Compensation claims in Queensland can be complex and most injured people are unaware of their rights and obligations when making a claim. Here are some common misconceptions we come across when people are considering making a claim.

1. The majority of compensation payments are made up of actual losses

Queensland personal injury claims are designed to put injured people back in the position they would have been if the accident had not occurred. In line with this philosophy, the largest part of most personal injury claims in Queensland is compensation for economic loss. These losses are made up of any lost earnings you have suffered up until the date of settlement, and any anticipated future loss of earnings.

Queensland personal injury claimants are also compensated for the cost of past and future rehabilitation and medical treatment expenses, as well as any care and support they may need around the house as a result of their injuries.

The only part of a personal injury claim in Queensland which is not calculated on actual losses is a claim for “pain and suffering”, which is referred to as general damages.

2. Future Losses are Discounted

When calculating personal injury damages for future losses in Queensland, discounting factors must be applied. This is based on the expectation that any lump sum compensation received will be invested at a rate of return of 5% per annum. When calculating future weekly losses, set numbers from the Litigation Discount Tables must be used. For example, if someone was losing $100 per week for 10 years, the weekly loss of $100 would need to be multiplied by 413, which is the prescribed number for 10 years of loss. This will equate to a total sum claimed of $31,300 (rather than $52,000 if you simply claimed $100 per week x 52 weeks x 10 years).

3. Most compensation payments are tax free

Personal injury claimants are not usually required to pay tax on their compensation payouts. They do not need to be included in your tax return. However, there may be some tax implications in relation to any interest you may receive from investing a lump sum payment, and this is something that you should discuss with your accountant.

4. Most claims take at least a year to resolve

Because compensation payments in Queensland are designed to compensate injured people for both past and future losses, injuries need to reach maximum medical improvement before damages can be properly calculated. Medical specialists are usually only able to try and predict how someone’s injuries may affect them in the future once the period of initial recovery has passed. It usually takes approximately 10 to 12 months for this to occur. It is only after this assessment has taken place that a personal injury lawyer will be able to advise you on what compensation you may be entitled to.

5. You might be able to claim some of your legal costs from the insurer

If you have a motor vehicle accident claim or public liability claim in Queensland, the insurer will be required to contribute to your legal costs as long as the settlement of your claim reaches a certain threshold. This usually equates to between 40% and 50% of your total legal costs. To get your claim to reach this threshold, it is important to seek advice from an experienced personal injury lawyer.

This article was written by Gail Blaber of Littles Lawyers. If you have any queries regarding the article, please contact via Free Claim Checker or email us.