EXPLANATORY STATEMENT
Seafarers Rehabilitation and Compensation Act 1992
Issued by the Seafarers Safety, Rehabilitation and Compensation Authority
Notice of Legislative Instrument
Approved Guide: Guide to the Assessment of the Degree
of Permanent Impairment
The purpose of the instrument to which this Explanatory Statement relates is to bring into operation the second edition of the Guide setting out the criteria by which the degree of permanent impairment and non-economic loss suffered by an injured employee shall be assessed for the purposes of the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act).
Section 39 of the Seafarers Act provides that where an injury to an employee results in a permanent impairment, the employer is liable to pay compensation to the employee in respect of that injury and the degree of permanent impairment shall be a percentage determined under the provisions of the approved Guide.
Section 42 provides that the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) may prepare a written document, to be called the “Guide to the Assessment of the Degree of Permanent Impairment”. In accordance with subsection 42(1) of the Seafarers Act, the instrument sets out the second edition of the Guide, commencing on 1 March 2006.
The instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
In preparing the Guide, the Seacare Authority has, as required under subsection 42(6) of the Seafarers Act, had regard to medical opinion concerning the nature and effect (including possible effect) of the injury and the extent (if any) to which impairment resulting from the injury, or non-economic loss resulting from the injury or impairment, may reasonably be capable of being reduced or removed.
The first edition of the Guide was issued in 1993. It was based on the 2nd edition of the American Medical Association’s Guides to the Evaluation of Permanent Impairment, and the first edition of Comcare’s Guide to the Assessment of the Degree of Permanent Impairment (the Comcare Guide). The content of the first edition of the Seacare Guide has fallen behind developments in medical assessment of permanent impairment and has, by implication of judicial criticism of the first edition of the Comcare Guide, also been subject to criticism.
The second edition is based on the current edition of the American Medical Association’s Guides to the Evaluation of Permanent Impairment, namely the 5th edition.
The second edition of the Guide is substantially more comprehensive than the first edition and will provide an accurate, clear and objective method for measuring all impairments likely to result from work related conditions. It provides calibrated impairment ratings across the various organ systems, more extensive and comprehensive tables with specific measurements of impairment, and detailed instructions on how ratings may be applied or combined. New impairment tables have also been added for specific conditions and in many tables the maximum levels of impairment have been increased.
While non-economic loss ratings remain the same, there is more information on symptoms to assist in providing a more consistent and equitable way of rating non-economic loss.
Permanent impairment ratings determined under the first edition will be preserved unless that assessment would not have been made but for a false statement or misrepresentation.
The first edition chapter on psychiatric disorders has been preserved in the second edition. Seacare, through Comcare, will continue to closely monitor developments in psychiatric impairment rating scales and the operation of the new edition generally.
On 1 September 2005, Comcare prepared the second edition of the Comcare Guide under subsection 28(1) of the Safety, Rehabilitation and Compensation Act 1988. In developing the second edition of the Comcare Guide, Comcare undertook extensive consultation with relevant stakeholders including medical and legal practitioners, and employee representatives. As the Seacare Authority includes employer and employee representatives (the Seacare stakeholders), no further consultation was undertaken.
Overview
The Seafarers Rehabilitation and Compensation Act 1992 was enacted by the Parliament of Australia to address the need for a comprehensive system to support seafarers who suffer work-related injuries or illnesses. This legislation aims to ensure that injured seafarers receive appropriate rehabilitation and compensation. One of the key objectives of the Act is to provide a structured approach for assessing the degree of permanent impairment and determining compensation for injured employees. To this end, the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) has developed the "Guide to the Assessment of the Degree of Permanent Impairment" to ensure that assessments are conducted in an accurate, clear, and objective manner. The second edition of this Guide, which came into effect on 1 March 2006, was developed to reflect current medical standards and practices, and it provides more comprehensive criteria for assessing impairments, including updated impairment tables and more detailed instructions for applying ratings. This updated guide aims to enhance the fairness and consistency of the compensation process for injured seafarers.
Scope and Application
The Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) applies to employers and employees within the maritime industry, specifically those who are injured in the course of their employment. The Act mandates that employers are liable to compensate employees who suffer permanent impairments resulting from work-related injuries. The compensation amount is determined based on the degree of permanent impairment and non-economic loss, as assessed according to the approved Guide to the Assessment of the Degree of Permanent Impairment. This guide, prepared by the Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority), outlines the criteria for evaluating the extent of permanent impairment and non-economic loss. The Act extends its jurisdiction nationally, encompassing all seafarers employed in Australia, regardless of the state or territory in which they are employed. The Act's application is not restricted by geographic boundaries, and its provisions are applicable across the Commonwealth. The Seacare Authority, in preparing the Guide, has considered medical opinions and recent advancements in the medical assessment of permanent impairments. The second edition of the Guide, which supersedes the first edition, is based on the latest American Medical Association’s Guides to the Evaluation of Permanent Impairment and aims to provide a more accurate and comprehensive method for assessing impairments.
Key Provisions
The Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act) has been updated through the introduction of the second edition of the Guide to the Assessment of the Degree of Permanent Impairment. Section 39 of the Seafarers Act mandates that employers are responsible for compensating employees for any permanent impairments resulting from work-related injuries. The degree of permanent impairment is determined using the criteria outlined in the approved Guide (Section 42). This updated Guide, effective from 1 March 2006, provides a comprehensive framework for assessing permanent impairments and non-economic loss, ensuring a more accurate and equitable evaluation process.
The Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) has prepared this second edition, taking into account the latest medical opinions and advancements in the assessment of permanent impairments. This new Guide is based on the 5th edition of the American Medical Association’s Guides to the Evaluation of Permanent Impairment, making it more thorough and up-to-date compared to the first edition issued in 1993. The new Guide includes more detailed impairment ratings, expanded tables with specific measurements, and clearer instructions for combining and applying these ratings. It also introduces new impairment tables for specific conditions and increases the maximum levels of impairment in many tables. Although non-economic loss ratings remain unchanged, the Guide now includes more information on symptoms to aid in consistent and equitable ratings.
The Seacare Authority, as required by Section 42(6) of the Seafarers Act, has considered medical opinions regarding the nature and effect of injuries, as well as the potential for reducing or eliminating impairment or non-economic loss. This new edition aims to provide a more precise and objective method for assessing all impairments likely to result from work-related conditions. Employers, employees, and the Seacare Authority are all subject to the obligations set forth in the new Guide, which includes maintaining the integrity of impairment assessments and ensuring that compensation is accurately calculated based on the updated criteria.
Failure to comply with the provisions of the Seafarers Act and the new Guide may result in legal consequences. Employers who do not adhere to the compensation requirements for permanent impairments may face penalties, including financial liabilities for unpaid compensation. The Act does not specify maximum penalties for non-compliance in the provided text, but it is understood that breaches of the Act could result in civil or criminal proceedings, depending on the severity and intent of the breach. The Seacare Authority is responsible for enforcing the provisions of the Act and ensuring that all parties comply with the new assessment criteria to maintain fair and consistent application of the law.