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Dáil Éireann debate -
Thursday, 4 May 1961

Vol. 188 No. 12

Ceisteanna—Questions. Oral Answers. - Workmen's Compensation Acts: Lump Sum Settlements.

4.

asked the Minister for Social Welfare if the records in his Department indicate the extent to which disability benefit is paid to persons who have accepted lump sum settlements under the Workmen's Compensation Acts; and if he will state generally if persons who accept lump sum settlements under the Workmen's Compensation Acts may also qualify for disability benefit.

The position in relation to title to disability benefit in the case of persons who accept lump sum settlements under the Workmen's Compensation Acts is as follows:

(1) Where the incapacity is temporary the number of weeks in which the lump sum will become exhausted is calculated by dividing such sum by the appropriate weekly rate of compensation and,

(2) where there is permanent total incapacity the annuity which the lump sum will purchase is ascertained and expressed as a weekly rate.

Where the weekly rate thus obtained is less than the appropriate weekly rate of disability benefit the difference between the two rates is payable by way of benefit. Where the weekly rate is equal to or greater than the weekly rate of benefit no benefit is payable.

In the case of temporary incapacity, if the number of weeks represented by the lump sum settlement is exhausted while the insured person is still incapacitated by reason of the accident, disability benefit becomes payable again in full. If the insured person recovers from the effects of the accident before the lump sum has been exhausted and becomes incapable of work from some other cause not connected with the accident, disability benefit will be payable in respect of the new incapacity.

It is not possible from the records of my Department to say how many persons who obtained lump sum settlements under the Workmen's Compensation Acts are now in receipt of disability benefit.

Is it convenient for the Minister to say on what basis the annuity provision is calculated?

I did say that, but perhaps the Deputy did not hear me. Where the incapacity is temporary, the number of weeks in which the lump sum will become exhausted is calculated by dividing such sum by the appropriate weekly rate of compensation and where there is permanent total incapacity, the annuity which the lump sum will purchase is ascertained and expressed as a weekly rate.

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