Multiple accidents before 16 December 2004
This needs to be read in conjunction with the Impairment Benefits policy.
This impairment policy relates to clients who have been involved in two or more accidents which occur before 16 December 2004.
A client first becomes entitled to a lump sum benefit when the degree of permanent impairment is stable, and assessed at 11% or more. This can be obtained from:
- a "single" accident, which assessed at 11% or more; or
- "two or more" accidents where the impairment from each accident when combined together assess at 11% or more, (For example 5% when combined with 16% using the Combining Formula in the AMA Guides = 20%)
A client who has received impairment compensation as a result of a "single" accident or "two or more" accidents being assessed at 11% or more may go on to have an additional accident, called a "subsequent" accident. The client may be entitled to further impairment compensation because of the subsequent accident.
What is TAC's policy in relation to clients who have two of more accidents occurring before 16 December 2004?
The TAC will ensure a client involved in two or more accidents will receive an equitable amount of impairment compensation regardless of the order of their accidents.
What is a multiple accident assessment?
A "multiple" accident refers to "two or more" accidents. A multiple accident assessment is where:
- the assessment from the first accident is less than 11%, and
- the assessment from the last accident when combined results in an cumulative total assessment of 11% or more from all accidents involved.
Multiple accident example
1st accident - 2001
2nd accident - 2003
(Example based on 1 July 2020 figures)
What is a subsequent accident assessment?
- A "subsequent" accident refers to a further or additional accident. A subsequent accident assessment is done when a further or additional accident occurs after a "single" or "multiple" accident assessment. There cannot be a subsequent accident assessment without there first having been a "single" or "multiple" accident assessment which resulted in a client having received an impairment benefit previously.
- A subsequent accident assessment does not require the TAC to reduce the impairment rating by 10%. The 10% reduction in the standard impairment lump-sum formula does not apply here. The impairment also does not need to reach the 11% threshold in order for benefits to be paid.
- A subsequent accident assessment is done by accumulating the impairment ratings from all accidents, from first to last. The TAC then deducts from the combined total any impairment ratings that previously were used to pay impairment compensation to a client on earlier accident claims.
Subsequent accident example
|Client has a 3rd accident|
|1st accident- 2001||5%|
|Combined with 2nd accident-2003||16%|
Combined with 3rd accident-2004
20% (% previously paid)
28%-20%* x $115,660 = $10,280.89
(Example based on 1 July 2020 figures)
Is there an upper limit for impairment?
Yes, the impairment guides stipulate the combined total impairment from all injuries cannot exceed 100%. This is regardless of the fact a client may have sustained all their injuries as a result of one or more accidents.
What other guidelines apply?
- The TAC will pay a client in relation to this policy on the last accident claim.
- The TAC will use the impairment rating from two or more accidents to pay the client's annuity or Minors' additional benefits.
- The impairment rating from two or more accidents does not establish the entitlement, or duration of LOEC benefits.
- Eligibility to recover common law damages does not apply when impairment assessments from two or more accidents are aggregated to bring the cumulative combined total to 30% or more. A client may only pursue a common law damages case when their impairment is 30% or more as a result of one transport accident. Refer to the Claims for Common Law Damages policy .
- A client must have transport accident claims lodged and accepted by the TAC for all their accidents, if they are to be considered part of a multiple or subsequent accident assessment.