Section 87G — Workers Compensation Act 1987 (NSW)

(1) If a worker is legally incapacitated because of the worker’s age or mental capacity, a liability in respect of compensation may be commuted to a lump sum by determination by the Commission made having regard to—
(a) any dispute as to liability to pay compensation under this Act, and
(b) the injury, the age of the worker, the general health of the worker, and the occupation of the worker at the time of the occurrence of the injury, and
(c) the worker’s diminished ability to compete in an open labour market, and
(d) other benefits that the worker may be entitled to from any other source.
(2) The Commission is not to determine a lump sum for the purposes of this section unless satisfied that the termination of liability concerned is in the best interests of the worker.
(3) Payment of the lump sum to which a liability has been commuted under this section removes the liability.
(4) A determination under this section may include a determination as to the payment of a lump sum to remove any liability to make a payment under Division 4 of Part 3 in respect of the injury concerned. Payment of that lump sum removes any liability to which the determination relates.

Related sections

• s 87EAA — Medical expenses compensation not to be commuted for catastrophic injuries
• s 87EA — Preconditions to commutation
• s 87F — Commutation by agreement
• s 87H — Registration of commutation agreements
• s 87I — Payment
• s 87J — Other commutation agreements invalid

Research how courts apply s 87G

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