Compensation in respect of suspension
65.Paragraph 7 inserts new section 131A into the RTA to require the Secretary of State to introduce a compensation scheme.
66.Subsection (1) of the new section 131A provides that the Secretary of State must introduce a compensation scheme by regulation in respect of income and non-income losses and any other matters which relate to such a suspension and are provided for in the scheme. The losses must be incurred by persons as a result of their registration or licence being suspended by virtue of section 128(7A) to (7G) or (as the case may be) 130(7) to (13). (This includes the case where a suspension is imposed in the context of an application to extend registration or renew a licence. In such a case, the suspension is imposed by virtue of section 128(7A) to (7G) or 130(7) to (13) as applied by the glosses referred to in paragraphs 55 and 64 of these notes.)
67.Subsection (2) of the new section 131A limits the circumstances in which compensation payments may be made under the scheme.
68.
Subsection (3) of the new section 131A provides that, where the Registrar’s decision to remove the person’s name from the Register or revoke their licence is overturned on appeal, any compensation may relate only to the period of suspension.
69.Subsection (4) of the new section 131A requires the compensation scheme to specify descriptions of income and non-income losses but does not oblige the scheme to make payments in respect of all such losses or the full amount of any losses.
70.Subsection (5) of the new section 131A allows the scheme to specify how losses will be valued and to specify the amounts to be paid in compensation or how they will be calculated. The scheme may also provide procedures for making claims and their determination.
71.Subsection (6) of the new section 131A provides for the right of appeal to the First-tier Tribunal of a person aggrieved by a decision of the Secretary of State regarding entitlement to payments or the amounts of any such payments.
72.Subsection (7) of the new section 131A provides, in the case of appeal, for the First-tier Tribunal to make such order as it considers appropriate.
73.Subsection (8) of the new section 131A provides that the First-tier Tribunal may refer the decision back to the Secretary of State for reconsideration if evidence emerges during the course of the appeal that had not previously been made available to the Secretary of State.
74.Subsection (9) of the new section 131A defines income and non-income losses.
