The Social Security (Recovery of Benefits) Regulations 1997

Reduction of compensation: complex casesE+W+S

9.—(1) This regulation applies where—

(a)a compensation payment in the form of a lump sum (an “earlier payment") has been made to or in respect of the injured person; and

(b)subsequently another such payment ( a “later payment") is made to or in respect of the same injured person in consequence of the same accident, injury or disease.

(2) In determining the liability under section 6(1) arising in connection with the making of the later payment, the amount referred to in that subsection shall be reduced by any amount paid in satisfaction of that liability as it arose in connection with the earlier payment.

(3) Where—

(a)a payment made in satisfaction of the liability under section 6(1) arising in connection with an earlier payment is not reflected in the certificate of recoverable benefits in force at the time of a later payment, and

(b)in consequence, the aggregate of payments made in satisfaction of the liability exceeds what it would have been had that payment been so reflected,

the Secretary of State shall pay the compensator who made the later payment an amount equal to the excess.

(4) Where—

(a)a compensator receives a payment under paragraph (3), and

(b)the amount of the compensation payment made by him was calculated under section 8,

then the compensation payment shall be recalculated under section 8, and the compensator shall pay the amount of the increase (if any) to the person to whom the compensation payment was made.

(5) Where both the earlier payment and the later payment are made by the same compensator, he may—

(a)aggregate the gross amounts of the payments made by him;

(b)calculate what would have been the reduction made under section 8(3) if that aggregate amount had been paid at the date of the last payment on the basis that—

(i)so much of the aggregate amount as is attributable to a head of compensation listed in column (1) of Schedule 2 shall be taken to be the part of the gross amount which is attributable to that head, and

(ii)the amount of any recoverable benefits shown against any head in column (2) of that Schedule shall be taken to be the amount determined in accordance with the most recent certificate of recoverable benefits;

(c)deduct from that reduction calculated under sub-paragraph (b) the amount of the reduction under section 8(3) from any earlier payment; and

(d)deduct from the latest gross payment the net reduction calculated under sub-paragraph (c) (and accordingly the latest payment may be nil).

(6) Where the Secretary of State is making a refund under paragraph (3), he shall send to the compensator (with the refund) and to the person to whom the compensation payment was made a statement showing—

(a)the total amount that has already been paid by that compensator to the Secretary of State;

(b)the amount that ought to have been paid by that compensator; and

(c)the amount to be repaid to that compensator by the Secretary of State.

(7) Where the reduction of a compensation payment is recalculated by virtue of paragraph (4) or (5) the compensator shall give notice of the calculation to the injured person.