The Issue – TAC failing to pay Loss of Earning Capacity Benefits
The TAC have a number of rules for a person to qualify for loss of earnings( the income benefit paid in the first 18 months). A range of claimants miss out on these benefits.
At 18 months post-accident the benefits change to Loss of Earning Capacity Benefits. The claimants whom missed out in the first 18 months may qualify for the loss of earning capacity benefits. To receive the benefit you must have a partial or total incapacity for work.
The issue that arises is that TAC may not inform the claimant, may deny it or may get the rate wrong.
Who does this apply to?
Unlicensed drivers and riders
Drivers and riders of unregistered vehicles
Students (Commonly students in years 11 and 12 and university)
Claimants unemployed at the time of the accident
Claimants not in the workforce for other reasons such as temporary illness or a gap year
For those employed at the time of the accident (unlicenced and unregistered claimants) the benefit is based on 80% of net earnings (with no tax payable).
For those not employed there are a range of approaches to determine a rate. This could include the following:
1. Expected earnings such as those that could be earned as a graduate
2. Past earnings history
3. If there is no reference point a non-earners rate applies
The action required
TAC may not advise of this entitlement. You will need to request the TAC to assess the entitlement. There is no specific form. The TAC do not have any formal or structured process. We discuss this entitlement with all our clients and assist in making the application if the entitlement is identified.