Glossary of Personal Injury Compensation Terms

Navigating the world of personal injury law can be daunting, especially when you’re dealing with the stress of an injury.

This comprehensive glossary aims to demystify the legal jargon you might encounter during a personal injury claim. Whether you’re dealing with a workplace injury, a motor vehicle accident, or medical negligence, understanding these terms will empower you so you can engage more effectively with your lawyer throughout the claims process.

Parties involved

Defendant

The person or entity against whom a legal action is brought in a personal injury case.

Example: A local council becomes the defendant when sued for injuries caused by a poorly maintained footpath.

Plaintiff

The person who brings legal action against another in a personal injury case.

Example: Sarah, who was injured in a workplace accident, becomes the plaintiff when she sues her employer for compensation.

Types of compensation claims

Class Action	A legal proceeding where one or more plaintiffs represent a larger (class) of people with similar claims against the same defendant(s). Example: A group of patients who suffered complications from a defective medical device file a class action lawsuit against the manufacturer, such as the Philips CPAP class action.
Compensation to Relatives Act	Legislation allowing family members to claim compensation when a person dies due to someone else’s negligence. Example: The children of a woman killed in a car accident claim compensation for loss of financial support and nurture.
Economic loss	Financial loss suffered by a claimant that is not connected to any physical injury. Example: A business loses customers due to false information negligently provided by a consultant, leading to a claim for pure economic loss.
Historical abuse claims	Legal actions brought by survivors of past physical, sexual, or emotional abuse, often against institutions or organisations responsible for their care at the time of the abuse. Example: A group of former residents of a children’s home bring claims against the institution for abuse suffered decades ago.
Medical negligence claims	A type of professional negligence by a healthcare provider where treatment falls below the accepted standard of medical practice, resulting in injury or harm to the patient. Example: A surgeon operating on the wrong body part due to a misread chart, resulting in unnecessary surgery and complications for the patient.
Motor vehicle accident claims	Claims arising from injuries sustained in accidents involving motor vehicles, including cars, motorcycles, and trucks. Example: A pedestrian hit by a car while crossing at a designated crosswalk files an MVA claim for their injuries and ongoing medical treatment.
Nervous shock	A psychological injury caused by witnessing a traumatic event or its aftermath. For more, read our guide, ‘How much can I sue for emotional distress?’ Example: After witnessing a severe car accident involving his family, Robbie claimed compensation for nervous shock, which led to diagnosed Post Traumatic Stress Disorder (PTSD).
Pain and suffering	Non-economic damages that compensate for physical and emotional distress caused by an injury. Example: In addition to medical expenses, Diane’s claim included compensation for pain and suffering due to chronic pain and depression following her accident.
Product liability claims	The legal responsibility of manufacturers, distributors, and sellers for injuries caused by defective or dangerous products. Example: A consumer suffers burns from an exploding smartphone battery and files a product liability claim against the manufacturer.
Professional negligence claims	A failure by a professional to perform their responsibilities to the required standard, resulting in harm of loss to their client. Example: An architect’s flawed design leads to structural issues in a building, resulting in costly repairs and a professional negligence claim.
Slip and fall claims	Claim arising from injuries sustained due to slipping, tripping, or falling on someone else’s property due to hazardous conditions. Example: A customer slips on a spilled drink in a restaurant and breaks their hip, leading to a slip and fall claim against the establishment.
Workers’ compensation claims	A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Example: A construction worker receives compensation benefits after falling from scaffolding on a job site.

