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STATUTORY INSTRUMENTS


1997 No. 1183 (N.I. 12)

NORTHERN IRELAND

The Social Security (Recovery of Benefits) (Northern Ireland) Order 1997

  Made 8th April 1997 
  Laid before Parliament 14th May 1997 
  Coming into operation on days to be appointed under Article 1(2)


ARRANGEMENT OF ORDER

1. Title and commencement.
2. Interpretation.
Introductory
3. Cases in which this Order applies.
4. Compensation payments to which this Order applies.
5. "the relevant period".
Certificates of recoverable benefits
6. Applications for certificates of recoverable benefits.
7. Information contained in certificates.
Liability of person paying compensation
8. Liability to pay Department amount of benefits.
9. Recovery of payments due under Article 8.
Reduction of compensation payment
10. Reduction of compensation payment.
11. Article 10: supplementary.
Reviews and appeals
12. Review of certificates of recoverable benefits.
13. Appeals against certificates of recoverable benefits.
14. Reference of questions to medical appeal tribunal.
15. Appeal to Social Security Commissioner.
16. Reviews and appeals: supplementary.
Courts
17. Court orders.
18. Payments into court.
19. Benefits irrelevant to assessment of damages.
Reduction of compensation: complex cases
20. Lump sum and periodical payments.
21. Payments by more than one person.
Miscellaneous
22. Amounts overpaid under Article 8.
23. Compensation payments to be disregarded.
24. Liability of insurers.
25. Provision of information.
26. Power to amend Schedule 2.
General
27. The Crown.
28. Regulations and orders.
29. Financial arrangements.
30. Power to make transitional, consequential etc. provisions.
31. Consequential amendments and repeals.

SCHEDULES:

  Schedule 1 -  Compensation payments.
  Part I -  Exempted payments.
  Part II -  Power to disregard small payments.

  Schedule 2 -  Calculation of compensation payment.

  Schedule 3 -  Consequential amendments.

  Schedule 4 -  Repeals.

At the Court at Windsor Castle, the 8th day of April 1997

Present,

The Queen's Most Excellent Majesty in Council

Whereas this Order is made only for purposes corresponding to those of the provisions of the Social Security (Recovery of Benefits) Act 1997:

     Now, therefore, Her Majesty, in exercise of the powers conferred by paragraph 1 of Schedule 1 to the Northern Ireland Act 1974 (as modified by section 25 of the said Act of 1997) and of all other powers enabling Her in that behalf, is pleased, by and with the advice of Her Privy Council, to order, and it is hereby ordered, as follows: - 

Title and commencement
     1.  - (1) This Order may be cited as the Social Security (Recovery of Benefits) (Northern Ireland) Order 1997.

    (2) This Order shall come into operation on such day or days as the Department may by order appoint.

Interpretation
    
2.  - (1) The Interpretation Act (Northern Ireland) 1954 shall apply to Article 1 and the following provisions of this Order as it applies to a Measure of the Northern Ireland Assembly.

    (2) In this Order - 

Introductory

Cases in which this Order applies
    
3.  - (1) This Order applies in cases where - 

    (2) The reference in paragraph (1)(a) to a payment in consequence of any accident, injury or disease is to a payment made - 

but does not include a payment mentioned in Part I of Schedule 1.

    (3) Paragraph (1)(a) applies to a payment made - 

    (4) In a case where this Order applies - 

Compensation payments to which this Order applies
    
4. This Order applies in relation to compensation payments made on or after the day on which this Article comes into operation, unless they are made in pursuance of a court order or agreement made before that day.

"The relevant period"
    
5.  - (1) In relation to a person ("the claimant") who has suffered any accident, injury or disease, "the relevant period" has the meaning given by the following paragraphs.

    (2) Subject to paragraph (4), if it is a case of accident or injury, the relevant period is the period of five years from the day on which the accident or injury in question occurred.

    (3) Subject to paragraph (4), if it is a case of disease, the relevant period is the period of five years beginning with (and including) the date on which the claimant first claims a listed benefit in consequence of the disease.

    (4) If at any time before the end of the period referred to in paragraph (2) or (3t

the relevant period ends at that time.

