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PART 4Reduction of compensation

Reduction of compensation: complex cases

14.—(1) This regulation applies where—

(a)a compensation payment in the form of a lump sum (“the earlier payment”) has been made to or in respect of P; and

(b)subsequently another such payment (“the later payment”) is made to or in respect of the same P in consequence of the same disease.

(2) In determining the liability under regulation 10(1) arising in connection with the making of the later payment, the amount referred to in that regulation is to be reduced by any amount paid in satisfaction of that liability as it arose in connection with the earlier payment.

(3) Where—

(a)a payment made in satisfaction of the liability under regulation 10(1) arising in connection with an earlier payment is not reflected in the certificate in force at the time of the later payment; and

(b)in consequence, the aggregate of payments made in satisfaction of the liability exceeds what it would have been had that payment been so reflected,

the Department is to pay the compensator who made the later payment an amount equal to the excess.

(4) Where—

(a)a compensator receives a payment under paragraph (3); and

(b)the amount of the compensation payment made by that compensator was calculated under regulation 12,

then the compensation payment is to be recalculated under that regulation, and the compensator must pay the amount of the increase (if any) to the person to whom the compensation payment was made.

(5) Where both the earlier payment and the later payment are made by the same compensator, that compensator may—

(a)aggregate the gross amounts of the payments made;

(b)calculate what would have been the reduction made under regulation 12(3) if that aggregate amount had been paid at the date of the last payment on the basis that—

(i)the aggregate amount is to be taken to be the gross amount, and

(ii)the amount of any recoverable lump sum payment is to be taken to be the amount determined in accordance with the most recent certificate;

(c)deduct from that reduction calculated under sub-paragraph (b) the amount of the reduction under regulation 12(3) from any earlier payment; and

(d)deduct from the latest gross payment the net reduction calculated under sub-paragraph (c),

and accordingly the latest payment may be nil.

(6) Where a refund is made under paragraph (3), the Department is to send the compensator (with the refund) and the person to whom the compensation payment was made a statement showing—

(a)the total amount that has already been paid by that compensator to the Department;

(b)the amount that ought to have been paid by that compensator; and

(c)the amount to be repaid to that compensator by the Department.

(7) Where the reduction of a compensation payment is recalculated by virtue of paragraph (4) or (5), the compensator must give notice of the calculation to P.