---
title: "Settlement advice letter before a personal injury release is signed"
url: "https://ailawframework.com/precedents/personal-injury-and-compensation/personal-injury-settlement-advice-letter"
type: "precedent"
site: "AI Law Framework"
id: "a21-personal-injury-settlement-advice-letter"
area_id: "A21"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A21-T1-R10", "A21-W20261018-1", "A21-W20261018-2", "A21-W20261018-4"]
law_stated_as_at: "2026-10-23"
---

# Settlement advice letter before a personal injury release is signed

> Letter to the injured person before a personal injury settlement is signed, with blanks for the lawyer's view on liability, the ranges, the recommendation, and the costs figures required before settlement.

Canonical page: https://ailawframework.com/precedents/personal-injury-and-compensation/personal-injury-settlement-advice-letter  
Law stated as at: 2026-10-23

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Personal Injury & Compensation](https://ailawframework.com/precedents/personal-injury-and-compensation.md)
- Jurisdictions: Victoria, Queensland, New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-23
- Status: Maintained. Checked on 2026-10-23 against the 5 authorities it cites, for Victoria, Queensland and New South Wales.

## When to use it

Use when a settlement figure is under discussion and the client is to decide whether to accept it. The lawyer writes the recommendation. Do not send it as a substitute for the sanction or approval papers where the client cannot give instructions.

## Used for these tasks

- [Draft a settlement advice and conference paper](https://ailawframework.com/practice/personal-injury-and-compensation/draft-a-settlement-advice-and-conference-paper.md)
- [Notify Medicare of a judgment or settlement and track the clearance](https://ailawframework.com/practice/personal-injury-and-compensation/notify-medicare-of-a-judgment-or-settlement-and-track-the-clearance.md)
- [Calculate the Centrelink compensation preclusion period before settlement](https://ailawframework.com/practice/personal-injury-and-compensation/calculate-the-centrelink-compensation-preclusion-period-before-settlemen.md)
- [Account for NDIS supports when settling a participant’s compensation claim](https://ailawframework.com/practice/personal-injury-and-compensation/account-for-ndis-supports-when-settling-a-participant-s-compensation-cla.md)

## How AI may be used

AI may assemble the dates, the offer terms and the sourced refund figures in a firm-controlled tool; the lawyer writes the liability view, the ranges and the recommendation.

**AI may:**

- Set out the offer terms from the written offer or the draft deed the lawyer has marked as current
- Place Medicare and other refund figures beside the notice they come from
- Leave the recommendation, the ranges and any preclusion length blank

**AI must not:**

- Must not write the recommendation or a likely outcome
- Must not invent a preclusion period, a Medicare charge or an NDIS repayment
- Must not put the medical opinions discussed in this letter into a public tool

**The lawyer checks:**

- Section 177 or s 312 disclosure, as applicable, is in the letter before the client is asked to sign
- The net figure is traced to the distribution statement and changes if a notice is still outstanding
- The client can instruct. If not, this letter is not the vehicle for the decision
- Victorian Uniform Law text is confirmed if the practice is in Victoria. That instrument was not opened

## Authorities

- [Legal Profession Uniform Law (NSW) s 177 (disclosure before the settlement of a litigious matter is executed)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s177.html)
- [Legal Profession Act 2007 (Qld) s 312 (additional disclosure before the settlement of a litigious matter is executed)](https://classic.austlii.edu.au/au/legis/qld/consol_act/lpa2007179/s312.html)
- [Services Australia, Medicare Compensation Recovery Notification Requirements (threshold, 28 days, and no payment to the injured person until the charge or a valid advance is paid)](https://www.servicesaustralia.gov.au/medicare-compensation-recovery-notification-requirements)
- [Services Australia, Preclusion periods for Centrelink compensation recovery (tell the agency on settlement if a payment is received or has been claimed)](https://www.servicesaustralia.gov.au/preclusion-periods-for-centrelink-compensation-recovery?context=22516)
- [Supreme Court of Victoria Practice Note SC Gen 25 (14 May 2026), paragraphs 6.8 and 6.10 (public AI tools and caution with affidavit material)](https://www.supremecourt.vic.gov.au/areas/legal-resources/practice-notes/sc-gen-25-the-use-of-artificial-intelligence-by-court-users)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/personal-injury-and-compensation/personal-injury-settlement-advice-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*