5. Guidance for claimants' representatives
The compensator will give CRU your details when they notify CRU of your client's compensation claim.
You should always give the compensator your client's full name, address, date of birth and, where known, their National Insurance number. You should also provide as much information as possible about the injured person's injuries or nature of the disease.
If your client has had a road traffic accident or attended hospital for an injury on or after 29 January 2007, it is essential that you provide details of the hospital(s) attended, and whether the accident happened during the course of the injured person's employment.
If you give incorrect or incomplete details it may cause delay or inaccuracies in calculating the amount of recoverable benefit and or lump sum payment.
If your client has been known by any other name, for example a maiden name, please give details.
As you will know the Social Security (Recovery of Benefits) Act 1997 (c. 27) includes provisions (Section 8) allowing compensators to offset some of the benefit that they have to repay against the compensation payment.
The compensation payment can be reduced by the amount of benefit repaid to the extent that it is paid under the same head of damages. The benefits are allocated to particular heads of damages under Schedule 2 to the Act. No reduction can be made to compensation on account of general damages.
The Social Security (Recovery of Benefits) Act 1997 also contains provisions for reviews and appeals including:
- the injured person can only be a party to any appeal if there has been a reduction applied to the compensation payment under Section 8. (Social Security (Recovery of Benefits) Act 1997 Section 11 (2) (b))
- if a compensator appeals and the amount of recoverable benefit is reduced then the Secretary of State will refund the relevant amount to the compensator. If there has been a reduction in the compensation under Section 8 then the compensator is legally obliged (Social Security (Recovery of Benefits) Regulations 1997 Regulation 11) to recalculate the compensation award under Section 8 and make any necessary refund to the injured person. If no offset has been made or the offset has been made, but not under Section 8, then the compensator can retain the refund.
The Secretary of State quite rightly does not get involved in negotiations between the injured party’s representatives and the compensator. However, customer complaints have highlighted the fact that some claims which were settled on a ‘global basis’ (with reduction on account of benefit not being made under Section 8) resulted in the subsequent reduction of the recoverable benefit being refunded to the compensator whilst the injured party received no additional money. This is correct and the compensator is in no way acting improperly – it is simply a consequence of the nature of the agreed settlement.
CRU fully appreciate that it is up to the injured party and their representative to negotiate an acceptable offer with the compensator, and in some cases injured parties or their representatives will consider that a global settlement without reference to Section 8 is in the best interests of the injured party. CRU do not in any way want to influence such decisions or to comment on the merit of any particular settlement.
However, CRU would like to draw your attention to two consequences of applying reductions on account of benefit received that are not calculated and applied under the legislative provisions of Section 8. These are that the injured party is not party to any appeal, and, if following review or appeal, recoverable benefits are reduced, the refund will be paid to the compensator and not passed on to the injured party.
You will be sent a copy of the Certificate that is issued to the compensator that is issued to the compensator.
If the injured person disagrees with the amount of benefit and or lump sum payment specified on the Certificate, they may ask for it to be reviewed (see Section 6 Reviews and Appeals). If necessary a fresh Certificate will be issued.
The injured person may also appeal against a Certificate. An appeal cannot be made until after final settlement of the claim and the compensator has repaid the total amount of recoverable benefits and or lump sum payments to the Secretary of State.
An injured person may only appeal if the amount of compensation they receive was reduced by the compensator to take account of benefit and or lump sum payment recovery in accordance with Section 8 of the 1997 Act and Regulation 12 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008.
If you are pursuing a claim for professional negligence or criminal injuries compensation, or need benefit details outside the five-year statutory period on behalf of your client please contact their benefit paying office.
Please note: Regulation 4 of the Social Security (Recovery of Benefits) Regulations 1997 and Regulation 16 of the Social Security (Recovery of Benefits) (Lump Sum Payments) Regulations 2008 refers to information to be provided by the injured person.
