Multiple accidents before and after 16 December 2004

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 2022

Degree of impairment	Impairment benefit
10% or less	0
11%-19%	$6,800 +((D-10) x $1,550)
20%-49%	$22,680 +((D-20) x $2,260)
50%-59%	$91,110 +((D-50) x $2,640)
60%-79%	$117,910 +((D-60) x $3,040)
80%-89%	$181,430 +((D-80) x $6,020)
90%-99%	$247,970 +((D-90) x $12,100)
100%	$381,030

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 $22,680 +((D-20) x $2,260). Therefore the client' s lump sum entitlement would be assessed as follows:

1st accident - 2002	5%
2nd accident - 2011	16%
Combined total	20%
$22,680 + ((20-20) x $2,600) = $22,680 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 $22,680 + ((D-20) x $2,260).

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%
$22,680 + ((34-20) x $2,260) = $54,320 current lump sum payable less the notional lump sum amount payable on 30% as at the relevant date Therefore $54,320 - $30,000 = $24,320 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 $117,910 +((D-60) x $3,040) = $133,110.

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%
$117,910 + ((65-60) x $3,040) = $133,110 current lump sum payable less the impairment lump sum payments the client had been previously paid Therefore $133,110 - $45,000 = $88,110 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.