Certificates of recoverable benefits

Applications for certificates of recoverable benefits
    
6.  - (1) Before a person ("the compensator") makes a compensation payment he shall apply to the Department for a certificate of recoverable benefits.

    (2) Where the compensator applies for a certificate of recoverable benefits, the Department shall - 

    (3) The period is - 

which begins with the day on which the application is received.

    (4) The certificate is to remain in force until the date specified in it for that purpose.

    (5) The compensator may apply for fresh certificates from time to time.

    (6) Where a certificate of recoverable benefits ceases to be in force, the Department may issue a fresh certificate without an application for one being made.

    (7) Where the compensator applies for a fresh certificate while a certificate ("the existing certificate") remains in force, the Department shall issue the fresh certificate before the end of the following period.

    (8) The period is - 

which begins with the day on which the existing certificate ceases to be in force.

    (9) For the purposes of this Order, regulations may provide for the day on which an application for a certificate of recoverable benefits is to be treated as received.

Information contained in certificates
    
7.  - (1) A certificate of recoverable benefits shall specify, for each recoverable benefit - 

    (2) In a case where the relevant period has ended before the day on which the Department receives the application for the certificate, the date specified in the certificate for the purposes of paragraph (1) shall be the day on which the relevant period ended.

    (3) In any other case, the date specified for those purposes shall not be earlier than the day on which the Department received the application.

    (4) The Department may estimate, in such manner as it thinks fit, any of the amounts, rates or periods specified in the certificate.

    (5) Where the Department issues a certificate of recoverable benefits, it shall provide the information contained in the certificate to - 

    (6) A person to whom a certificate of recoverable benefits is issued or who is provided with information under paragraph (5) is entitled to particulars of the manner in which any amount, rate or period specified in the certificate has been determined, if he applies to the Department for those particulars.

Liability of person paying compensation

Liability to pay Department amount of benefits
    
8.  - (1) A person who makes a compensation payment in any case is liable to pay to the Department an amount equal to the total amount of the recoverable benefits.

    (2) The liability referred to in paragraph (1) arises immediately before the compensation payment or, if there is more than one, the first of them is made.

    (3) No amount becomes payable under this Article before the end of the period of 14 days from the day on which the liability arises.

    (4) Subject to paragraph (3), an amount becomes payable under this Article at the end of the period of 14 days beginning with (and including) the day on which a certificate of recoverable benefits is first issued showing that the amount of recoverable benefit to which it relates has been or is likely to have been paid before a specified date.

Recovery of payments due under Article 8
    
9.  - (1) This Article applies where a person has made a compensation payment but - 

    (2) The Department may - 

and (in either case) issue him with a demand that payment of any amount due under Article 8 be made immediately.

    (3) The Department may, in accordance with paragraph (4), recover the amount for which a demand for payment is made under paragraph (2) from the person who made the compensation payment.

    (4) Any amount recoverable under paragraph (3) shall, if the county court so orders, be enforceable as if it were payable under an order of that court.

    (5) A document bearing a certificate which - 

is conclusive evidence that that amount is so recoverable.

    (6) A certificate under paragraph (5) purporting to be signed by a person authorised to do so by the Department is to be treated as so signed unless the contrary is proved.

Reduction of compensation payment

Reduction of compensation payment
    
10.  - (1) This Article applies in a case where, in relation to any head of compensation listed in column (1) of Schedule 2 - 

    (2) In such a case, any claim of a person to receive the compensation payment is to be treated for all purposes as discharged if  - 

    (3) For each head of compensation listed in column (1) of Schedule 2 for which sub-paragraphs (a) and (b) of paragraph (1) are met, so much of the gross amount of the compensation payment as is attributable to that head is to be reduced (to nil, if necessary) by deducting the amount of the recoverable benefit or, as the case may be, the aggregate amount of the recoverable benefits shown against it.

    (4) Paragraph (3) is to have effect as if a requirement to reduce a payment by deducting an amount which exceeds that payment were a requirement to reduce that payment to nil.

    (5) The amount of the compensation payment calculated in accordance with this Article is - 

less

(and, accordingly, the amount may be nil).

