Any disputed issues may be settled under the Defense Base Act. Under ideal circumstances, a wounded employee can obtain indemnity and medical benefits in a Defense Base Act claim. Indemnity benefits are provided bimonthly and are renewable if the recipient remains disabled. Medical coverage will cover any therapy or treatment that is required. Even in ideal circumstances, a claimant should still have a Defense Base Act lawyer on their side when it comes to negotiating the settlement of a Defense Base Act claim. Insurance adjusters will attempt various strategies to weaken a claimant’s desire to move forward with their claim and will try to coerce a claimant to accept a minimal or unfavorable settlement. When it comes to negotiations with Defense Base Act insurance companies, having experienced counsel on one’s side is important.

Settlements must expressly state what claims are being settled. Any aspect of a claim, whether for compensation, medical benefits, or attorney fees can be settled separately. A settlement of a disability claim is separate and distinct from the right to death benefits. Accordingly, a settlement of a disputed disability claim under the Defense Base Act does not limit or extinguish the right of a claimant’s survivors to seek death benefits, if the claimant subsequently dies as a result of the workplace injury or occupational disease.

Permanent total disability claims can be settled. Once the parties determine and agree on the future value of t Defense Base Act claim, a lump sum settlement can be made. These types of settlements take into consideration an upward annual adjustment of benefits that the claimant would have been entitled to recover if they were paid on a monthly basis, rather than a lump sum.

Permanent partial disability claims can also be settled. Scheduled permanent partial disability clams are not reduced to present value and are generally paid in a single amount. These claims must be settled for full value. Non-scheduled permanent partial disability claims may be settled for a lump sum and discounted to present value.

The settlement process is complex. In some cases, reaching the wrong settlement can have serious negative economic effect on the claimant, especially when considering the loss of wage-earning capacity or the possibility that a partial or temporary disability may become permanent. Our lawyers can give you guidance about what settlement option to choose for your case, when filing a Defense Base Act Claim.