Understanding a Lump Sum DBA Settlement Payment

The Defense Base Act (DBA) is an extension of the 1941 U.S. Worker’s Compensation Program that was enacted to provide coverage for employees working outside of the U.S. for U.S. employers. The policy allows employees to receive compensation while working at American military bases in a national defense or diplomacy capacity or as a civilian working on an American federal military contract. The DBA insurance program is expansive, covering all service contracts and full-time employees at American defense bases throughout the world. One of the most frequent questions about the DBA revolves around electing a payment structure for successful DBA claims.

Are Lump Sum DBA Payments Beneficial?

DBA insurance carriers are always seeking to pay claimants as little as possible in any given situation. Having a legal professional assist with the claim and settlement process is essential to ensure that you receive the proper compensation as a result of your claim. One of the common questions about the settlement process is whether a claimant should accept a lump sum payment or regularly scheduled payments over a longer period of time. There are several things to consider about the process, including future alterations to the terms of a settlement, dealing with the DBA insurance carriers throughout the payment process, and what happens to settlement payments if the claimant dies.

Settlement Stability

One reason it may make sense for a claimant to explore accepting a lump sum settlement payment is that the laws governing DBA claims can sometimes change. While they might not always impact a claimant’s payments, such alterations could impact the value of the settlement. Even relatively small changes to the Longshore and Harbor Workers’ Compensation Act or the DBA itself could severely reduce the value of a DBA claim.

DBA Insurance Carriers

Beyond the inherently shifting nature of the law around the DBA, insurance carriers are highly motivated to end their claimant payments. This desire manifests in a number of ways, including insurance companies attempting to catch workers engaging in activities that may be considered outside the scope of the worker’s medical restrictions. DBA insurance carriers routinely have investigators look into claimants in order to terminate compensation. Beyond that, claimants are regularly sent to independent medical evaluations with doctors that may have ties to the insurance carriers. Dealing with the DBA insurance carriers is a legitimate consideration when weighing a lump sum payment against regular payments.
Claimant Death or Injury

Finally, a claimant should consider that if an injured worker dies while receiving DBA payments through no relation to the claim, all compensation stops. This is potentially devastating to the injured worker’s family and anyone that is being supported by those payments. Further, if an injured worker sustains another injury while receiving DBA compensation, the compensation may also be terminated. This is due to the fact that if the insurance company can prove that the new injury would also prevent the worker from returning to work overseas, the payments for the original injury are no longer necessary. Navigating the DBA process is fraught with challenges and requires an experienced team to support you. Make sure you are making informed decisions with your claims.

Do You Need Help with Your Defense Base Act Claim in Florida?

If you or someone you love has or is considering filing a Defense Base Act claim, let the attorneys at Friedman Rodman & Frank fight to help you recover the damages you deserve. Expenses and injuries sustained on the job can quickly become overwhelming, and having an experienced roster of DBA attorneys by your side can make a world of difference in the compensation you receive. Our experienced attorneys have successfully represented injured workers at every stage of their claims, ensuring that they obtain the compensation that they deserve. With our team, you can have faith that your claim is being pursued properly. If you have questions about your case, call us today at 877-627-5116 and schedule a free and no-obligation initial consultation with a DBA lawyer.