Legal Concepts

Breach of duty	When someone fails to meet their duty of care, resulting in harm or injury. Example: A doctor prescribes medication without checking the patient’s allergies, causing a severe allergic reaction.
Causation	The link between the breach of duty and the injury suffered. Example: A faulty electrical appliance causes a house fire, resulting in burns to the homeowner.
Common law claim	A claim for damages based on the common law right to sue for negligence, as opposed to statutory benefits. Example: An injured worker pursues a common law claim against their employer for failing to provide a safe workplace, seeking damages beyond the standard workers’ compensation benefits.
Confidentiality	The legal obligation to keep certain information private and not disclose it to unauthorised parties. Example: During settlement negotiations, both parties signed a confidentiality agreement to keep the terms of Peter’s medical negligence settlement private.
Contributory negligence	When the injured person’s own actions partly contributed to their injury. Example: A pedestrian jaywalking is hit by a speeding car. Both parties may be found to be partially at fault.
Duty of care	A legal obligation to take reasonable care to avoid causing harm to others. Example: A teacher has a duty of care to ensure students are supervised during school hours to prevent foreseeable injuries.
Negligence	Failure to exercise reasonable care, resulting in harm or injury to another person. Example: A supermarket fails to clean up a spill promptly, leading to a customer slipping and breaking their hip.
Occupiers’ liability	The legal responsibility of property owners or occupiers to ensure their premises are reasonably safe for visitors. Example: A shopper slips on a wet floor in a supermarket with no warning signs and successfully claims against the store under occupiers’ liability.
Public liability	The legal responsibility of a person or business to the public. Example: A shopping centre is sued for public liability when a loose ceiling tile falls and injures a shopper.
Strict liability	Legal responsibility for damages or injuries even if the responsible party was not at fault or negligent. Example: In some states, like NSW and QLD, dog owners may be strictly liable for injuries caused by their dogs, regardless of whether they were negligent in controlling the animal.
Vicarious liability	When an employer is held responsible for the negligent actions of their employee. Example: A delivery company is held liable for injuries caused by their driver who was texting while driving.

Injury claim thresholds

Non-threshold injury

In personal injury claims, this is typically a less severe injury. Non-threshold claims can be made to workers’ compensation, allowing the injured worker to access statutory benefits (such as medical expenses and weekly payments) without meeting a minimum impairment threshold. These injuries generally do not allow the injured worker to pursue a common law claim for damages. For more, read our ‘Guide for Minor Car Accident Procedures in VIC, QLD and NSW’.

Example: In Victoria, a worker who suffers a back strain resulting in a 4% whole-person impairment can receive WorkCover benefits but cannot pursue a common law claim as it falls below the 5% threshold for physical injuries.

Threshold injury

A threshold injury in Australian personal injury law refers to an injury that meets or exceeds a specified level of impairment. This allows the injured person to potentially pursue a common law claim for damages in addition to statutory benefits. The specific threshold varies by state or territory and the type of injury.

Example: In New South Wales, a worker who suffers a back injury resulting in a 15% whole-person impairment meets the threshold for a work-related injury. This allows them to pursue a common law claim for damages against their employer, in addition to receiving workers’ compensation benefits.

Injury claim assessments

Impairment assessment	A medical evaluation to determine the degree of permanent impairment resulting from an injury. Example: A worker undergoes an impairment assessment which determines they have a 15% whole-person impairment due to a back injury.
Permanent impairment	A lasting alteration of an individual’s health condition, resulting from an injury or illness. Example: After a severe workplace accident, an employee is assessed as having a 30% permanent impairment of their right arm function.
Total Permanent Disability (TPD)	A condition where an individual is deemed permanently unable to work in their usual occupation or any occupation for which they are suited by education, training, or experience due to injury or illness. Example: After a severe spinal injury, a construction worker is assessed as having a Total Permanent Disability, making them eligible for TPD insurance benefits and potentially a personal injury claim.
Whole person impairment (WPI)	A percentage rating representing the total impact of an injury on a person’s overall function. This is used across the states and territories to determine compensation eligibility. Example: An independent medical examiner assesses a claimant’s back injury as resulting in a 22% whole person impairment, making them eligible for lump sum compensation.

