Just the other day I spoke to a lady on the phone who
did not understand how she could receive only $70,000 in the hand from a
$200,000 settlement.It would have
been easy to make out her lawyer must be crooked and make myself look good but
that is foolish when you don’t know the full story. However I know the firm who act for her and as their standards are considered very good I encouraged her to talk to her lawyers before making a complaint.
I suspected that her personal injury solicitor
had not made it clear how much she had to pay out of her damages for money
already spent on her case.When a
judgment or settlement is given all the money spent past and present is taken
into account.For example you may
have been making $700 per week before your accident but after the accident you
only received $400 a week.The
compensation will be calculated using the larger figure but the money already
received will be deducted from the money you receive.It is the same with medical treatment.Even if Medicare paid for all of it the
cost of the treatment the cost the government expended is included.
This can all add up to big total so after
legal costs you may receive in your hand a lesser figure than you thought you
would.Where your solicitor has
failed is not in honesty but in not making sure you understand how the
compensation is worked out.
I told my caller to try to talk to her
solicitor and not be put off.If the
solicitor failed her then she must talk to the Legal Services Commissioner if
she wants to have the service provided reviewed.
This article is authored by Simon Jasprizza of Wheelie Motivated Enterprises (WME). WME was
founded in 2005 by Simon Jasprizza, the company's Managing Director.
Simon is a T7/8 Paraplegic as a result of an accident in 1997. Simon is
a Chartered Accountant (CA), and has been involved in the accounting
and finance industry since 1992, having worked for an international
accounting firm, as well as high net worth individuals. There are not
many industries or businesses that Simon has not been exposed to
throughout his career.
The day you might be so lucky as to receive a compensation settlement, is the day the government turns its back on you.
You become ‘precluded’ from most government benefits, both financial and non-financial dependant upon your unique circumstances, for up to 96 years (on average 25–30 years).
The following are benefits you can no longer access:-
Also in most cases prior to receiving your lump sum compensation payment there are deductions that need to be taken out, such as:-
1) Medicare Benefits – for services used;
2) Hospital Expenses – up to $1,500/day for acute care;
3) Rehabilitation Costs – up to $850/day for specialized care;
4) Equipment Costs – Wheelchairs, hoists etc;
5) Advance Payments – in some rare cases, insurance companies will provide the claimant with upfront payments;
6) Legal Costs – quite substantial in most cases.
Most clients usually live on credit cards, loans from parents & friends and even bank loans (where the bank allows) and hence all of these liabilities need to be re-paid from settlement funds.
In addition, clients feel obliged to make payments to family members for the ‘pain & suffering’ they endured and also for personal care provided.
A tragic loss of a loved one is never made easier because that person’s death may mean a cash payment. However the fact remains that losing a person who is financially contributing to the welfare of a family can mean that lives tossed about by death also suffer doubly by suffering financial hardship.
Thankfully there seems to be a trend of workers compensation schemes recognizing that loss by providing more adequate compensation to families for workplace deaths.
In the last Budget, the Federal Government committed to increasing Comcare lump sum death benefits from their current level of $224, 494 up to $400 000. The commitment also increases weekly benefits for dependant children from $72.98 to $110 per child.
One of the immediate beneficiaries of the decision is the family of ACT Firefighter, David Balfour who was tragically killed while fighting the Victorian bushfires.
There are plenty of people who slander the victims of personal injury and say that there is lack of “personal responsibility” when the injured seek compensation for the work injury, motor accident, medical negligence or public liability injuries. They call themselves tort reformers. Torts is the branch of law that deals with personal injury claims. I will write another time of the actual law that personal injury compensation is decided on.
The funny thing is that people who call for ‘personal responsibility’ are really saying that if you are injured you must cop it and the person or company responsible and their insurer should get off Scot-free.
One of the frequent collateral casualties of personal injury are the existing family and social relationships. In my personal experience in workers compensation, motor accident claims and public liability I have often seen the victims pain and anguish doubled or trebled when their spouses, children and friends leave or just leave them alone.
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