Injured workers often need to decide whether or not to accept a lump sum settlement offer their workers’ compensation claim. Typically, when an injured worker is either at or near maximum medical improvement, the employer’s insurance carrier will contact them to discuss claim settlement.
You should consider many important factors while evaluating a settlement offer.
MMI (Maximum Medical Improvement)
MMI or Maximum medical improvement, refers to the time where a person has undergone all reasonable and necessary medical treatment to improve their condition.
Once the person reaches MMI, their doctor determines whether they can return to work with no restrictions, modified work with restrictions, or permanently and totally disabled from all work.
Lump sum settlement
A lump sum settlement refers to a voluntary agreement between an injured worker and the employer’s workers’ compensation insurance company to close out the weekly disability payment of the claim. Both parties must both agree on a one- time payment to the injured worker in exchange for the injured workers signing off and foregoing any future weekly disability payments. However, none of the parties can force the other into such agreement.
Don’t forget to check the following while valuating a Settlement Offer.
- Check whether the injured worker has reached MMI.An injured worker should not agree to settle before reaching MMI.
- The amount offered by the employer’s insurance carrier should reasonably reflect the future weekly compensation that the claimant would otherwise receive if they continue to receive weekly benefits, after a net present value reduction.
- Check if the settlement offer includes a reasonable allocation to Section 36 permanent loss of function benefits?
- If the person is a candidate for permanent and total disability benefits, check for any health issues that may affect the person’s life expectancy and limit the amount of future weekly benefits
- Check how your workers’ compensation claim will affect your other disability benefits, such as Social Security Disability
The ones mentioned above are only a few of the several factors that need to be considered while evaluating a workers’ compensation settlement offer. Usually, to be able to receive a reasonable settlement offer, the injured worker may have claims for enhanced benefits that need to be filed. This can help to increase the amount of possible future benefit payments.
In addition, it is a good idea to consult an experienced lawyer’s help in negotiating a settlement of your claim since your employer and the insurance carrier will certainly bring their own legal team.
If you wish to consult an experienced auto or motorcycle accident or workplace injury lawyer in Beverly Hills or Sherman Oaks, CA, schedule a consultation with the law office of Eduard Braun in California, at 877-533-4LAW.