Legal costs and fees

Cost Agreement	A written agreement between a lawyer and client outlining the financial terms for legal services. It details the estimated costs, fee structure, payment terms, and disbursements. Not all personal injury law firms cover disbursements in their No Win No Fee agreement, so it’s important to read the details on how they put ‘No Win No Fee’ into practice. Example: Before taking on Maria’s slip and fall case, her lawyer provided a Cost Agreement detailing how fees would be calculated based on the case’s outcome.
Disbursements	Out-of-pocket expenses incurred by a lawyer on behalf of a client during legal proceedings. Example: A law firm pays for medical reports and expert witness fees as disbursements, which are later reimbursed by the client or included in the settlement.
No Win No Fee	A fee arrangement where the lawyer only gets paid if the case is won or settled favourably for the client. Example: Sarah, injured in a car accident, was hesitant to pursue legal action due to costs. Her lawyer offered a No Win No Fee arrangement, allowing her to proceed with her case without upfront legal fees.
Party costs	The legal costs payable by the defendant (other party). If a matter is litigated in Court, it is generally the “losing” party that will have to pay these costs by way of a partial reimbursement of legal costs incurred in a case. These costs are generally less than the actual solicitor/client costs. Example: After winning the personal injury case, the defendant is ordered to pay a portion of the plaintiff’s legal fees.
Solicitor fees	The charges for legal services provided by a solicitor, usually calculated on an hourly basis. Example: The plaintiff’s solicitor fees for handling their workplace injury claim came to $20,000 based on 50 hours of work at $400 per hour.

Legal documents and procedures

Affidavit	A written statement confirmed by oath or affirmation, for use as evidence in court. Example: A witness to a slip and fall accident provides an affidavit detailing what they saw, which is submitted as evidence in the case.
Informal Settlement Conference (ISC)	A meeting between the parties involved in a legal dispute, often conducted face-to-face or virtually, with the aim of reaching a settlement. The purpose of an ISC is to discuss the case, narrow down the points of disagreement, and explore potential resolutions. Different to a mediation, at an ISC you won’t directly communicate with the opposing party. Instead, your legal team will represent you and negotiate on your behalf. The structure is also informal. Example: In a car accident claim, an ISC occurs involving the injured person’s lawyer and the insurance company’s representative discussing the extent of the injuries, the amount of lost wages, and potential settlement figures.
Litigation	The process of taking legal action through the court system to resolve a dispute. Example: After failed negotiations with the insurance company, Amina’s lawyer advised that litigation was necessary to pursue fair compensation for her injuries.
Mediation	A form of alternative dispute resolution where a neutral third party helps the parties negotiate a settlement. Different to an Informal Settlement Conference (ISC), a mediation involves the disputing parties and a neutral third-party mediator. The structure is also more formal. Example: A personal injury claim may be resolved through mediation, avoiding a costly and time-consuming court battle.
Notice of Claim for Damages	A formal notification to a potential defendant about an intent to seek compensation for injuries or losses. Example: Within months of her accident, Theresa’s lawyer sent a Notice of Claim for Damages to the negligent driver’s insurance company, initiating the compensation process.
Schedule of Damages	A document that lists and quantifies all the losses and expenses claimed by the plaintiff in a personal injury case. Example: David’s Schedule of Damages included medical bills, lost wages, and estimated future care costs resulting from his spinal injuries.
Statement of Claim	A formal document filed with the court that outlines the plaintiff’s case against the defendant. Example: In his Statement of Claim, Tom’s lawyer detailed how a defective product caused his injuries and specified the compensation he was seeking from the manufacturer.
Statute of limitations	The time limit within which a legal action must be initiated. Example: In Victoria, a person generally has three years from the date of injury to file a personal injury claim.
Subpoena	A legal document that orders a person to appear in court or produce documents related to an individual or oragnisation involved in an open claim. Example: In Michael’s workplace injury case, his lawyer subpoened his employer’s safety records to prove negligence in maintaining equipment.

