Summary
Q: i have been awarded damages in an industrial injury claim after my employer accepted liability. What is the Compensation Recovery Unit claim for? Shouldn't the defendants pay that? What is the maximum they can claim out of my award? I have been paying tax for 50 years and it seems unfair that the Government should get some of my compensation.
A: The Compensation Recovery Unit is part of the Department for Work and Pensions, and its aim is to recoup from "compensators" - usually insurance companies - expenses incurred by the state as a result of an accident or injury. It operates by means of a deduction from your damages, but only in respect of benefits or NHS treatment you have already received. For example, your settlement figure may well include a claim for lost earnings. You will in effect receive the difference between the state benefits you have received since your injury and the pay you would have earned if you had been at work. Your employer's insurers will have to repay the benefits you have already received. Only benefits until the date of settlement or five years from the date of the accident (if earlier) are recoverable.See the full content of this document
Extract
Expenses Incurred by State Recovered
Q: I dented an old Daimler in a car park. I told the owner I would pay for the repair and he agreed to take h...
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