Defense Base Act: What is a Settlement ?
Posted by defensebaseactcomp on June 21, 2012
A settlement under the Defense Base Act is when the insurance company pays you a lump sum amount to close out your indemnity, your medical, or both.
It is only a settlement when you are paid a lump sum amount of money and you are done with the insurance company.
Nothing else is a settlement.
An agreement based on stipulations to pay you XX amount of money every month is not a settlement, your claim is not then settled.
And an agreement to provide your medical for your agreed upon injuries does not mean your medical is settled. In fact it means you will continue to litigate
But these agreements do allow the Insurance Company to seek reimbursement under the War Hazards Act as though they were settled
The Attorneys on both sides will be paid.
You may be left to battle the Insco’s and DoL on your own once this happens