Settlement, compensation and damages

Damages	Monetary compensation awarded to a plaintiff for injuries or losses suffered. Example: A court awards $500,000 to a car accident victim to cover medical expenses and lost wages.
General damages	General damages refer to compensation for non-economic losses in a personal injury claim. These damages are subjective and not easily quantifiable, covering aspects such as pain and suffering, loss of enjoyment of life, and loss of amenities. Example: Anna suffered a severe back injury in a car accident. As a result, she experiences chronic pain and can no longer participate in her favourite hobby of rock climbing. The compensation she receives for her ongoing pain and the loss of ability to enjoy her hobby would be considered general damages.
Loss of amenity	Compensation for the loss of ability to enjoy life’s pleasures due to an injury. Example: A professional athlete who can no longer play sports due to an injury (from an accident they were not responsible for) claims loss of amenity as part of their damages.
Lump sum compensation	A one-time payment made to settle a claim, covering all past and future losses and expenses related to the injury. Example: Instead of ongoing weekly payments, an injured worker accepts a lump sum compensation of $600,000 to cover their future loss of earnings and medical expenses.
Special damages	Special damages, also known as economic loss, refer to the quantifiable financial losses incurred as a result of an injury. These damages are objectively calculated based on actual expenses and projected future costs directly related to the injury. Example: Following a workplace accident, Ahmed incurred medical expenses for hospital treatment, physiotherapy, and medication. He also lost wages due to being unable to work for three months. The compensation he receives for these specific, quantifiable losses would be classified as special damages.
Structured settlement	A settlement where compensation is paid out in installments over time, rather than as a single lump sum. Example: A catastrophically injured plaintiff agrees to a structured settlement providing monthly payments for life, ensuring long-term financial security.
Tax-free component	Most personal injury settlements are tax-exempt. The tax-free component refers to the portion of a compensation payment that is not subject to income tax, typically including amounts for pain and suffering and medical expenses. Example: Of the $200,000 settlement, $150,000 was designated as a tax-free component, covering the claimant’s pain and suffering and future medical needs.

Frequently Asked Questions

More information about injury claims

What is the time limit for making a personal injury claim in Australia?

Generally, you have three years from the date of injury to file a claim. However, this can vary depending on the type of claim and your state or territory. It’s best to seek legal advice as soon as possible.

Do I need a lawyer to make a personal injury claim?

While not mandatory, having a lawyer can significantly improve your chances of a successful claim and fair compensation.

How long does a personal injury claim take to settle in Australia?

The duration varies, but most claims take between 12 to 18 months to settle. Complex cases may take longer, while straightforward claims might resolve more quickly.

What is the difference between general damages and special damages in personal injury claims?

General damages compensate for non-economic losses like pain and suffering while special damages cover quantifiable economic losses such as medical expenses and lost wages.

Can I make a personal injury claim for psychological trauma?

Yes – you can claim for psychological injuries, such as PTSD or depression, resulting from an accident or traumatic event. These claims often require expert medical evidence.

What types of injuries qualify for a personal injury claim?

Personal injury claims encompass a wide range of incidents, including car accidents, medical negligence, workplace injuries, slips and falls, and more. If you’ve suffered an injury due to someone else’s negligence, you may be entitled to compensation.

How much compensation can I expect?

Determining the exact compensation amount depends on various factors, including the severity of your injuries, medical expenses, lost wages, and pain and suffering. A lawyer can provide a more accurate estimate after assessing your case.

We have a variety of guides that you might find helpful:

Need legal help?

Understanding your options after a personal injury can be overwhelming. That’s why we offer clear, straightforward legal advice. Our No Win No Fee model means you don’t pay unless we win your case.

We handle a wide range of personal injury claims, from car accidents to medical negligence. Our experienced team will guide you through the process, from gathering evidence to negotiating a settlement.

Don’t let legal jargon confuse you. Contact us for a free initial consultation to discuss your case and learn how we can help.

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