Glossary
Permanent impairment
Impairment from an injury that has stabilised and is unlikely to change, assessed to determine lump-sum and other entitlements.
Also called: PI
Definition
Permanent impairment is loss of function from an injury that has reached maximum medical improvement and is not expected to change significantly. In the NSW workers compensation and CTP schemes it is assessed by an accredited assessor against SIRA's guidelines, and the result is usually expressed as a whole person impairment percentage. That percentage can determine eligibility for lump-sum compensation and, above certain thresholds, other entitlements. Permanent impairment is assessed only once the injury is stable, which is generally well into a claim rather than at the start.
In practice
Permanent impairment is assessed near the settled stage of a claim by an accredited assessor, separate from any return-to-work activity. Nexus's coordination role runs earlier and in parallel, supporting recovery at work and suitable duties, and does not involve assessing or rating impairment. Where a claim moves towards a permanent-impairment assessment, that referral and the medical opinion sit with the insurer and the treating and assessing practitioners.