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What Is Permanent Impairment Compensation?

If a workplace injury results in permanent impairment, an injured emergency services volunteer may be entitled to a lump sum payment.

Permanent impairment compensation is intended to compensate a person for the lasting effects of an injury, even where they have returned to work.

Who Can Claim?

NSW Emergency service volunteers, including NSW Rural Fire Service volunteers, may be entitled to permanent impairment compensation where a compensable injury results in permanent impairment assessed under the applicable statutory framework.

Whole Person Impairment (WPI)

Permanent impairment is measured using a system known as Whole Person Impairment (WPI).

SIRA accredited Medical specialists assess the extent of permanent loss of bodily or psychological function and assign a percentage rating.

The higher the impairment assessment, the greater the potential lump sum entitlement.

Exempt workers, unlike other workers, are also not limited to making only one claim for lump sum compensation.

Physical Injury Threshold

For physical injuries, lump sum compensation is generally available where the injury results in at least 1% Whole Person Impairment (WPI).

Examples may include:

• Spinal injuries
• Shoulder injuries
• Knee injuries
• Hearing loss
• Respiratory conditions
• Chronic pain conditions

Even relatively modest permanent impairment may give rise to an entitlement.

Psychological Injury Threshold

For primary psychological injuries, the threshold is significantly higher.

Compensation is generally available only where the injury results in at least 15% Whole Person Impairment (WPI).

Why the Assessment Matters

Permanent impairment assessments can have a substantial impact on:

• Lump sum compensation entitlements
• Future legal rights
• Potential common law claims where available
• Overall claim value

Obtaining an accurate assessment is therefore critical.

Common Issues in Permanent Impairment Claims

Disputes frequently arise regarding:

• Whether the injury has stabilised
• Whether multiple injuries can be combined
• The assessment methodology used
• Competing medical opinions

These issues often require independent specialist assessment and legal advice.

Timing Is Important

A permanent impairment claim should generally not be made until the injury has reached maximum medical improvement.

Claiming too early may result in the impairment being underestimated.

Obtaining specialist advice can help ensure that assessments are conducted at the appropriate time and by suitably qualified practitioners.

Why Legal Advice Matters

Permanent impairment claims often involve complex medical and legal questions.

Early legal advice can assist with:

• Arranging appropriate assessments
• Determining whether thresholds have been met
• Calculating entitlements
• Responding to insurer disputes

If you are a NSW emergency service volunteer who has suffered a permanent injury, contact Carroll & O’Dea Lawyers to discuss whether you may be entitled to lump sum compensation. You can also use our Personal Injury Claim Check – Carroll & O’Dea Lawyers.

Disclosure and important note: This article is based on our own legal research and thinking. Some of its content has been drafted with the assistance of artificial intelligence. The authors have checked and approved this article, including the AI generated content, for publication.

This article was published on 7 September by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website. (www.codea.com.au). If you or a loved one has been injured, use our Personal injury Claim Check now.