work comp questions

Can a Claim be Settled in a Lump Sum?

Receiving a lump sum settlement for your work related injury

Can a claim be lump sum settled?

YES. However, compensation is normally paid on a weekly basis. Whenever any weekly payment has been continued for not less than six weeks, the liability for weekly payment may be redeemed by the payment of a lump sum fixed by the Commission. Payment by lump sum is possible if it is not contrary to the employee's best interest and it is either (1) requested by the employee, or (2) requested by the employer to prevent undue hardship. The burden of showing facts sufficient to justify a lump sum settlement is on the claimant. Ashley v. Ware Shoals Mfg. Co. 210 S.C. 273, 42 S.E.2d 390 (S.C. 1947). Undoubtedly it was intended that periodic payments should be the rule and lump sum settlements the exception.

The lump sum may not be less than ninety (90%) percent of the commuted value of the future installments. The future installments must be commuted so as not to exceed six percent (6%) nor be less than two percent (2%). S.C. Code Ann. §42-9-301. The Commission may not order a lump sum payment without notice to the employer and carrier, who are entitled to be heard on the issue. Todd v. Holt & Vereen Constr. Co., 281 S.E.2d 215 (S.C. 1981).

Regulations 67-1605 (lump sum payments) and R. 67-1606 (lump sum payments in claims involving fatalities) provide a specific procedure for lump sum payments. R.67-1605 states that the employer's representative shall pay, in lump sum, a settlement or award which is less than one hundred weeks. When a settlement or award is more than one hundred weeks, the Hearing Commissioner may order a lump sum payment or the claimant may request a lump sum payment by filing a WCC Form 24, Application for Lump Sum Payment.