Workers Comp Section 32 Settlement

A section 32 settlement is an agreement to close out your workers compensation case in exchange for a sum of money.

Workers comp section 32 settlement. Essentially section 32 is an agreement between an injured worker and the carrier that is responsible for paying that worker s benefits in which these two parties agree to a lump sum settlement as opposed to ongoing weekly payments. A waiver agreement ends the right of an injured worker to ongoing and future benefits in exchange for a lump sum payment or an annuity. At the board it is preliminarily reviewed and if acceptable on its face a hearing is scheduled.

Most schedule 32 settlements are paid in a lump sum. What can be included in a section 32 waiver agreement. It is a serious decision that you must consider carefully before making the agreement.

A section 32 settlement agreement is first drafted usually by the insurance carrier s defense counsel and signed by all parties. It is then submitted to the workers compensation board with form c 32 1. Settlement is priority because it allows the carrier to end exposure for indemnity and or medical costs.

It ends your right to ongoing and future benefits in exchange for a lump sum payment or an annuity today. Section 32 settlements offer injured workers a one time tax free payment to a worker in exchange for that worker s promise that he or she will no longer pursue their workers compensation claim s. Once a workers compensation claim has been either accepted as work related or found by the board to be compensable the primary goal of the insurance carrier and or employer is to settle the claim.

What is a section 32 settlement agreement. A section 32 waiver agreement is a negotiated settlement between you and the insurer. If agreed upon and approved by the board whatever is settled indemnity and or medical benefits is closed forever.