Article 10: supplementary
    
11.  - (1) A person who makes a compensation payment calculated in accordance with Article 10 shall inform the person to whom the payment is made - 

    (2) If the amount of a compensation payment calculated in accordance with Article 10 is nil, a person giving a statement saying so is to be treated for the purposes of this Order as making a payment within Article 3(1)(a) on the day on which he gives the statement.

    (3) Where a person - 

he is to be treated, for the purpose of determining any rights and liabilities in respect of contribution or indemnity, as having paid the gross amount of the compensation payment.

    (4) For the purposes of this Order - 

Review of certificates of recoverable benefits
    
12.  - (1) The Department may review any certificate of recoverable benefits if it is satisfied - 

    (2) On a review under this Article the Department may either - 

    (3) The Department may not vary the certificate so as to increase the total amount of the recoverable benefits unless it appears to the Department that the variation is required as a result of the person who applied for the certificate supplying the Department with incorrect or insufficient information.

Appeals against certificates of recoverable benefits
    
13.  - (1) An appeal against a certificate of recoverable benefits may be made on the ground - 

    (2) An appeal under this Article may be made by - 

    (3) No appeal may be made under this Article until - 

    (4) For the purposes of paragraph (3)(a), if an award of damages in respect of a claim has been made under or by virtue of paragraph 10(2)(a) of Schedule 6 to the Administration of Justice Act 1982, (orders for provisional damages in personal injury cases), the claim is to be treated as having been finally disposed of.

    (5) Regulations may make provision - 

    (6) Regulations under paragraph (5)(c) may (among other things) provide that the circumstances in which a review may be carried out are not to be restricted to those specified in Article 12(1).

Reference of questions to medical appeal tribunal
    
14.  - (1) The Department shall refer to a medical appeal tribunal any question mentioned in paragraph (2) arising for determination on an appeal under Article 13.

    (2) The questions are any concerning - 

    (3) In determining any question referred to it under paragraph (1), the tribunal shall take into account any decision of a court relating to the same, or any similar, issue arising in connection with the accident, injury or disease in question.

    (4) On a reference under paragraph (1) a medical appeal tribunal may either - 

    (5) When the Department has received the decision of the tribunal on the questions referred to the tribunal under paragraph (1), the Department shall in accordance with that decision either - 

    (6) Regulations may make provision - 

    (7) Regulations under paragraph (6)(b) may (among other things) provide for the non-disclosure of medical advice or medical evidence given or submitted following a reference under paragraph (1).

    (8) In this Article "medical appeal tribunal" means a medical appeal tribunal constituted under section 48 of the Administration Act.

Appeal to Social Security Commissioner
    
15.  - (1) An appeal may be made to a Commissioner against any decision of a medical appeal tribunal under Article 14 on the ground that the decision was erroneous in point of law.

    (2) An appeal under this Article may be made by - 

    (3) Subsections (7) to (10) of section 21 of the Administration Act apply to appeals under this Article as they apply to appeals under that section.

    (4) In this Article "Commissioner" has the same meaning as in section 167(1) of the Administration Act.

Reviews and appeals: supplementary
    
16.  - (1) This Article applies in cases where a fresh certificate of recoverable benefits is issued as a result of a review under Article 12 or an appeal under Article 13.

    (2) If - 

regulations may provide for the Department to pay the difference to that person, or to the person to whom the compensation payment is made, or partly to one and partly to the other.

    (3) If - 

regulations may provide for that person to pay the difference to the Department.

    (4) Regulations under this Article may provide - 

and may provide for any matter by modifying this Order.

Courts

Court orders
    
17.  - (1) This Article applies where a court makes an order for a compensation payment to be made in any case, unless the order is made with the consent of the injured person and the person by whom the payment is to be made.

    (2) The court shall, in the case of each head of compensation listed in column (1) of Schedule 2 to which any of the compensation payment is attributable, specify in the order the amount of the compensation payment which is attributable to that head.

Payments into court
    
18.  - (1) Regulations may make provision (including provision modifying this Order) for any case in which a payment into court is made.

    (2) The regulations may (among other things) provide - 

    (3) Rules of court and county court rules may make provision governing practice and procedure in such cases.

Benefits irrelevant to assessment of damages
    
19. In assessing damages in respect of any accident, injury or disease, the amount of any listed benefits paid or likely to be paid is to be disregarded.

