The Salvation Army took a "largely litigious approach" towards victims of horrific physical and sexual abuse, especially those who sought compensation payments, a royal commission has heard.
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A "matrix" was developed in 2005 to calculate the amounts to be offered to victims based on the age of the child at the time of the abuse, the length of time they spent in Salvation Army run homes, the kind of abuse suffered and impact it had on their lives.
Counsel Assisting the Commission, Simeon Beckett, said ex gratia payments made over the past two decades ranged from $5000 to $150,000, with an average of $50,758.
One claimant, known as EF, who had suffered multiple acts of anal rape by Major Victor Bennett, was offered $11,000.
The payments increased steadily following legal action taken in the District Court by a complainant known as EP in 1997. The case was settled 10 years later for $140,000 and the Salvation Army claimed against its insurer, Zurich Insurance.
Zurich and the Salvation Army came to an agreement whereby the insurer agreed to pay $950,000 for settlement of EP's claim but also to cover future claims.
The Salvation Army agreed to provide pastoral care, counselling and ex gratia payments of up to $150,000 and only to claim on its policy of insurance where victims commenced litigation.
The hearing into the Salvation Army's Australian Eastern Territory's claims process continues.
