4.5.3 Where the MRCC takes over or institutes proceedings against a third party | Military Compensation MRCA Manuals and Resources Library, Policy Manual, Ch 4 Liabilities Arising Apart from this Act, 4.5 Summary of the recovery and compensation provisions following a successful common law action

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4.5.3 Where the MRCC takes over or institutes proceedings against a third party

Subsections 398(2) and 398(3) define what is recovered and what compensation is payable if the MRCC successfully takes over or institutes proceedings against a third party.

Subsection 398(2) requires recovery of all compensation paid prior to the settlement (excluding any payments for MRCA Supplement under sections 221 and 245, bereavement payments under sections 242 and 255, and weekly compensation for eligible young persons under section 253).  The recovery provisions also include any costs incidental to the claim such as the cost of arranging an independent medical assessment for the purpose of assessing liability or eligibility for compensation.

Subsection 398(3) operates in the same manner as subsection 388(6), insofar as it precludes a plaintiff from receiving any compensation, including treatment under Chapter 6, following receipt of common law damages or a settlement amount.  The significant difference is that (under subsection 398(3)) compensation becomes payable again when the amount of compensation that would have been payable under the Act exceeds the amount of the settlement.  Hence, the plaintiff's entitlement to compensation, including treatment, will only cease during the period that the settlement amount exceeds the amount of compensation payable.