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4.5.4 Where a person or a dependant recovers damages from a third party
Subsection 401(2) defines what compensation is recovered if the person institutes proceedings against a third party. This situation is similar to subsection 388(5), however the person is suing a third-party and not the Commonwealth. The amount to be repaid is the lesser of the amount of compensation already paid to the person (in relation to that cause of action) and the amount of damages awarded. The recovery excludes 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.
Subsection 402(2) provides that compensation is not payable and treatment eligibility ceases after a person successfully sues a third party. Section 5 of the MRCA defines “compensation” to include medical treatment provided under Chapter 6. Accordingly subsection 402(2) precludes the plaintiff from receiving any compensation, including compensation for treatment provided under Chapter 6. However, compensation for MRCA Supplement under section 221 or 245, bereavement payments under section 242 and 255 (where the deceased member of former member was in receipt of periodic payments for permanent impairment compensation), and section 253 (for weekly compensation to eligible young persons) continues after the date on which the damages are recovered by the person.