Motor Accident Compensation

Motor Vehicle Accident Claims, NT: Part 3 – Loss of Earning Capacity Payments

Part 3 in a series of blogs that specifically address Motor Vehicle Accident Claims in the Northern Territory.

Part 3 in a series of blogs that specifically address Motor Vehicle Accident Claims in the Northern Territory.

Section 13 of the Motor Accidents Compensation (MAC) Act allows a claim to be made for income support by a person whose capacity to earn income is reduced as a result of an injury suffered as a result of a motor vehicle accident. There are a number of requirements for making a claim under s 13 of the MAC Act, just as there are a number of different insurance claims that may be made following from a motor vehicle accident. It is important to enlist the services of a lawyer in order make sure that you are making the correct claim and receiving the appropriate compensation.

Do I qualify for a section 13 claim?

In order to qualify for section 13 payments under the MAC Act you must have first had an earning capacity prior to the motor vehicle accident, you must be over 15 years of age, and under the Commonwealth Pension Age. Your previous earning capacity can be established by providing tax returns or pay slips.

You will need to establish, via medical assessment, that you have a diminished capacity to work. Your doctor will need to make an assessment as to your full potential workload. For example, you may be assessed as having the overall capacity to work for 5 hours per week.

It is imperative you have an open dialogue with your treating practitioners regarding your symptoms and true level of interference in both work and home duties. Assistance from a lawyer will allow you to obtain appropriate medical evidence to argue against a deeming decision if necessary.

Payments:

The maximum amount payable per week is 85% of the average weekly earnings for all employees’ total employment earnings in the Northern Territory based on what are the best statistics available before 1 January or 1 July  each year.

As at 1 January 2015 the rate was $848.50.

The rate cannot be negotiated and does not take into account an individual’s work circumstances.

Compensation is not payable for the day of the accident, where the insurer deems someone capable of working full time (regardless of the work and even though in reality they may not be working)or when someone recommences earning more than the applicable 85% rate.

There is no deduction of income tax from the amount paid.

Entitlements may continue until the person reaches pension age.

Ensuring that you have a properly constructed claim and have applied under the proper sections of the legislation is integral to establishing a successful claim with the TIO, and in order to receive the medical treatment and necessary services to aid in your recovery.  Enlisting the services of a competent lawyer with experience in Northern Territory motor vehicle accident claims could make the difference between a successful and unsuccessful claim.

Part 1 – The Basics

Part 2 – Permanent Impairment Claims

Part 4 – Disputing a Decision

Contact us for a free initial interview about your claim.