degree of permanent impairment made under the first edition of the Guide.

 

CLAIMS FOR PERMANENT IMPAIRMENT

 

Publication Cover and Acknowledgments

Introduction to the Second Edition of The Guide

List of Tables and Figures

List of references

Principles of Assessment

Glossary

Division 1 Assessment of the Degree of an Employee's Permanent Impairment Resulting from an Injury

Division 2 Guide to the Assessment of Non-Economic Loss

Division 3 Calculation of Total Entitlement

Appendix 1: Combined Values Chart