Loss of Finger Compensation: What You May Be Entitled To May 18, 2026

Hand and finger injuries can have a lasting impact on your ability to undertake activities of daily living, your ability to work and your ability to enjoy activities and care for yourself. In the State of Victoria, depending on how the injury occurred, lump sum compensation for a hand or finger injury may be available by pursuing a claim for common law damages and also, for those injured in the course of employment or in a transport accident, by making an impairment claim through the TAC or through WorkCover, who both administer statutory impairment benefits schemes. Understanding how loss of finger compensation works, how impairment is assessed and what affects a potential payout can help you make informed decisions after an injury.

Read on to gain a better understanding of some of the nuances of lump sum compensation for hand and finger injuries, as well as the ways a TAC claim lawyer, and WorkCover claim lawyer can help.

What injuries qualify for loss of finger compensation?

In Victoria, compensation for the loss of a finger or part of a finger is generally available when the injury is connected to:

• A transport accident, covered by the TAC
• A work-related injury, covered by WorkCover
• Another party’s negligence, such as unsafe premises or medical negligence, which may give rise to a public liability or negligence claim

Common injuries that may qualify include:

• Hand or finger injuries that significantly affect function
• Partial or full amputation of one or more fingers or fingertips
• Severe crush injuries, fractures, tendon or nerve damage that permanently reduce movement, strength or sensation

To receive a lump sum payout for loss of finger, the injury usually needs to be permanent and stable, meaning it is not expected to substantially improve. Even where a lump sum is not available, many people can still access medical expenses, rehabilitation and income support through TAC or WorkCover.

How TAC and WorkCover assess permanent impairment

Both TAC and WorkCover assess finger injuries using formal permanent impairment assessments to determine a claimant’s eligibility for an impairment benefit.

The process generally involves:

• An independent medical examination with an accredited assessor
• Measurement of range of motion, grip strength, sensation, scarring and functional loss
• Assigning an impairment percentage to each affected finger
• Converting that rating to a hand, upper limb and ultimately a Whole Person Impairment (WPI) percentage

That WPI figure is then used to calculate the lump sum payable under statutory scales. For WorkCover and TAC , minimum impairment thresholds  apply before an impairment benefitlump sum is payable.  Under TAC and WorkCover, an impairment benefit is a one-off, non-taxable payment for non-economic loss which is separate from weekly payments, treatment costs or any later common law claim. A TAC and WorkCover impairment benefit claim is a no-fault claim which can be pursued in addition to a common law damages claim, which can also be pursued if the injury has been caused by another party’s negligence.

Typical payout amounts for loss of a finger or thumb under an Impairment Benefits Claim 

Payouts depend on the level of impairment, which finger is affected, overall hand function and the scheme under which you claim.

Under a TAC impairment benefit claim:

• A hand and/or finger injury assessed as a WPI of  11% to 20% results in a lump sum in the range of approximately $9,580to $26,060 (with these figures annually indexed to account for inflation)
• Higher impairment percentages attract significantly larger payments, so that a hand and/or finger injury assessed as a WPI of  21 % to 30% results in a lump sum in the range of approximately WPI of  11% to 20% results in a lump sum in the range of approximately $28,660 to $52,060, and with higher WPI attracting larger payments again.

WorkCover permanent impairment benefits follow a similar scaled approach, as well as a having a no disadvantage compensation table which sets minimum amounts awarded for loss of a finger and or joints of a finger or of a hand under an impairment benefits claim. For instance, the minimum amount for the total loss of the thumb of the right hand under a WorkCover impairment claim is currently $109,520. Certain fingers tend to have a greater functional impact. For example:

• Loss of thumb compensation is often higher due to the thumb’s critical role in grip and hand strength
• Loss of index finger compensation can be significant where fine motor skills or the ability to carry out precision work are affected

In a TAC or WorkCover claim If your injury has occurred due to the negligence of another, such as another driver or your employer it is important to remember under these schemes you can also bring a claim for common law damages for your injury. Under common law damages the quantum of claims is not based solely on whether a finger has been lost or on WPI but  on how the injury affects your ability to work and live. The same injury can have very different consequences depending on your occupation and lifestyle.

How medical evidence affects finger injury compensation

Medical evidence plays a central role in any finger injury compensation claim, as insurers and courts rely heavily on documentation to understand the nature of the injury and its long-term impact.

Relevant medical evidence commonly includes hospital and surgical records detailing amputations, repairs or reconstructive procedures, specialist reports from hand surgeons, orthopaedic surgeons or occupational therapists describing reduced movement, nerve damage or functional limitations, and GP or physiotherapy notes tracking ongoing pain, reduced strength, loss of dexterity and day-to-day restrictions.

These records support permanent impairment assessments and help determine whether the condition has stabilised, which is a requirement before a lump sum claim can proceed, and they are also critical if a separate common law damages claim is pursued for pain and suffering or loss of earning capacity.

What to do if your compensation claim is denied or under-assessed

Finger injury compensation claims can be denied or under-assessed for a range of reasons, including disputes about how the injury occurred, whether it is work-related or transport-related, or disagreement over the assessed level of permanent impairment. If a claim is rejected or the payout appears too low, it is important to request written reasons for the decision, review and gather additional medical evidence such as updated specialist reports, and seek advice from personal injury lawyers experienced with TAC and WorkCover claims.

In many cases, impairment ratings can be challenged, reassessments arranged, or separate common law claims pursued where another party’s negligence contributed to the injury, and obtaining advice early can make a meaningful difference to the outcome and help ensure the correct compensation is received.

The final word

Losing a finger or part of a finger can be life-changing, but support and compensation may be available. Whether your injury occurred at work, on the road or due to another party’s negligence, understanding how loss of finger compensation works in Victoria can help you protect your rights and plan for the future.

If you are unsure what you may be entitled to, legal advice can help clarify your options and guide you through the claims process. Contact us to learn more about finger injury compensation.