Commutations Q&A’s

What is a commutation agreement?

It is an agreement between the injured worker, employer and the insurer to finalise the claim with a one off lump sum payment. The agreement must be certified by SIRA and registered with the Workers Compensation Commission.

Once the agreement is registered, the worker will not be entitled to any further payments of weekly or lump sum compensation or medical expenses.

Commutations are very rarely pursued as it is not often that all parties will agree to this type of settlement.

Who is eligible to apply for a commutation?

A commutation is only available in situations where the worker can satisfy the following criteria.

  • have 15% whole person impairment or more and compensation for the impairment has been paid;
  • it has been at least 2 years since weekly compensation was first paid;
  • all return to work and rehabilitation options have been exhausted;
  • weekly compensation has been made on a regular basis for the previous 6 months and there is an ongoing entitlement to weekly compensation;
  • weekly compensation payments have not been reduced or discontinued due to the worker’s non compliance with return to work obligations.