New South Wales Consolidated Acts

WORKPLACE INJURY MANAGEMENT AND WORKERS COMPENSATION ACT 1998 - SECT 281

281 Liability to be accepted and settlement offer made

(1) The person on whom a claim for lump sum compensation or work injury damages is made must, within the time required by this section, determine the claim by--

(a) accepting liability and making a reasonable offer of settlement to the claimant, or

(b) disputing liability under Division 3 of Part 2 of Chapter 4.

(2) A claim must be so determined--

(a) within 1 month after the degree of permanent impairment first becomes fully ascertainable, as agreed by the parties or as determined by a medical assessor, or

(b) within 2 months after the claimant has provided to the insurer all relevant particulars about the claim,

whichever is the later.

Note : Section 283 makes failure to comply with this section an offence. Section 78 requires notice of a dispute to be given. If an offer of settlement is not made as required by this section, the claim can be referred for assessment as soon as the time for making the offer has expired.

(2A) The determination of a claim cannot be delayed beyond 2 months after the claimant has provided to the insurer all relevant particulars about the claim (that delay being on the basis that the degree of permanent impairment of the injured worker resulting from the injury is not fully ascertainable), unless the insurer has within that 2-month period notified the claimant that the degree of permanent impairment of the injured worker resulting from the injury is not fully ascertainable.

(2B) When the person on whom a claim is made accepts or disputes liability, the person must notify the claimant as to whether or not the person accepts that the degree of permanent impairment of the injured worker resulting from the injury is sufficient for an award of damages.

(3) An offer of settlement is to specify an amount of compensation or damages or a manner of determining an amount of compensation or damages.

(4) If an offer of settlement is made on the basis that the insurer accepts only partial liability for the claim, the offer is to include details sufficient to ascertain the extent to which liability is accepted.

(5) An employer is not required to determine a claim as provided by this section if--

(a) the employer has duly forwarded the claim to an insurer who the employer believes is liable to indemnify the employer in respect of the claim, and

(b) the employer has complied with all reasonable requests of the insurer with respect to the claim.

Note : A claim forwarded to the insurer is taken to have been made on the insurer.

(6) This section does not apply to a claim for work injury damages in respect of the death of a person, except as the Workers Compensation Guidelines may otherwise provide.