What happens if you die before settlement of a workers comp claim?

In Australia, if an individual passes away before finalising a workers’ compensation settlement, the distribution of any potential benefits depends on several factors, including the status of the claim, the presence of dependants, and specific state or territory legislation.

What happens if you die before settlement of a workers comp claim?

Status of the Claim:

• Unfinalised Claims: If a workers’ compensation claim is pending and the worker dies due to the work-related injury or illness, eligible dependants may be entitled to death benefits, which can include lump-sum payments, weekly allowances for dependent children, and coverage of funeral expenses. The exact entitlements and their distribution are determined by the relevant state or territory laws.

• Finalised Settlements: If a settlement was agreed upon and legally binding before the worker’s death, the settlement amount typically becomes part of the deceased’s estate and is distributed according to their will or, in the absence of a will, in accordance with intestacy laws.

Presence of Dependants:

Dependants, such as spouses, de facto partners, and children, may have priority in receiving death benefits from workers’ compensation. For instance, in New South Wales, if there are no dependants, the lump-sum death benefit is paid to the worker’s legal personal representative, effectively becoming part of the estate.

State and Territory Variations:

Workers’ compensation schemes differ across Australia. Each jurisdiction has specific provisions regarding death benefits, including the amounts payable and the definitions of dependants. For example, in Queensland, dependants may be entitled to lump-sum payments and weekly benefits, with the amounts and eligibility criteria outlined in the Workers’ Compensation and Rehabilitation Act 2003.

Conclusion:

If a worker dies before a workers’ compensation settlement is finalised, the potential benefits may be directed to eligible dependants or become part of the deceased’s estate, depending on the circumstances and jurisdiction. It’s essential to consult the specific workers’ compensation authority in the relevant state or territory to understand the applicable entitlements and processes.

Seek legal advice

If you need legal advice about this topic, contact a legal practitioner who specialises in workers compensation and wills and estate law.

We are not a law firm and do not offer legal advice. This a general knowledge article only.