Payments can be made for any injury deemed to have been caused by service and for any injury that emerges after service but can be shown to have been caused by service. There are two main components to the Compensation Scheme for injury, a lump sum and (for more serious injuries) a Guaranteed Income Payment(GIP). GIP cannot be paid whilst the injured person is still in service as it is meant to reflect a loss of earnings potential. The lump sum payment is made to compensate for pain and suffering.
The lump sum is not taxable and is not payable to dependants except where there is a posthumous claim.
The amount of lump sum to be paid is worked out in accordance with a fixed tariff,the amount corresponing to the seriousness of the injury.For example sustaining a hernia which requires operative treatment will earn £1,050, losing a foot will earn £28,750 whilst losing both hearing and sight will earn £285,000.
The tariff for injury is composed of 9 discrete sections-
The Guaranteed Income Payment is tax free and is only available for injuries specified in tariff levels from 1 to 11. Those injuries classed as levels 12-15 will not merit a GIP payment. The GIP is worked out in accordance with the person's current earnings and the severity of the condition. The full 100% of GIP is only ever paid to those most serious injuries (Tariff level 1-4) in Band A where there is no likelihood of the person ever working again.
Band B covers those injuries at levels 5-6 and pays 75% of the full GIP calculation- this should reflect that the person will be able to work but with a significantly reduced earnings capacity.
Band C covers those injuries at levels 7-8 and pays 50% of the full GIP calculation- this should reflect that the person will be able to work but with an earnings capacity reduced by 50%.
Band D covers those with injuries at levels 9-11 and pays 30% of the full GIP calculation- this should reflect that the person will be able to work but will experience a noticeable loss of earnings because of their condition.
The Guaranteed Income Payment will be worked out using the person's salary on the day that service ends and the person's age at the last birthday before service ends.
For those who have already left the service the calculation is based on the salary on the last day of service up-rated by the All Price Retail Price Index to the date of the claim and on the person's age at last birthday at the date of claim.
The GIP is paid monthly and is uprated every April to take into account any rise in inflation.
A person is entitled to just one Guaranteed Income Payment regardless of how many injuries have been sustained. The amount of payment may however be increased in these circumstances (see below).
Payments for more than one injury in one incident.
With regard to lump sum payments the first injury (which is the one that attracts the highest lump sum amount) is paid at 100% whereas the second injury is paid at 30% of the specified amount and the third injury is paid at 15% of the specified amount.
No additional amounts are paid where there are four or more injuries sustained in one incident.
The maximum amount payable for injuries arising from the same incident is £285,000.
With regard to the Guaranteed Income Payment, the following rules apply to multiple injuries arising from a single incident-
Injuries affecting a pair of like parts of the body
There are special rules affecting those injuries which involve certain pairs of like parts where separate claims for compensation are made. The specified pairs are-
With regard to lump sum payments, the first payment will stand. This payment will then be deducted from the total due when the second claim is made. The rules cite the example of someone who is initially compensated for the loss of one eye and then loses the second eye. In these circumstances the second payment would be the lump sum payable for the total loss of sight minus the first payment that was made.
With regard to GIP, any award made for the first body part to be injured will cease to have effect and will be replaced by a GIP calculated on the loss of both parts.
Temporary Awards.
Temporary awards may be made for injuries which are not listed in the tariff but are listed in the Statistical Classification of Diseases and Related Health Problems or in the Diagnostic Manual of Mental Disorder and is "sufficiently serious to warrant an award of injury benefit".
Temporary awards will lead to the Veteran's Agency amending the tariff to include the condition and then to make a permanent award with its associated rights of review, reconsideration and appeal.
If the tariff is not amended to include the injury then the temporary award will cease although the Veteran's Agency will not take action to recover money that has already been paid.
