Multiple accidents before and after 16 December 2004

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This needs to be read in conjunction with the policy on Impairment Benefits.

For the purposes of this policy, "The relevant date" refers to 16 December 2004 as per Section 48(1) of the Transport Accident Act 1986 (The Act).

How is the impairment lump sum calculated for a client injured in two or more accidents (multiple accidents)?

How the impairment lump sum is calculated depends on the following factors:

  • when the accidents occur
  • what impairment determinations have been made on earlier accident claims
  • what impairment lump sum payments have been made on earlier accident claims.

When at least one accident occurred before 16 December 2004 and the subsequent accident(s) occur on or after 16 December 2004

When at least one accident occurred before 16 December 2004 and the subsequent accident(s) occur on or after 16 December 2004, a client's permanent impairment from all accidents will be assessed using the applicable formulas under sections 47 and 48 of the Act and the TAC's Impairment Benefit Table.

The TAC's Impairment Benefit Table

Indexed benefits as of 1 July 2019

Degree of impairmentImpairment benefit

10% or less

0

11%-19%

$6,420 +((D-10) x $1,460)

20%-49%

$21,410 +((D-20) x $2,130)

50%-59%

$86,000 +((D-50) x $2,490)

60%-79%

$111,310 +((D-60) x $2,860)

80%-89%

$171,270 +((D-80) x $5,690)

90%-99%

$234,080 +((D-90) x $11,420)

100%

$359,680

Where "D" is the degree of impairment expressed as a percentage number.

Example 1 - Determination when an impairment lump sum payment was not applicable for the MVA prior to 16 December 2004

Using the Combining Formula in the AMA Guides a client's impairment from two accidents is determined at 20%, this is expressed as D = 20. The client is entitled to receive a lump sum benefit calculated in accordance with the applicable formula found in the TAC's Impairment Benefit Table (as above). As the impairment of 20% falls in the range of 20% - 49%, the applicable formula is $21,410 +((D-20) x $2,130). Therefore the client' s lump sum entitlement would be assessed as follows:

1st accident - 2002

5%

2nd accident - 2011

16%

Combined total

20%

$21,410 + ((20-20) x $2,130) = $21,410 lump sum payable.

Example 2 - Determination when an impairment lump sum payment was received for a MVA prior to 16 December 2004

Using the Combining Formula in the AMA Guides a client's impairment from two accidents is determined at 34%, this is expressed as D = 34. The client is entitled to receive a lump sum benefit calculated in accordance with the applicable formula found in the TAC's Impairment Benefit Table. As the impairment of 34% falls in the range of 20% - 49%, the applicable formula is $21,410 + ((D-20) x $2,130).

The impairment lump sum payment the client received for the earlier accident needs to be taken into account in the calculation. Using the TAC's Impairment Benefit Table the TAC determines what 30% would be notionally worth as at the relevant date, which is $30,000. The $30,000 is then subtracted from the lump sum benefit amount payable on 34%. The balance owing, represents the client's current entitlement.

1st accident - 2002

30%

2nd accident - 2011

5%

Combined total

34%


$21,410 + ((34-20) x $2,130) = $51,230 current lump sum payable less the notional lump sum amount payable on 30% as at the relevant date

Therefore $51,230 - $30,000 = $21,230 lump sum payable.

When all of the accidents occur on or after 16 December 2004

When all of the accidents occur on or after 16/12/2004, a client's permanent impairment from all accidents will be assessed using the applicable formula under section 47 and 48 of the Act and the TAC's Impairment Benefit Table.

However, any impairment lump sum payments previously paid will be subtracted from the client's entitlement.

Example

Using the Combining Formula in the AMA Guides a client's impairment from two accidents is determined at 65%, this is expressed as D = 65. The client is entitled to receive a lump sum benefit calculated in accordance with the applicable formula found in the TAC's Impairment Benefit Table. As the impairment of 65% falls in the range of 60% - 79%, the applicable formula for this range is $111,310 +((D-60) x $2,860) = $125,610.

However, the TAC determined that the client was previously paid an impairment lump sum payment of $45,000 for the first accident. The $45,000 is then subtracted from the lump sum benefit amount payable on 65%.  The balance owing, represents the client's entitlement.

1st accident - 2005

40%

2nd accident - 2006

42%

Combined total

65%


$125,610 + ((65-60) x $2,860) = $125,610 current lump sum payable less the impairment lump sum payments the client had been previously paid

Therefore $125,610 - $45,000 = $80,610 lump sum payable.

Weekly annuity benefits

Are weekly annuity benefits payable on multiple accidents?

No. As of 16 December 2004 weekly annuity benefits are not payable on multiple accidents. However, if a client was already in receipt of annuity benefits from an accident occurring before 16 December 2004 at the time they became involved in a subsequent accident they continue to receive:

  • annuity benefits on their earlier accident claim file for 78 weeks, if the impairment was less than 50%; or
  • until the age of 75 years if the impairment is 50% or more.

These are the historical Impairment amounts applicable for 16 December 2004 (The relevant date). 

These notional amounts are solely used in the formula outlined in Section 48(8) of the Transport Accident Act 1986.  

For current figures refer to the Impairment payments for accidents on or after 16 December 2004 table.    

 

% $ % $ % $
11 $5,500 41 $46,500 71 $100,000
12 $6,500 42 $48,000 72 $102,000
13 $7,500 43 $49,500 73 $104,000
14 $8,500 44 $51,000 74 $106,000
15 $9,500 45 $52,500 75 $108,000
16 $10,500 46 $54,000 76 $110,000
17 $11,500 47 $55,500 77 $112,000
18 $12,500 48 $57,000 78 $114,000
19 $13,500 49 $58,500 79 $116,000
20 $15,000 50 $60,250 80 $120,000
21 $16,500 51 $62,000 81 $124,000
22 $18,000 52 $63,750 82 $128,000
23 $19,500 53 $65,500 83 $132,000
24 $21,000 54 $67,250 84 $136,000
25 $22,500 55 $69,000 85 $140,000
26 $24,000 56 $70,750 86 $144,000
27 $25,500 57 $72,500 87 $148,000
28 $27,000 58 $74,250 88 $152,000
29 $28,500 59 $76,000 89 $156,000
30 $30,000 60 $78,000 90 $164,000
31 $31,500 61 $80,000 91 $172,000
32 $33,000 62 $82,000 92 $180,000
33 $34,500 63 $84,000 93 $188,000
34 $36,000 64 $86,000 94 $196,000
35 $37,500 65 $88,000 95 $204,000
36 $39,000 66 $90,000 96 $212,000
37 $40,500 67 $92,000 97 $220,000
38 $42,000 68 $94,000 98 $228,000
39 $43,500 69 $96,000 99 $236,000
40 $45,000 70 $98,000 100 $252,000