Recouping Compensation Payments Under Section 49
Section 49 deals with recouping compensation payments where dependants have been successfully awarded damages after payment has been made.
As dependants are not entitled to both damages and compensation, they are required to either repay the full amount of any lump sum payment made or the amount of damages recovered, whichever is the lesser.
This section alleviates a potentially interesting situation.
If but for the section, one dependant may successfully claim compensation and receive a full lump sum entitlement based on whole dependency.
Another may then “appear” and either sue the Commonwealth or a third party for damages; a classic form of double dipping or taking “two bites of the cherry”. This type of dependant is known as a “prescribed dependant”.
Section 49 provides the legal basis to ensuring that any dependant who successfully settles a damages claim must repay any compensation paid to other dependant/s.
This is why it is so important to ensure that all attempts are made from the outset to ensure all dependants are included in the section 17 lump sum determination payment made. It may well be that a dependant is either:
-
not aware of an entitlement under the Act;
-
elected not to claim compensation; or
-
was trying to maximise the amount of money awarded.
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-six-death-claims/part-three-death-claims-and-damages/damages-and-act/recouping-compensation-payments-under-section-49
Section 49 formula
Section 49 deals with recouping compensation payments where dependants have been successfully awarded damages after payment has been made.
As dependants are not entitled to both damages and compensation, they are required to either repay the full amount of any lump sum payment made or the amount of damages recovered, whichever is the lesser.
This section alleviates a potentially interesting situation.
If but for the section, one dependant may successfully claim compensation and receive a full lump sum entitlement based on whole dependency.
Another may then “appear” and either sue the Commonwealth or a third party for damages; a classic form of double dipping or taking “two bites of the cherry”. This type of dependant is known as a “prescribed dependant”.
Section 49 provides the legal basis to ensuring that any dependant who successfully settles a damages claim must repay any compensation paid to other dependant/s.
This is why it is so important to ensure that all attempts are made from the outset to ensure all dependants are included in the section 17 lump sum determination payment made. It may well be that a dependant is either:
-
not aware of an entitlement under the Act;
-
elected not to claim compensation; or
-
was trying to maximise the amount of money awarded.
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-six-death-claims/part-three-death-claims-and-damages/damages-and-act/recouping-compensation-payments-under-section-49/section-49-formula
If there is only one prescribed dependant
Section 49 deals with recouping compensation payments where dependants have been successfully awarded damages after payment has been made.
As dependants are not entitled to both damages and compensation, they are required to either repay the full amount of any lump sum payment made or the amount of damages recovered, whichever is the lesser.
This section alleviates a potentially interesting situation.
If but for the section, one dependant may successfully claim compensation and receive a full lump sum entitlement based on whole dependency.
Another may then “appear” and either sue the Commonwealth or a third party for damages; a classic form of double dipping or taking “two bites of the cherry”. This type of dependant is known as a “prescribed dependant”.
Section 49 provides the legal basis to ensuring that any dependant who successfully settles a damages claim must repay any compensation paid to other dependant/s.
This is why it is so important to ensure that all attempts are made from the outset to ensure all dependants are included in the section 17 lump sum determination payment made. It may well be that a dependant is either:
-
not aware of an entitlement under the Act;
-
elected not to claim compensation; or
-
was trying to maximise the amount of money awarded.
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-six-death-claims/part-three-death-claims-and-damages/damages-and-act/recouping-compensation-payments-under-section-49/if-there-only-one-prescribed-dependant
More than one prescribed dependant
Section 49 deals with recouping compensation payments where dependants have been successfully awarded damages after payment has been made.
As dependants are not entitled to both damages and compensation, they are required to either repay the full amount of any lump sum payment made or the amount of damages recovered, whichever is the lesser.
This section alleviates a potentially interesting situation.
If but for the section, one dependant may successfully claim compensation and receive a full lump sum entitlement based on whole dependency.
Another may then “appear” and either sue the Commonwealth or a third party for damages; a classic form of double dipping or taking “two bites of the cherry”. This type of dependant is known as a “prescribed dependant”.
Section 49 provides the legal basis to ensuring that any dependant who successfully settles a damages claim must repay any compensation paid to other dependant/s.
This is why it is so important to ensure that all attempts are made from the outset to ensure all dependants are included in the section 17 lump sum determination payment made. It may well be that a dependant is either:
-
not aware of an entitlement under the Act;
-
elected not to claim compensation; or
-
was trying to maximise the amount of money awarded.
Source URL: https://clik.dva.gov.au/military-compensation-reference-library/historical-information/comcare-operations-manual/volume-six-death-claims/part-three-death-claims-and-damages/damages-and-act/recouping-compensation-payments-under-section-49/more-one-prescribed-dependant