Reduction of compensation: complex cases

Lump sum and periodical payments
    
20.  - (1) Regulations may make provision (including provision modifying this Order) for any case in which two or more compensation payments in the form of lump sums are made by the same person to or in respect of the injured person in consequence of the same accident, injury or disease.

    (2) The regulations may (among other things) provide - 

    (3) For the purposes of paragraph (2), the regulations may provide for the gross amounts of the compensation, ,payments to be aggregated and for - 

and for the amount of any recoverable benefit shown against any head in column (2) of that Schedule to be taken to be the amount determined in accordance with the most recent certificate of recoverable benefits.

    (4) Regulations may make provision (including provision modifying this Order) for any case in which, in final settlement of the injured person's claim, an agreement is entered into for the making of - 

    (5) Regulations made by virtue of paragraph (4) may (among other things) provide - 

    (6) A periodical payment may be a compensation payment for the purposes of this Article even though it is a small payment (as defined in Part II of Schedule 1).

Payments by more than one person
    
21.  - (1) Regulations may make provision (including provision modifying this Order) for any case in which two or more persons ("the compensators") make compensation payments to or in respect of the same injured person in consequence of the same accident, injury or disease.

    (2) In such a case, the sum of the liabilities of the compensators under Article 8 is not to exceed the total amount of the recoverable benefits, and the regulations may provide for determining the respective liabilities under that Article of each of the compensators.

    (3) The regulations may (among other things) provide in the case of each compensator - 

Amounts overpaid under Article 8
    
22.  - (1) Regulations may make provision (including provision modifying this Order) for cases where a person has paid to the Department under Article 8 any amount ("the amount of the overpayment") which he was not liable to pay.

    (2) The regulations may provide - 

    (3) Regulations made by virtue of paragraph (2)(b) are to have effect in spite of anything in section 69 of the Administration Act (overpayments - general).

    (4) The regulations may also (among other things) provide - 

    (5) This Article does not apply in a case where Article 16 applies.

Compensation payments to be disregarded
    
23.  - (1) If, when a compensation payment is made, the first and second conditions are met, the 'payment is to be disregarded for the purposes of Articles 8 and 10.

    (2) The first condition is that the person making the payment - 

    (3) An application complies with this paragraph if it - 

    (4) The second condition is that the Department has not sent the certificate to the person, at the address, specified in the application, before the end of the period allowed under Article 6.

    (5) In any case where - 

paragraph (1) is to cease to apply in relation to the compensation payment.

    (6) If, in the opinion of the Department, circumstances have arisen which adversely affect normal methods of communication - 

Liability of insurers
    
24.  - (1) If a compensation payment is made in a case where - 

the policy is also to be treated as covering any liability of that person under Article 8.

    (2) Liability imposed on the insurer by paragraph (1) cannot be excluded or restricted.

    (3) For that purpose excluding or restricting liability includes - 

    (4) Regulations may in prescribed cases limit the amount of the liability imposed on the insurer by paragraph (1).

    (5) This Article applies to policies of insurance issued before (as well as those issued after) its coming into operation.

    (6) References in this Article to policies of insurance and their issue include references to contracts of insurance and their making.

Provision of information
    
25.  - (1) Where compensation is sought in respect of any accident, injury or disease suffered by any person ("the injured person"), the following persons shall give the Department the prescribed information about the injured person - 

    (2) A person who receives or claims a listed benefit which is or is likely to be paid in respect of an accident, injury or disease suffered by him, shall give the Department the prescribed information about the accident, injury or disease.

    (3) Where a person who has received a listed benefit dies, the duty in paragraph (2) is imposed on his personal representative.

    (4) Any person who makes a payment (whether on his own behalf or not) - 

any accident, injury or disease, or any damage to property, shall, if the Department requests him in writing to do so, give the Department such particulars relating to the size and composition of the payment as are specified in the request.

    (5) The employer of a person who suffers or has suffered an accident, injury or disease, and anyone who has been the employer of such a person at any time during the relevant period, shall give the Department the prescribed information about the payment of statutory sick pay in respect of that person.

    (6) In paragraph (5) "employer" has the same meaning as it has in Part XI of the Contributions and Benefits Act.

