Social Security Administration Act 1992

81 Interpretation of Part IV

(1) In this Part of this Act—

• “benefit” means any benefit under the Contributions and Benefits Act except child benefit and, subject to regulations under subsection (2) below, the “relevant benefits” are such of those benefits as may be prescribed for the purposes of this Part of this Act;

• “certificate of deduction” means a certificate given by the compensator specifying the amount which he has deducted and paid to the Secretary of State in pursuance of section 82(1) below;

• “certificate of total benefit” means a certificate given by the Secretary of State in accordance with this Part of this Act;

• “compensation payment” means any payment falling to be made (whether voluntarily, or in pursuance of a court order or an agreement, or otherwise)—

  (a)

  to or in respect of the victim in consequence of the accident, injury or disease in question, and

  (b)

  either—

  (c)

  by or on behalf of a person who is, or is alleged to be, liable to any extent in respect of that accident, injury or disease; or

  (ii)

  in pursuance of a compensation scheme for motor accidents,

  but does not include benefit or an exempt payment or so much of any payment as is referable to costs incurred by any person;

• “compensation scheme for motor accidents” means any scheme or arrangement under which funds are available for the payment of compensation in respect of motor accidents caused, or alleged to have been caused, by uninsured or unidentified persons;

• “compensator”, “victim” and “intended recipient” shall be construed in accordance with section 82(1) below;

• “payment” means payment in money or money’s worth, and cognate expressions shall be construed accordingly;

• “relevant deduction” means the deduction required to be made from the compensation payment in question by virtue of this Part of this Act;

• “relevant payment” means the payment required to be made to the Secretary of State by virtue of this Part of this Act;

• “relevant period” means—

  (a)

  in the case of a disease, the period of 5 years beginning with the date on which the victim first claims a relevant benefit in consequence of the disease; or

  (b)

  in any other case, the period of 5 years immediately following the day on which the accident or injury in question occurred;

  but where before the end of that period the compensator makes a compensation payment in final discharge of any claim made by or in respect of the victim and arising out of the accident, injury or disease, the relevant period shall end on the date on which that payment is made; and

• “total benefit” means the gross amount referred to in section 82(1)(a) below.

(2) If statutory sick pay is prescribed as a relevant benefit, the amount of that benefit for the purposes of this Part of this Act shall be a reduced amount determined in accordance with regulations by reference to the percentage from time to time specified in section 158(1)(a) of the Contributions and Benefits Act (percentage of statutory sick pay recoverable by employers by deduction from contributions).

(3) For the purposes of this Part of this Act the following are the “exempt payments”—

(a) any small payment, as defined in section 85 below;

(b) any payment made to or for the victim under section 35 of the [1973 c. 62.] Powers of Criminal Courts Act 1973 or section 58 of the [1980 c. 62.] Criminal Justice (Scotland) Act 1980;

(c) any payment to the extent that it is made—

(i) in consequence of an action under the [1976 c. 30.] Fatal Accidents Act 1976; or

(ii) in circumstances where, had an action been brought, it would have been brought under that Act;

(d) any payment to the extent that it is made in respect of a liability arising by virtue of section 1 of the [1976 c. 13.] Damages (Scotland) Act 1976;

(e) without prejudice to section 6(4) of the [1979 c. 17.] Vaccine Damage Payments Act 1979 (which provides for the deduction of any such payment in the assessment of any award of damages), any payment made under that Act to or in respect of the victim;

(f) any award of compensation made to or in respect of the victim by the Criminal Injuries Compensation Board under section 111 of the [1988 c. 33.] Criminal Justice Act 1988;

(g) any payment made in the exercise of a discretion out of property held subject to a trust in a case where no more than 50 per cent. by value of the capital contributed to the trust was directly or indirectly provided by persons who are, or are alleged to be, liable in respect of—

(i) the accident, injury or disease suffered by the victim in question; or

(ii) the same or any connected accident, injury or disease suffered by another;

(h) any payment made out of property held for the purposes of any prescribed trust (whether the payment also falls within paragraph (g) above or not);

(i) any payment made to the victim by an insurance company within the meaning of the [1982 c. 50.] Insurance Companies Act 1982 under the terms of any contract of insurance entered into between the victim and the company before—

(i) the date on which the victim first claims a relevant benefit in consequence of the disease in question; or

(ii) the occurrence of the accident or injury in question;

(j) any redundancy payment falling to be taken into account in the assessment of damages in respect of an accident, injury or disease.

(4) Regulations may provide that any prescribed payment shall be an exempt payment for the purposes of this Part of this Act.

(5) Except as provided by any other enactment, in the assessment of damages in respect of an accident, injury or disease the amount of any relevant benefits paid or likely to be paid shall be disregarded.

(6) If, after making the relevant deduction from the compensation payment, there would be no balance remaining for payment to the intended recipient, any reference in this Part to the making of the compensation payment shall be construed in accordance with regulations.

(7) This Part of this Act shall apply in relation to any compensation payment made on or after 3rd September 1990 (the date of the coming into force of section 22 of the [1989 c. 24.] Social Security Act 1989 which, with Schedule 4 to that Act, made provision corresponding to that made by this Part) to the extent that it is made in respect of—

(a) an accident or injury occurring on or after 1st January 1989; or

(b) a disease, if the victim’s first claim for a relevant benefit in consequence of the disease is made on or after that date.