Worker's compensation is payable for benefits related to your work injury while you are unable to work and need treatment and rehabilitation. Often, employers and the insurance company hope to limit the future exposure to pay benefits by offering a settlement/redemption that releases further obligation to pay benefits. Consider getting an evaluation of your claim from an worker's compensation attorney in your area.
They may be offering you a settlement for multiple reasons including:
closing out possible medical benefits you may be eligible for,
minimizing their exposure for future injuries caused by this incident,
offering a lump sum or full and final so that they may escape an award of permanent impairment.
It is best to meet with an attorney in your area regarding your injuries because you may be entitled to medical treatment, lost wages, reimbursement of mileage and/or prescriptions and out of pocket expenses as well as an award of compensation due to permanent impairment.