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Guide 1 - Psychological & psychiatric disorder (Schedule 1, Clause 5)
 

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Psychological or psychiatric disorder Category 1 and Category 2 was added to the Table of Compensable Injuries on 7 April 1999 as a result of the Victims Compensation Amendment Act 1998. At the same time the compensable injury of Shock was removed from the Table.

It should be noted that each Category of the new compensable injury requires the disorder to be disabling, either moderately (Category 1) or severely (Category 2).

The applicant must establish a recognised disorder which is chronic and either moderately or severely disabling. “Chronic” does not have the technical meaning ascribed by DSM IV but rather has its normal meaning of a disorder persisting for a lengthy period of time. The disorder must be moderately or severely disabling that is the disorder must have impacted on key areas of functioning to a moderate or a severe degree.

In a second reading speech for the Victims Compensation Amendment Bill 1998 (Hansard 22/10/98) The Hon R.D.Dyer said that the 1998 amendments provide for replacement of shock with a new category of psychological injury:
    "The new injury category will require diagnosis of a long-term psychological injury which results in severe impairment of the person’s ability to function in their usual day to day activities. To claim for this injury an applicant will be required to undergo an independent assessment”.
The compensable injury requires that the disorder be “chronic”. The term “chronic” is used in the Diagnostic and Statistical Manual of Mental Disorder, 4th edition (DSM-IV) as a “specifier” to indicate the duration (usually 3 months or more) of some but not all psychiatric disorders. “Chronic” as used in the Table of Compensable Injuries in relation to a psychological or psychiatric disorder simply has its normal meaning of “continuing for a long time” or in the Minister’s words, “long-term”.

What is “disabling” or what is a disability is not defined in the Act. It would seem that a psychological or psychiatric disorder is disabling when it results in some material impairment in an important area of day to day functioning or in the Minister’s words, when it “results in severe impairment of the person’s ability to function in their usual day to day activities”. The fact that a disorder results in adverse symptoms impacting on an applicant’s life does not necessarily mean that the disorder is “disabling” within the meaning of the Act.

Applicants seeking to establish the compensable injury of psychological or psychiatric disorder must submit a written assessment from an Authorised Report Writer (clause 5 of Schedule 1).

Note: In respect of applications lodged on or after 31 May 2000, the compensable injury of psychological or psychiatric disorder category 1 will only apply in relation to an act of violence where one of the following offences is involved:
(a) armed robbery
(b) abduction
(c) kidnapping

Cec Brahe
Chairperson, Victims Compensation Tribunal
25 July 2000






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The information contained on this page is not legal advice. If you have a legal problem you should talk to a lawyer before making a decision about what to do. The information on this page is written for people resident in, or affected by, the laws of New South Wales, Australia only.

most recently updated 9 January 2002