1. The Law
1.4 DWP right to inspect records
The Social Security Administration Act 1992 Section 110, gives DWP inspectors the right to examine the records of compensators and employers to verify that they are complying fully with the provisions of the Social Security (Recovery of Benefits) Act 1997.
1.5 How the recovery scheme works
The main procedures for compensators
- compensation claim received;
- check the details to be given to CRU (name, address, date of birth, National Insurance number etc);
- notify CRU of the claim within 14 days. A form CRU1 is provided for this purpose (also available electronically, see section 13);
- receive acknowledgement of notification (form CRU4);
- when ready to make an offer of compensation, return form CRU4 to apply for a Certificate of Recoverable Benefits;
- receive acknowledgement of application (if not received within 14 days check with CRU);
- receive Certificate of Recoverable Benefits (if not received by date given on acknowledgement check with CRU). A copy will be sent to the injured person or his representative;
- pay compensation and, if any deductions have been made in accordance with the Act, inform the injured person;
- notify CRU of the result of the claim, even if it is unsuccessful, by returning the form CRU102 that accompanies the Certificate. Ensure that any changes to your reference number are clearly noted;
- the compensator becomes liable to pay the full amount of recoverable benefits to the CRU immediately before making the compensation payment;
- pay the total amount of recoverable benefit shown on the Certificate to the DWP. The CRU may enforce this debt through the courts at any point from the fifteenth day following the date the compensation was paid.
Please note: PAYMENT SHOULD NOT BE SENT TO CRU IF A COMPENSATION PAYMENT HAS NOT BEEN MADE TO THE INJURED PERSON.
The CRU Process
- Compensator receives a claim for compensation
- Compensator completes a CRU1 form and sends to CRU
- CRU4 form sent to Compensator by CRU
- Compensator is ready to settle claim and returns CRU4 requesting a Certificate of Recoverable Benefit
- CRU gathers benefit information, relating to the injured person and his accident, injury or disease
- Certificate of Recoverable Benefit issued to Comp and copy to injured person or his representative
- Compensator pays final compensation to the injured person
- Compensator pays CRU. CRU may enforce this debt through the courts at any point from the 15th day following the date the compensation was paid