The Personal Injuries (Civilians) Scheme 1983

Adjustment of awards in respect of other compensation

63.—(1) Where the Secretary of State is satisfied that compensation has been or will be paid to or in respect of a person to or in respect of whom a pension or funeral grant is being or may be paid or that any compensation which has been or will be paid will benefit such a person, the Secretary of State may take the compensation into account against the pension or funeral grant in such manner and to such extent as he may think fit and may withhold or reduce the pension or funeral grant accordingly.

(2) Where the Secretary of State in any case considers that it is by reason of some act or omission by or on behalf of a person to or in respect of whom a pension or funeral grant is being or may be paid that—

(a) there is no compensation to be taken into account against that pension or funeral grant under paragraph (1) of this Article; or

(b) the amount of compensation so to be taken into account against that pension or funeral grant is less than it would otherwise have been;

and the Secretary of State is of the opinion that such act or omission was unreasonable, the Secretary of State may assess the amount of the compensation which, in his opinion, would have fallen to be taken into account as aforesaid but for such act or omission, and may, for the purpose of paragraph (1) of this Article, treat the amount so assessed as if it were compensation which could be taken into account under that paragraph against that pension or funeral grant.

(3) In this Article “compensation” means —

(a) any periodical or lump sum payment in respect of the disablement or death of any person, or in respect of any injury, disease or incapacity sustained or suffered by any person, being a payment—

(i) for which provision is made by or under any enactment, Warrant, Order in Council, Order, Scheme (including this Scheme), ordinance, regulation or other instrument; or

(ii) which is recoverable as damages at common law; or

(b) any periodical or lump sum payment which, in the opinion of the Secretary of State, is recoverable or payable—

(i) under any enactment, scheme, ordinance, regulation or other instrument whatsoever promulgated or made in any place outside the United Kingdom; or

(ii) under the law of any such place;

and is analogous to any payment falling within sub-paragraph (a) of this paragraph; or

(c) any periodical or lump sum payment made in settlement or composition of, or to avoid the making of, any claim to any payment falling within sub-paragraph (a) or (b) of this paragraph, whether liability on any such claim is or is not admitted.