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Plain English answer
How this assessment usually works
Psychological impairment assessment in NSW is not simply an AMA5 Chapter 14 exercise. The NSW guidelines use a substitute psychiatric impairment approach, and the distinction between primary and secondary psychological injury can decide whether permanent impairment compensation is available at all.
The assessor does not decide legal liability. The assessment is a medical opinion about permanent impairment under the NSW workers compensation guidelines. The legal importance is what the percentage does to Section 66, weekly payments, medical expense time limits, settlement strategy or work injury damages preparation.
Step 1
Accepted injury
Check the accepted injury wording, body system and mechanism before looking at the percentage.
Step 2
Medical method
Check whether the correct NSW guideline method, clinical findings and records were used.
Step 3
Claim effect
Check what the WPI percentage changes before accepting a report or settlement position.
What the assessor usually checks
- whether the claim is accepted as primary psychological injury or secondary symptoms after a physical injury
- whether section 11A or management-action issues affect liability
- psychiatric diagnosis, treatment history and current functional impact
- whether symptoms have stabilised enough for impairment assessment
- whether physical injury impairment and primary psychological impairment are being kept separate
Evidence that may help
A useful WPI report depends on the material the assessor receives. These records often matter for psychological injury:
- GP notes, psychologist or psychiatrist reports and medication history
- workplace chronology, incident material and insurer liability notices
- certificates of capacity dealing with attendance, concentration, interaction and reliability
- rehabilitation provider notes and failed return-to-work attempts
- records explaining whether symptoms arise directly from workplace events or secondarily from physical injury consequences
Common insurer or report disputes
- the insurer says the condition is secondary and cannot support permanent impairment compensation
- the insurer says work was not a substantial contributing factor
- section 11A is raised in response to management action
- the diagnosis is accepted but capacity impact is understated
- the assessment mixes psychological impairment with physical impairment contrary to NSW rules
Questions to ask when the report comes back
How this connects to thresholds and strategy
SIRA says permanent impairment compensation generally requires 11% or more permanent impairment for physical injury, and 15% or more for primary psychological injury. Secondary psychological injury is treated differently. Those thresholds are not a payout promise; they are eligibility and strategy checkpoints that need to be applied to the accepted injury and current evidence.
A low WPI opinion may also affect weekly-payment planning, treatment time-limit issues, dispute posture, and whether work injury damages threshold advice is required. The safest approach is to review the method, evidence and consequences before signing or letting the insurer rely on a weak assessment.
Questions workers often ask
Is psychological injury assessed the same way as every other injury?
No. NSW permanent impairment assessment depends on the accepted injury, body system, medical evidence, maximum medical improvement and any NSW-specific guideline modification. The assessment method for psychological injury should be checked against the injury actually accepted in the claim.
Can I calculate the WPI percentage myself?
No. A trained permanent impairment assessor must perform the assessment. A worker can still check whether the report used the correct injury description, records, body system, causation assumptions and deduction reasoning.
What if the insurer report seems too low?
Ask for the report and the material sent to the assessor. For psychological injury, compare the report against treating records, imaging, specialist material, work duties and certificates of capacity before accepting the percentage or relying on it for settlement strategy.
Does maximum medical improvement matter?
Yes. SIRA guidance says permanent impairment assessment should occur when the condition has stabilised and is unlikely to change substantially in the next year with or without treatment. If treatment is incomplete, the timing may need review.
General information only
This information is general in nature and is not legal advice. You should obtain advice about your own circumstances before relying on a WPI percentage, accepting a lump sum offer, or responding to an insurer decision.
Reviewed by NSW Work Injury Claims - a branch of Stephen Young Lawyers.
Related injury and impairment pages
- Psychological injury
- Primary vs secondary psychological injury
- Secondary psychological injury
- Section 11A psychological injury
- Psychological symptoms and work capacity
- WPI assessment guide
- AMA5 and NSW permanent impairment guide
- Section 66 lump sum guide
- Lump sum WPI service
- Work injury damages
- Free claim check
Need a WPI assessment checked?
If the percentage does not match the accepted injury, treatment history, imaging, surgery, work duties or current restrictions, get the report checked before accepting the insurer position.