A commutation is an injured worker’s entitlement to workers compensation benefits paid out as a lump sum of money.
A commutation is only available under the following circumstances:
- the injured worker must have a permanent impairment that is at least a 15 percent whole person impairment
- compensation for permanent impairment and pain and suffering has been paid
- the worker must be entitled to ongoing weekly benefits and must have received weekly benefits regularly and periodically during the previous six months
- it is more than two years since the worker first received compensation for the injury
- all opportunities for injury management and return-to-work have been exhausted
- weekly benefits have not been stopped or reduced as a result of the worker not cooperating with the injury management plan
- the worker has received independent legal advice
- the insurer and worker must agree with the commutation
WorkCover must approve the commutation
- all agreements must be registered with the Workers Compensation Commission.