Compensation can add misery to injury

IT'S so tempting to see misfortune as a money spinner. Slipped on a grape at the supermarket? Sue! Stressed out by an overbearing boss? Claim!

Hurt your neck in a car accident? Collect!

But here's something to consider before you speed-dial a lawyer - a compensation payout may make life worse.

Mounting evidence suggests seeking, and pocketing, a fat payout adds to a victim's misery. Studies consistently show injured patients take longer to recover and have worse long-term mental and physical health if they get sucked into our compo culture.

Well, I hear you say, maybe some people are just malingerers. Or perhaps they're fabricating pain to milk the system.

But the research seems to show the effect exists whether a claim is frivolous or entirely worthy. Be it a woman who wants money for toppling over in her high heels at work or a grieving mum seeking a financial salve for the pain she feels after her child's death.

Even with an injury that can be studied objectively, such as a bone fracture,

studies show uncompensated patients get on with life faster.

The most satisfied patients, studies have found, are those who blame themselves for their misfortune and don't bother pursuing anyone for retribution.

Conversely, the most dissatisfied, regardless of injury severity, are those with an unsettled compensation claim.

Intuitively, it makes sense. The adversarial nature of the insurance or court process leaves many victims feeling powerless. And surely all that time preparing for medical tests to prove they're unwell must chew up mental energy that could be better directed toward a faster recovery?

But even when the compo scheme is no-fault, and the insurers agree to pick up the tab without need for an army of lawyers, a payout still seems to have a negative influence on recovery.

Melbourne trauma expert Prof Peter Cameron has written an editorial on the topic that will appear in the international journal Injury.

In it, he argues that at the very least we must conduct more research to find out why compensation schemes are such a barrier to recovery from injury.

I'm not suggesting we axe the schemes or prevent people pursuing justice through

the courts.

Clearly, victims are entitled to be compensated when things go wrong. And in many instances, forcing companies, employers or government departments to cough up when they've done wrong is the best way to hold them to account.

We need to frame the schemes better, though, so we're not harming the people we're trying to help.

Monash University last month formed a new Institute for Safety, Compensation and Recovery Research -- a joint initiative between WorkSafe and the TAC - to start the ball rolling on new approaches.

They might want to speed things up. It can only be a matter of time before someone sues because their compo payout made their life worse.


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