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‘Collateral benefits’ received by accident victims also seeking damages at common law pose problems for both policy makers and lawyers. This article examines these problems in the specific context of the work related benefits which a plaintiff may receive. For example, should sickness payments or disablement pensions be taken into account to reduce the damages payable by a tortfeasor? Litigation has produced a complex set of rules influenced by policies which pull in different directions. There is uncertainty about how the employment benefits should be viewed: are they to be deducted because they are akin to those publicly provided by the welfare state, or are they to be left out of account, as are monies payable under an insurance policy, because they are truly private rights, independently negotiated and separately paid for? Do the benefits merely duplicate tort by being paid for the same purposes as the damages, or do they offer compensation for some additional losses? The questions posed by collateral benefits lie at the heart of any compensation system, and constitute one of the keys to its future direction. This is because the inter-relationship of compensation schemes is crucial in understanding the extent and fairness of the provision made for those incapacitated and disabled in society. The Law Commission has recently issued a Consultation Paper on collateral benefits. Although this article looks only at benefits related to work, it covers the key area where the major decisions must be made and the policies formulated.

The Overlap Between Damages for Personal Injury and Work Related Benefits