8.4 Concepts to Explain to a Claimant Affected By Lump Sum Payments

It is important that the following two concepts are clearly explained to veterans or dependants before they accept a lump sum or proceed with a claim or application which is effected by Section 25A:

1. The initial offset amount will increase by CPI at the same time as their Disability Compensation Payment is increased and
2. The offset is not a repayment of the lump sum and
3. The offset will remain on their Disability Compensation Payment for the whole of their life, regardless of how long they live (except for lump sums paid under s30 of DRCA.