Let’s talk about Non-Economic Loss Awards! Commonly referred to as the “NEL”, a Non-Economic Loss Award is paid to an injured worker when their injury or illness results in a permanent impairment. This can be for a physical injury, or a mental stress injury.
The NEL award represents the impact a permanent injury has on an injured worker’s quality of life, even though the injury may not directly impact their ability to work. It is similar to a “pain and suffering” award.
The amount of compensation varies, because the amount that is paid depends on the severity of the condition, and it is calculated based on specific guidelines. The NEL award is assessed by a WSIB NEL clinical specialist, who reviews the medical reports on file at the time that it is determined the injured worker has reached “maximum medical recovery”. Once calculated, the WSIB releases a decision in writing, which provides an explanation of the rating. The rating is assessed as a percentage of “whole person impairment”, and with it comes a lump sum payment.
The NEL award can be reassessed if the injured worker’s impairment deteriorates in the future.
If you have received a NEL award and feel that it does not accurately represent your impairment, you have the right to appeal the NEL decision. The time limit to provide notice to the WSIB of your intent to object to the decision is 6 months from the date the decision was issued.
When it comes to psychological NEL awards, there is a subjective element to the assessment of the impairment. Recently, we successfully appealed our client’s NEL award for her psychological impairment. She was a police officer who had sustained a serious injury to her low back while at work, but was also diagnosed with PTSD and depression following her accident. While the WSIB had determined her psychological impairment warranted only a Class 3 Moderate impairment of 25%, the medical evidence and our client’s testimony supported an impairment rating of 50%, which represents a Class 4 Marked Impairment. This was because her PTSD significantly affected her life. You can read the decision here.
As a layperson, it is difficult to assess the accuracy of a NEL award, so it is always a good idea to get legal advice before deciding to challenge the decision.