If an insurance company offers an injured worker a lump sum payment on a claim for workers’ compensation in Pennsylvania, that worker should think before making a decision. Below are the steps to take before deciding whether to accept an offer of a lump sum payment.
Does the Reasoning Behind the Offer Make Sense?
Most insurers want to settle claims as quickly and inexpensively as possible. A quick, lump sum settlement costs the company less in the long term, and it brings closure to the matter for both sides. For a settlement to be sensible, the injured worker needs a good grasp of their situation and their condition. If the case is in dispute, a settlement may be a good idea because it gives the worker a degree of control over the result.
Calculate the Claim’s Value
To arrive at a reasonable figure, the claim’s value needs a fair assessment. Here, “value” is the amount the insurer will pay out over the claim’s lifetime. Workers should hire a lawyer for help in valuing their workers’ compensation claim.
Consider the Chance of Continued Benefits
A worker can only receive benefits as long as they’re unable to do their job. An insurer can be determined in its efforts to ensure that a worker isn’t milking the system, requiring periodic doctor visits and even hiring private investigators. If an insurer believes a worker can return to work, they will discontinue benefits. Workers who feel ready to return to the job should consider a settlement.
Understand the Meaning of a Settlement
In settling a claim for workers’ compensation in Pennsylvania, weekly payments will stop, being replaced by a lump sum payment. When a settlement is accepted, the worker is barred from receiving further payment for the injury, but their insured medical treatments will be unaffected.
Establishing a Fair Settlement Amount
A reasonable figure is one that is fair to both sides. A lawyer with Website Domain can help a worker arrive at that figure and they can tell the client whether an insurer’s offer is fair and reasonable. The fairness of a figure is determined by the worker’s condition and their prognosis. Depending on such factors, a settlement offer could be up to 80% of the claim’s value.
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