    (7) A person who is required to give information under this Article shall do so in the prescribed manner, at the prescribed place and within the prescribed time.

    (8) Article 3 does not apply in relation to this Article.

Power to amend Schedule 2
    
26.  - (1) The Department may by regulations amend Schedule 2.

    (2) Regulations made under paragraph (1) shall be laid before the Assembly after being made and shall take effect on such date as may be specified in the regulations, but shall (without prejudice to the validity of anything done thereunder or to the making of new regulations) cease to have effect upon the expiration of a period of six months from that date unless at some time before the expiration of that period the regulations have been approved by a resolution of the Assembly.

General

The Crown
    
27. This Order binds the Crown to the full extent authorised by the constitutional laws of Northern Ireland.

Regulations and orders
    
28.  - (1) Regulations or orders made under this Order other than orders made under Article l(2) or regulations made under Article 26(1) shall be subject to negative resolution.

    (2) Regulations under Article 22, under Article 26 amending the list of benefits in column (2) of Schedule 2 or under paragraph 9 of Schedule 1 may not be made without the consent of the Department of Finance and Personnel.

    (3) Subsections (4), (5), (6) and (10) of section 165 of the Administration Act (regulations and orders - general) apply for the purposes of this Order as they apply for the purposes of that Act.

Financial arrangements
    
29.  - (1) There shall be paid out of the National Insurance Fund any expenses of the Department in making payments under Article 16 or 22 to the extent that the Department estimates that those payments relate to sums paid out of that Fund.

    (2) Any sums paid to the Department under Article 8 or 16 shall be paid - 

Power to make transitional, consequential etc. provisions
    
30.  - (1) Regulations may make such transitional and consequential provisions, and such savings, as the Department considers necessary or expedient in preparation for, in connection with, or in consequence of - 

    (2) Regulations under this Article may (among other things) provide - 

Consequential amendments and repeals
    
31.  - (1) Schedule 3 (which makes consequential amendments) is to have effect.

    (2) The statutory provisions shown in Schedule 4 are repealed to the extent specified in the third column.


N.H. Nicholls
Clerk of the Privy Council


SCHEDULES


SCHEDULE 1
Article 3.


COMPENSATION PAYMENTS




PART I

EXEMPTED PAYMENTS

     1. Any small payment (defined in Part II of this Schedule).

     2. Any payment made to or for the injured person under Article 14 of the Criminal Justice (Northern Ireland) Order 1994 (compensation orders against convicted persons).

     3. 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 - 

     4. Any payment made out of property held for the purposes of any prescribed trust (whether the payment also falls within paragraph 3 or not).

     5. Any payment made to the injured person by an insurance company within the meaning of the Insurance Companies Act 1982 under the terms of any contract of insurance entered into between the injured person and the company before - 

     6. Any redundancy payment falling to be taken into account in the assessment of damages in respect of an accident, injury or disease.

     7. So much of any payment as is referable to costs.

     8. Any prescribed payment.



PART II

POWER TO DISREGARD SMALL PAYMENTS

     9.  - (1) Regulations may make provision for compensation payments to be disregarded for the purposes of Articles 8 and 10 in prescribed cases where the amount of the compensation payment, or the aggregate amount of two or more connected compensation payments, does not exceed the prescribed sum.

    (2) A compensation payment disregarded by virtue of this paragraph is referred to in paragraph 1 as a "small payment".

    (3) For the purposes of this paragraph - 



SCHEDULE 2
Article 10.


CALCULATION OF COMPENSATION PAYMENT




(1) (2)
Head of compensation Benefit
     1. Compensation for earnings lost during the relevant period

Disability working allowance

Disablement pension payable under section 103 of the Contributions and Benefits Act

Incapacity benefit

Income support

Invalidity pension and allowance

Jobseeker's allowance

Reduced earnings allowance

Severe disablement allowance

Sickness benefit

Statutory sick pay

Unemployability supplement

Unemployment benefit

     2. Compensation for cost of care incurred during the relevant period

Attendance allowance

Care component of disability living allowance

Disablement pension increase payable under section 104 or 105 of the Contributions and Benefits Act

     3. Compensation for loss of mobility during the relevant period

Mobility allowance

Mobility component of disability living allowance


NOTES
     1.  - (1) The reference to unemployment benefit also includes any income support paid with that benefit on the same instrument of payment or paid concurrently with that benefit by means of an instrument for benefit payment.

