Lump Sum Compensation — NSW WorkCover

Types of Lump Sum Compensation

There are two main types of lump sum compensation in the NSW workers compensation system. Section 66 lump sum compensation is for permanent impairment resulting from your work injury. Section 151 work injury damages (common law) is for pain and suffering, past and future economic loss, and other damages where the employer was negligent.

Section 66 — Permanent Impairment

Section 66 of the Workers Compensation Act 1987 entitles injured workers with permanent impairment to a lump sum payment. The amount depends on your Whole Person Impairment (WPI) percentage and the maximum amounts set by legislation. This claim can be made once your injury has stabilised and a WPI assessment has been conducted. Accepting a section 66 payment does not prevent you from continuing to receive weekly payments or treatment.

Section 151 — Work Injury Damages

Section 151 allows injured workers to bring a common law claim for work injury damages against their employer if the employer was negligent. To access work injury damages, you must have a WPI of greater than 15% (for non-economic loss) or greater than 0% (for economic loss only). Work injury damages claims are typically handled by a personal injury lawyer.

Eligibility Requirements

For section 66, you must have a measurable permanent impairment as assessed by a qualified assessor. For section 151, you must demonstrate employer negligence and meet the WPI threshold. Both claims have limitation periods, so timely action is important.

The Assessment Process

Lump sum claims require a formal Whole Person Impairment assessment. Claims Doctor can arrange referrals to qualified permanent impairment assessors and provide supporting clinical documentation. Read our WPI guide →