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Lump sum compensation

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The TAC can pay lump sum compensation to eligible clients.

There are two types of payments available:

  • The impairment benefit, which can be paid regardless of who caused the accident
  • Common law damages, which can be paid if someone else was at fault.

Impairment benefit

  • An "impairment" is a permanent physical or psychological condition caused by your accident injuries
  • If you are likely to have an impairment, the TAC will arrange to have your injuries assessed by an independent medical examiner to see what permanent effect these injuries have on your body movement or organ function.

A lump-sum payment can be paid by the TAC for this loss if your impairment rates at a certain level.

The TAC will contact you if your injuries indicate you are likely to be eligible for impairment benefits.

Alternatively, if you think you may be eligible for impairment benefits, you may contact the TAC on 1300 654 329 to discuss this further.

For more information about the impairment process, please refer to the impairment benefits section.

Common law damages

If you are seriously injured in a transport accident and someone else was at fault, you may be able to receive a common law damages payment. The payment is for pain and suffering and loss of enjoyment of life. It may also be for financial loss resulting from the accident.

To be eligible for common law damages:

  1. You must have someone to sue who was at fault and caused you to be injured
  2. Your injuries must reach a certain impairment rating or you must have suffered a 'serious injury' (either physical or mental)

For more information about common law benefits, please refer to the common law damages section.

The Transport Accident Act Protocols

The TAC, Law Institute of Victoria (LIV) and Australian Lawyers Alliance (ALA) have developed an agreement for working together to make the legal process faster, simpler and more cost effective for TAC clients. This agreement is known as the ‘Transport Accident Act Protocols’ (the Protocols).

The Protocols are four documents that provide guidelines and processes to help in the delivery of lump sum compensation and in the resolution of disputes regarding TAC decisions.

Benefits of the Protocols

For clients represented by lawyers who participate in the Protocols, there are a number of benefits, including:

  • A client centred approach
  • A simplified process
  • Reduced timeframes
  • Reduced costs

For more information about the impairment process, please refer to the TAC Protocols section.