Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p16
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 16/35)
Character Range: 77095–79923

as it relates to a recovery notice.

Preliminary notice or recovery notice to insurer suspends both insurer's and compensation payer's liability

"59ZH. If an insurer has been given a preliminary notice under section 59ZE or a recovery notice under section 59ZG in relation to the insurer's liability, or possible liability, to indemnify a compensation payer against a liability arising from a claim for compensation:

    (a) the insurer is not liable to indemnify the compensation payer against that liability; and

    (b) the compensation payer is not liable to pay that compensation; while the notice has effect.

Insurer's payment to Commonwealth discharges liability

"59ZI. Payment of an amount that an insurer is liable to pay to the Commonwealth under section 59ZG in relation to a person claiming compensation operates, to the extent of the payment, as a discharge of:

    (a) the insurer's liability to the compensation payer; and

    (b) the compensation payer's liability to pay compensation to the person.

Offence to make compensation payment after receiving preliminary notice or recovery notice

"59ZJ.(1) If an insurer has been given a preliminary notice under section 59ZE or a recovery notice under section 59ZG in relation to the insurer's liability to make a payment indemnifying a compensation payer, the insurer must not make the payment to the compensation payer unless:

    (a) in the case of a preliminary notice—the Commission has given the insurer written notice that the preliminary notice is revoked; or

    (b) in the case of a recovery notice—the insurer has paid to the Commonwealth the amount specified in the notice; or

    (c) the Commission has given the insurer written permission to make the payment to the compensation payer.

Penalty: Imprisonment for 12 months.

    Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of the offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by the court on an individual convicted of the same offence.

"(2) An insurer who contravenes subsection (1) is, in addition to being liable to prosecution for an offence under subsection (1), liable to pay to the Commonwealth:

    (a) if the contravention relates to a preliminary notice—an amount determined by the Commission; and

    (b) if the contravention relates to a recovery notice—the recoverable amount specified in the notice.

"(3) The amount determined by the Commission under paragraph (2)(a) may not be more than the smallest of the amounts worked out under:

    (a) if the person claiming compensation is not a member of a couple— subsection 59ZG(4);