Compensation for functional limitation is paid to an injured person who suffers a general permanent functional limitation as a result of an injury or illness caused by a claim event.
Compensation for functional limitation does not compensate for deterioration of the ability to work caused by the claim event, costs arising from the need of care or assistance, or other injuries for which separate provisions on compensation are laid down in the Workers' Compensation Act.
General functional limitation refers to deterioration of functional ability caused by the claim event. This estimation is at the earliest made one year after the accident. A functional limitation is considered permanent when based upon medical probability the condition of the injury or illness will no longer improve, however, assessment should happen no earlier than one year after the date of the claim event.
For the purpose of assessing the degree of general functional limitation, the disabilities caused by different injuries and illnesses are considered proportionally by classifying them into 20 disability categories based on their medical characteristics and degree of severity. The disability categories are determined by using labels that describe as closely as possible one or more injuries or illnesses, or more general labels describing a functional limitation of an extremity, sense or other functional entity, or labels describing general functional limitation resulting from an injury or illness.
Compensation for functional limitation is paid as a lump sum for the injuries and illnesses in disability categories 1-5 and as a continuous provision for the injuries and illnesses in disability categories 6-20. Age, sex and the disability category of the injured affect the amount of the compensation for functional limitation.
Compensation for functional limitation is a tax-free compensation.