Workers' Compensation

Settlements? 

Frequently workers wonder when they will get a settlement or how much of a settlement they will get.  Once a claim is accepted, the only obligation of the insurance company is to provide four specific types of benefits (outlined on the "What does workers' compensation provide" page) to the extent the worker needs them.  There is no obligation ever to "settle" a claim.  If an accepted claim is settled, it is settled because both the worker and the insurancecompany want to enter into a settlement.  But this generally means that the insurance company pays the worker a sum of money to “buy out” some future liability.  The type of settlement done on an accepted claim is called a “Claim Disposition Agreement” (CDA), or “Compromise and Release”, and the worker usually gives up his right to all future benefits except the right to necessary medical treatment for the accepted condition.

If a claim is denied, the insurance company may also be willing to enter a settlement rather than pursue litigation.  The type of settlement entered on a denied claim is called a “Disputed Claim Settlement” (DCS).  It means that the insurance company gives the injured worker a lump sum of money, but the claim remains denied.  Whether or not a settlement is possible, and the amount of the settlement, will depend on the relative strength of the evidence which the claimant has to show that the claim is compensable, and which the insurance company has to show that it is not compensable.

What about pain, suffering, and inconvenience?

Workers’ compensation has no provisions for pain, suffering or inconvenience.  There are also no provisions for stress caused to a worker while he is undergoing the litigation and/or red tape involved with the workers’ compensation claims.  In other words, you do not receive compensation for these losses.

DISCLAIMER

THE INFORMATION ON THIS WEBSITE IS FOR YOUR INFORMATION ONLY.  IT DOES NOT CONTAIN ALL INFORMATION REGARDING RULES AND REGULATIONS ON WORKERS’ COMPENSATION.  FOR MORE INFORMATION, PLEASE CONTACT THE WORKERS’ COMPENSATION DIVISION, OR A QUALIFIED ATTORNEY WHO SPECIALIZES IN WORKERS’ COMPENSATION.