    (2) For the purpose of this Note, income support includes personal expenses addition, special transitional addition and transitional addition as defined in the Income Support (Transitional) Regulations (Northern

     2. Any reference to statutory sick pay - 



SCHEDULE 3
Article 31(1).


CONSEQUENTIAL AMENDMENTS


The Law Reform (Miscellaneous Provisions) Act (Northern Ireland) 1948 (c. 23 (N.I.))

     1. In section 3 (measure of damages, etc.), subsections (1), (1 A) and (3) are omitted.

The Social Security Administration (Northern Ireland) Act 1992 (c. 8)

     2. Part IV is omitted.

     3.  - (1) Section 104 (appointment and powers of inspectors) is amended as follows.

    (2) In subsection (2)(b)(ii), for "relevant" there is substituted "listed".

    (3) In subsections (2)(c)(iii), (6)(a)(iii) and (7)(e)(ii), for "relevant payment" there is substituted "payment to the Department under Article 8 of the Social Security (Recovery of Benefits) (Northern Ireland) Order 1997".

    (4) In subsection (3)(d) - 

    (5) In subsection (8), the word "and" immediately preceding paragraph (e) is omitted and after that paragraph there is inserted - 

    (6) For subsection (9) there is substituted - 

     4. In section 118(1) (regulations as to notification of deaths) - 

     5. In section 143 (general financial arrangements), subsections (1)(e) and (2)(d) are omitted.

     6. In section 144(6) (destination of repayments), the words from "or paid" to "78 above" are omitted.

     7. In section 149(5) (the Social Security Advisory Committee) in the definition of "the relevant enactments", after paragraph (ab) there is inserted - 

     8. In section 156 (payment of travelling expenses by the Department), after "1995" (in both places) there is inserted ", the Social Security (Recovery of Benefits) (Northern Ireland) Order 1997".

     9. In section 165(g) (Department of Finance and Personnel approval to regulations and orders) - 

     10. In section 166(2) (Assembly control of orders and regulations), in paragraph (a) "97(2)," is omitted.

     11. In section 167(1) (interpretation), the definitions of "compensation payment" and "compensator" are omitted.

The Deregulation and Contracting Out (Northern Ireland) Order 1996 (NI 11)

     12. At the end of Article 17(2) (social security: amendments following certain orders) there is added "the Social Security (Recovery of Benefits) Act 1997.".



SCHEDULE 4
Article 31(2).


REPEALS


Chapter or Number Short title Extent of repeal
1948 c. 23 (N.I.). The Law Reform (Miscellaneous Provisions) Act (Northern Ireland) 1948. In section 3, subsections (1), (1A) and (3).
1989 NI 13. The Social Security (Northern Ireland) Order 1989. In Schedule 4, paragraph 22(1) and (2).
1990 NI 15. The Social Security (Northern Ireland) Order 1990. In Schedule 1, paragraph 6.
1992 c. 8. The Social Security Administration (Northern Ireland) Act 1992. Part IV.
    In section 104(8), the word "and" immediately preceding paragraph (e).
    In section 143, subsections (1)(e) and (2)(d).
    In section 144(6), the words from "or paid" to "78 above".
    In section 165(9), paragraph (a), and in paragraph (b), the words "81 or".
    In section 166(2)(a), "97(2),".
    In section 167(1), the definitions of "compensation payment" and "compensator".
1992 c. 9. The Social Security (Consequential Provisions) (Northern Ireland) Act 1992. In Schedule 2, paragraph 1.
1995 NI 15. The Jobseekers (Northern Ireland) Order 1995. In Schedule 2, paragraphs 35 and 37.



EXPLANATORY NOTE

(This note is not part of the Order)


This Order is made only for purposes corresponding to those of the Social Security (Recovery of Benefits) Act 1997. It replaces Part IV of the Social Security Administration (Northern Ireland) Act 1992. The principal changes are - 


ISBN 0 11 064481 6


 
© Crown copyright 1997
Prepared 18 June 1997


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