Document ID: chunk:federal_register_of_legislation:C2004A04837:section:530:p14
Version: federal_register_of_legislation:C2004A04837
Segment Type: section
Provision Reference: s 530 (pt 14/35)
Character Range: 71981–74748

of insurance, may be liable to indemnify the potential compensation payer against any liability arising from the claim for compensation;

the Commission may give written notice to the insurer that the Commission may wish to recover an amount from the insurer.

"(2) The notice must contain:

    (a) a statement of the insurer's obligation under section 59ZF; and

    (b) a statement of the effect of section 59ZJ so far as it relates to a preliminary notice.

Insurer must notify Department of liability

"59ZF. If an insurer:

    (a) is given notice under section 59ZE in relation to a claim; and

    (b) either before or after receiving the notice, becomes liable to indemnify the compensation payer, either wholly or partly, in relation to the claim;

the insurer must give written notice of the liability to the Department within 7 days after:

    (c) becoming liable; or

    (d) receiving the notice;

whichever happens later.

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.

Commission may send recovery notice to insurer

"59ZG.(1) If:

    (a) an insurer is liable, under a contract of insurance, to indemnify a compensation payer against any liability arising from a person's claim for compensation in respect of the person's lost earnings or lost capacity to earn; and

    (b) the person receives or claims a compensation affected pension for the periodic payments period or the lump sum preclusion period;

the Commission may give written notice to the insurer that the Commission proposes to recover the amount specified in the notice from the insurer.

"(2) If an insurer is given notice under subsection (1), the insurer is liable to pay to the Commonwealth the amount specified in the notice.

"(3) The amount specified in the notice is the recoverable amount and is worked out under subsections (4) and (5).

"(4) If:

    (a) the person claiming compensation is not a member of a couple; or

    (b) the person claiming compensation is a member of a couple and the person's partner neither receives nor claims:

        (i) a compensation affected pension; or

        (ii) a compensation affected payment (under the Social Security Act);

for the periodic payments period or the lump sum preclusion period;

the recoverable amount is equal to the smallest of the following amounts:

    (c) the sum of the pension payments, or (if the person's