Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney for guidance specific to your situation.
Detailed Answer
1. Understanding Your Indiana Workers’ Compensation Lien
Under Indiana law, if you received workers’ compensation benefits for a work-related injury, your employer’s insurer gains a subrogation lien against any third-party recovery in a personal injury claim. See IC 22-3-2-18. This lien covers medical expenses and indemnity payments paid by the insurer.
2. Request and Verify the Lien Statement
- Identify the insurer or self-insured employer. Check your workers’ compensation file or contact your attorney.
- Send a written demand for a certified lien statement at least 60 days before settlement. Cite IC 22-3-2-18(c), which requires the insurer to itemize medical and indemnity benefits paid.
- Review the statement. Compare the insurer’s figures to your medical records and payment history. Discrepancies can delay settlement.
3. Negotiate or Dispute the Lien Amount
If you believe the lien amount is inaccurate or excessive, you can:
- Present supporting records to the insurer and propose an adjustment.
- File a petition with the Indiana Worker’s Compensation Board to resolve disputes. Use Form 10566 (Request for Resolution).
4. Allocate Settlement Proceeds
- Determine gross recovery. Identify how much is allocated to medical expenses, lost wages, pain and suffering, and attorney fees. A clear allocation helps satisfy the lien without overpaying.
- Deduct litigation costs and attorney’s contingency fee according to your retainer agreement.
- Set aside the lien amount in a trust or escrow account until you pay the insurer.
5. Satisfy the Lien and Close the Case
- Issue payment to the insurer in the full verified lien amount.
- Obtain a lien release or satisfaction document signed by the insurer.
- File the lien release with your court or the Worker’s Compensation Board, if required, to prevent future claims.
Helpful Hints
- Request your lien statement early to avoid last-minute delays.
- Keep meticulous records of all benefits received and medical bills.
- Use IN.gov resources to download forms: Indiana Worker’s Compensation Board Forms.
- Hold settlement funds in an IOLTA trust account until you satisfy all liens.
- Consider a joint settlement conference if the insurer refuses to negotiate.
- Consult an attorney experienced in Indiana workers’ compensation subrogation.