The Armed Forces and Reserve Forces (Compensation Scheme) Order 2011

Adjustment in benefit to take account of awards of damages U.K.

40.—(1) This article applies where the Secretary of State is satisfied that damages have been or will be recovered by any person in respect of—

(a) an injury or its effects for which benefit is payable; or

(b) the death of a person for which benefit is payable.

(2) Subject to paragraph (3), those damages are to be taken into account against any benefit which might otherwise be payable under this Order and the Secretary of State is to withhold or reduce any such benefit accordingly.

(3) The Secretary of State may not—

(a) take the damages into account where the Secretary of State is satisfied that benefit payable under this Order has been taken into account in the assessment of the damages;

(b) withhold or reduce a bereavement grant payable under article 29(1)(b) [F1 , or]

[F2 (c) take the damages into account to withhold or reduce armed forces independence payment.]

(4) In calculating the amount of benefit to withhold or reduce under paragraph (1), the Secretary of State may take account of the full value of any damages which have been or will be recovered.

(5) The Secretary of State may require a claimant to provide—

(a) details of any steps taken or planned to obtain damages in respect of the same injury or death for which benefit is payable;

(b) a written undertaking that if damages are recovered the claimant will notify the Secretary of State and repay any benefit paid under this Order.

(6) In this article damages include any payment received as a result of a claim made in respect of —

(a) an injury or the effects of an injury for which benefit is payable; or

(b) the death of a person for which benefit is payable.

(7) Paragraph (6) applies whether or not the payment is made—

(i) in pursuance of a judgment or order of a court of any jurisdiction; or

(ii) by settlement or compromise of the claim, whether or not proceedings are instituted to enforce the claim.

(8) A person to whom or for whose benefit the compensation is paid is to be treated as recovering damages and the compensation paid is to be treated as the damages recovered where compensation is paid—

(a) under the Criminal Injuries Compensation Scheme established under the Criminal Injuries Compensation Act 1995 M1 ;

(b) under the Criminal Injuries (Compensation) (Northern Ireland) Order 2002 M2 ; or

(c) under the scheme established by the Ministry of Defence for the purposes of paying compensation to members of the forces who suffer injury as a result of a crime committed outside the United Kingdom.

Textual Amendments

F1 Word and comma in art. 40(3)(b) substituted (8.4.2013) for full stop by The Armed Forces and Reserve Forces (Compensation Scheme) (Amendment) Order 2013 (S.I. 2013/436), arts. 1(1), 2(5)(a)

F2 Art. 40(3)(c) inserted (8.4.2013) by The Armed Forces and Reserve Forces (Compensation Scheme) (Amendment) Order 2013 (S.I. 2013/436), arts. 1(1), 2(5)(b)

Marginal Citations

M1 1995 c. 53.

M2 S.I. 2002/796 (N.I. 1).